Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 266

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1C
Chunk 266
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an immediate family member thereof, had or will have a direct or indirect material interest. We believe the terms obtained or consideration
that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or amounts
that would be paid or received, as applicable, in arm’s-length transactions with unrelated third parties.

82

Line
of Credit and Promissory Note with the Bay Shore Trust

On
April 28, 2023, we entered into the Bay Shore Note with the Bay Shore Trust, under which we have the right to borrow up to an aggregate
of $5,000,000 from the Bay Shore Trust at any time up to the second anniversary of the issuance of the Bay Shore Note or, if earlier,
upon the completion of our initial public offering. Our right to borrow funds under the Bay Shore Note is subject to the absence of a
material adverse change in our assets, operations, or prospects. The Bay Share Note, together with accrued interest, will become due
and payable on the second anniversary of the issuance of the note, provided that it may be prepaid at any time without penalty. The Bay
Shore Note will accrue interest at a rate equal 7% per annum, simple interest, during the first year that the note is outstanding and
10% per annum, simple interest, thereafter. The Bay Shore Note is unsecured. As of June 30, 2023, the Bay Shore Note had an outstanding
principal balance of $1.8 million and accrued and unpaid interest of $0.04 million. Under the Bay Shore Trust Conversion Agreement, the
Bay Shore Trust agreed to convert, upon the completion of our initial public offering, $1,100,190 of the outstanding principal balance
of the Bay Shore Note into shares of our common stock at a conversion price equal to our initial public offering price, which resulted
in the issuance of 157,170 shares to the Bay Shore Trust upon the completion of our initial public offering. The note was paid off as
of December 31, 2023.

In
consideration of the loan facility provided by the Bay Shore Trust, we issued to the Bay Shore Trust a common stock purchase warrant
on April 28, 2023 giving the Bay Shore Trust the right to purchase up to 1,000,000 shares of common stock at an exercise price of $5.00
per share, which warrant will expire five years after the date of grant. Pursuant to a