Company: TELO
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010298
Chunk: 16

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 16
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Research
and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract
research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs,
including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in
which they are incurred.

Stock-based
compensation

The
Company accounts for stock-based compensation under the provisions of FASB ASC 718, “Compensation - Stock Compensation”,
which requires the measurement and recognition of compensation expense for all stock-based awards made to employees, directors and consultants
based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using
the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the
requisite service periods using the straight-line method. The Company has elected to account for forfeiture of stock-based awards as
they occur.

Results
of Operations

For
the three months ended March 31, 2025
compared to the three months ended March 31, 2024

Research
and Development Expenses. During the three months ended March 31, 2025, we incurred $0.4 million
in research and development expenses, which were primarily related to toxicology studies, pre-clinical research projects and related
manufacturing for pre-clinical research projects. We incurred $0.8 million in research and development expenses during the three months
ended March 31, 2024, relating to initial payments for toxicology studies and consulting arrangements. Research and development
expenses represent costs incurred to conduct research and development of our product candidate and consist primarily of contracted pre-clinical
research and manufacturing, toxicology, consulting arrangements and other expenses incurred to advance the Company’s research and
development activities. The main driver in the decrease year over year relates to the Company making a focused effort to conserve cash
until additional funding is secured.

Since
inception, we have not earned any revenue, nor do we anticipate doing so until we successfully conclude preclinical and clinical development
and obtain regulatory approval. The timing and certainty of this event remain unknown.

15

Our
operating expenses have historically been the costs associated with our initial investment in pre-clinical research and development activities.
We expect research and development expenses to increase in the future as we advance TELO