Company: TELO
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010298
Chunk: 2

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 2
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 and the deferred tax asset valuation allowance.

Cash and cash equivalents

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 balances at two financial institutions that are insured by the Federal
Deposit Insurance Corporation (“FDIC”). The Company’s account at these institutions is insured by the FDIC up to
$250,000.
On March 31, 2025, the Company had cash in excess of FDIC limits of approximately $0.2 million.
Any material loss that the Company may experience in the future could have an adverse effect on its ability to pay its operational
expenses or make other payments and may require the Company to move its cash to other high quality financial institutions. The
Company deems these institutions to be of high caliber and, to date, has not experienced any losses related to these holdings.

    7

TELOMIR
PHARMACEUTICALS, INC.

NOTES
TO CONDENSED FINANCIAL STATEMENTS

FOR
THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Unaudited)

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 consultants
based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using
the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the
requisite service periods using the straight-line method. The Company has elected to account for forfeiture of stock-based awards as
they occur.

Fair
value measurements and financial instruments

The
Company measures the fair value of financial instruments in accordance with GAAP which defines fair value, establishes a framework for
measuring fair value, and expands disclosures about fair value measurements.

GAAP
defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
GAAP also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs