Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 140

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 140
---
 down, the seller will profit to the extent of the difference between the price at
which he originally sold it less his later purchase price. Short sales enable the seller to profit in a down market. Short sales could
place significant downward pressure on the price of our common stock. Penny stocks which do not trade on an exchange, such as our common
stock, are particularly susceptible to short sales.

We may issue preferred stock, and the terms of
such preferred stock may reduce the value of our common stock. 

We are authorized to issue up to a total of 5,000,000
shares of preferred stock in one or more series, of which, 4,300,000 have been undesignated as of December 31, 2024. Our Board of Directors
may determine whether to issue shares of preferred stock without further action by holders of our common stock. If we issue shares of
preferred stock, it could affect the rights or reduce the value of our common stock. In particular, specific rights granted to future
holders of preferred stock could be used to restrict our ability to merge with or sell our assets to a third party. These terms may include
voting rights, preferences as to dividends and liquidation, conversion and redemption rights, and sinking fund provisions. As we seek
capital for our business, such capital may be raised through the issuance of preferred stock.

 23 

Our executive officers, directors and principal
stockholders, if they choose to act together, will have the ability to control all matters submitted to stockholders for approval. 

Shareholders of Private Mosaic beneficially own shares
representing a majority of our capital stock outstanding as of December 31, 2024. As a result, if these stockholders were to choose to
act together, they would be able to control all matters submitted to our stockholders for approval, as well as our management and affairs.
For example, these persons, if they choose to act together, would control the election of directors and approval of any merger, consolidation
or sale of all or substantially all of our assets. This concentration of ownership control may:

    ·
    delay, defer or prevent a change in control;

    ·
    entrench our management and the board of directors; or

    ·
    impede a merger, consolidation, takeover or other business combination involving the Company that other stockholders may desire.

In addition, if we enter into a definitive agreement
with Oncotelic under the binding term sheet to