Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1321

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 11
Chunk 1321
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Level
1 - quoted prices in active markets for identical assets or liabilities.

Level
2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level
3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions).

Contingencies

In
the normal course of business, the Company may be subject to loss contingencies, such as legal proceedings, amounts arising from contractual
arrangements and claims arising out of the Company’s business that cover a wide range of matters, including, among others, government
investigations, shareholder lawsuits, and tax matters. In accordance with ASC Topic 450, Accounting for Contingencies, (ASC 450),
the Company records accruals for such loss contingencies when it is probable that a liability will be incurred, and the amount of loss
can be reasonably estimated. The Company, in accordance with this guidance, does not recognize gain contingencies until realized or realizable.

Earnings
per Share

Earnings
(loss) per share is computed in accordance with ASC Topic 260, “Earnings per Share” Basic weighted-average number
of shares of common stock outstanding for the year ended December 31, 2024 and December 31, 2023 include the shares of the Company issued
and outstanding during such period, on a weighted average basis. The basic weighted average number of shares of common stock outstanding
excludes common stock equivalents such as stock options and warrants, while diluted weighted average number of shares outstanding includes
such stock options and warrants. As of December 31, 2024 there were 1,763,750 stock warrants and 4,235,666 stock options that were not
included in the computation of diluted earnings per share, because to do so would have an antidilutive effect. As of December 31, 2023
there was 1,763,750 stock warrants and 1,215,001 stock options that were not included in the computation of diluted earnings per share,
because to do so would have an antidilutive effect.

Recent
Accounting Pronouncements 

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2023-07, “Improvements to Reportable Segment Disclosures (Topic 280)” which is intended to improve reportable segment disclosure
requirements, primarily through incremental disclosures of segment information on an annual and interim basis for all public entities.
The ASU expands