Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 17

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 17
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 may proceed to a reverse acquisition/merger,
with conditions typical of such a transaction.

Pursuant to the Binding Term Sheet, we needed to obtain
shareholder approval for the transaction by June 30, 2025, as amended, or we may not be able to enter into a definitive agreement with
Oncotelic, and we may need to cease our operations altogether. As of the date of this Report, we and Oncotelic are continuing to pursue
the potential transaction under the Binding Term Sheet although there are no guarantees we will enter into any definitive agreement. On
December 31, 2024, the expiration date to enter into a possible transaction with Oncotelic was extended to June 30, 2025.  

If we enter into a definitive agreement with Oncotelic
under the terms of the binding term sheet, existing stockholders will experience substantial immediate dilution. 

We have 7,242,137 shares of common stock outstanding
as of the filing date of this Report. If we enter into a definitive agreement with Oncotelic pursuant to the terms of the Binding Term
Sheet, we could issue 47,923,322 shares of our common stock to Oncotelic, resulting in immediate substantial dilution to our existing
stockholders. In addition, under the Binding Term Sheet, Oncotelic could receive up to an additional $15.0 million in shares of common
stock of Mosaic that would be valued at the time of issuance if certain milestones are achieved (see Note 13 to the accompanying consolidated
financial statements), which would cause substantial additional dilution to existing stockholders.

We currently have no development pipeline and we
may not successfully identify, license or acquire new product candidates.

The success of our business over the near term depends
upon our ability to identify and validate new potential cancer therapeutics, including the technology we intend to acquire under the Binding
Term Sheet. Efforts to identify new product candidates require substantial technical, financial and human resources, and our limited financial
resources combined with our methodology may not successfully identify medically relevant potential therapeutics to be developed as product
candidates. Moreover, our research and business development efforts may identify molecules that initially show promise yet fail to yield
product candidates for clinical development for multiple reasons. For example, potential product candidates may, on further study, be
shown to have inadequate efficacy, harmful side effects, suboptimal drug profiles, suboptimal manufacturability or stability, or other
characteristics suggesting that they