Company: TELO
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023970
Chunk: 42

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 42
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TELOMIR
PHARMACEUTICALS, INC.

NOTES
TO CONDENSED FINANCIAL STATEMENTS

JUNE
30, 2025

(Unaudited)

On May 13, 2025, the Company’s
CFO was granted 50,000 options to purchase Common Stock with an aggregate fair market value of approximately $0.1 million. The options
have a term of 10 years from the grant date. These options vest as follows: 50% vest on the 6 month anniversary of the date of grant and
the remaining 50% vest on the 12 month anniversary of the date of grant.

On May 27, 2025, the Company’s
CEO was granted 2,000,000 options to purchase Common Stock with an aggregate fair market value of approximately $3.7 million. The options
have a term of 10 years from the grant date and were all vested as of the grant date.

The fair value of the options
granted in 2025 were estimated on the grant date using the Black-Sholes valuation method and level 3 inputs based on assumptions for
expected volatility, expected dividends, expected term and the risk-free interest rate which resulted in $3.8 million in option valuation during the quarter ending June 30, 2025.

Key assumptions used to value
warrants issued in the quarter are as follows:

Schedule
of key assumptions used to value warrants

    Expected
    price volatility range
    92.45%-138.97%

    Risk-free
    interest rate range
    4.08%-4.15%

    Fair
    Market Value of Underlying Common Stock range
    $1.87-$2.06

    Expected
    Term in Years range
    5-5.37 years

    Dividend yield
    -

Unrecognized
compensation expenses as of June 30, 2025 was
$0.23 million to be recognized through September 2026. The Company recognized approximately $6.0
million in stock-based compensation in the six months ended June 30, 2025.

Note
7. Segment Information

The
Company operates in one reportable segment related to the development and commercialization of pharmaceuticals targeting neurologic and
neuropsychiatric disorders. The CODM for the Company is the Chief Executive Officer (the “CEO”). The Company’s CEO
reviews operating results on an aggregate