Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 28

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 28
---
 the Reverse Merger resulted in an ownership
change under Section 382 of the Internal Revenue Code for PTSC, PTSC’s pre-merger net operating loss carryforwards and certain
other tax attributes may be subject to limitations. In addition, if we enter into a definitive agreement with Oncotelic, we would experience
a greater than 50% change in ownership that could cause further limitations on our net operating loss carryforwards.

If a corporation undergoes an “ownership change”
within the meaning of Section 382 of the Code, the corporation’s net operating loss carryforwards and certain other tax attributes
arising from before the ownership change are subject to limitations on use after the ownership change. In general, an ownership change
occurs if there is a cumulative change in the corporation’s equity ownership by certain stockholders that exceeds 50 percentage
points over a rolling three-year period. Similar rules may apply under state tax laws. The Reverse Merger resulted in an ownership change
for PTSC and, accordingly, PTSC’s net operating loss carryforwards and certain other tax attributes may be subject to limitations
(or disallowance) on their use after the Reverse Merger. Additional ownership changes in the future, including the intent to issue 47,923,322
shares of common stock to Oncotelic (see Note 13 to the accompanying consolidated financial statements), could result in additional limitations
on the Company’s post-merger net operating loss carryforwards. Consequently, even if the Company achieves profitability, it may
not be able to utilize a material portion of PTSC’s, or the post-merger Company’s net operating loss carryforwards and other
tax attributes, which could have a material adverse effect on cash flow and results of operations.

Risks Related
to Our Dependence on Third Parties 

Future development collaborations may be important
to us. If we are unable to enter into or maintain these collaborations, or if these collaborations are not successful, our business could
be adversely affected. 

If we are able to raise sufficient capital and potentially
license or acquire new technologies, we may in the future determine to seek to collaborate with pharmaceutical and biotechnology companies
for the development of product candidates. We may face significant competition in seeking appropriate collaborators. Our ability to reach
a definitive agreement for any collaboration will depend, among other things, upon our assessment of the collaborator’s resources
and expertise, the terms and conditions of the proposed collaboration and the proposed collaborator’s evaluation of