Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1512

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 14
Chunk 1512
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 authorities upon examination. The Company believes its tax positions are all more likely than not to be upheld
upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.

Research
and development expenses

Research
and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract
research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs,
including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in
which they are incurred.

General
and administrative expenses

General
and administrative expenses are primarily comprised of personnel costs, marketing expenses, amortization, insurance expenses, professional
services fees, travel and office expenses, and stock-based compensation

Leases

The
Company has accounted for leases under the provisions of FASB ASC Topic 842, “Leases”, which requires the Company
to recognize right-to-use (ROU) assets and lease liabilities for operating leases on the balance sheet.

Use
of estimates

The
preparation of financial statements in accordance with GAAP requires the Company’s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of expenses during the reporting period. Actual results may differ from such estimates
and such differences could be material. Significant estimates during the reporting periods include stock-based compensation and the deferred
tax asset valuation allowance.

Cash

The
Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased,
to be cash equivalents. The Company maintains cash and cash equivalent balances at two financial institutions that are insured by the
Federal Deposit Insurance Corporation (“FDIC”). The Company’s account at these institutions are insured by the FDIC
up to $250,000.
On December 31, 2024, the Company had cash in excess of FDIC limits of approximately $2.3
million. To reduce its risk associated with the
failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds
deposits.

Stock-based
compensation

The
Company accounts for stock-based compensation under the provisions of FASB ASC 718, “Compensation - Stock Compensation”,
which requires the measurement and recognition of compensation expense for all stock-based awards made to employees, directors and