Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 133

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 133
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Plan, as amended and restated in August 2023, (“2022 Omnibus Plan”). The 2022 Omnibus Plan authorizes the grant of incentive
stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any of its parent
and subsidiary corporations’ employees, and for the grant of non-statutory stock options, restricted stock, restricted stock units,
stock appreciation rights, performance units and performance shares to the Company’s employees, directors, and consultants and
any of its future subsidiary corporations’ employees and consultants. On September 12, 2024, the Company held its 2024 Annual Meeting
of Stockholders (the “Annual Meeting”) in which it was voted upon to increase the shares provided under the plan from 2,000,000
shares to 5,000,000 shares as summarized below.

The
2022 Omnibus Plan provides that 5,000,000 shares of the Company’s Common Stock are reserved for issuance under the 2022 Omnibus
Plan, all of which may be issued pursuant to the exercise of incentive stock options.

Stock-based
compensation

The
fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected
volatility, expected dividends, expected term, and the risk-free interest rate. Expected price volatility is based on the historical
volatilities of a peer group as the Company does not have a trading history for its shares prior to its IPO. Industry peers consist of
several public companies in the biotech industry similar to the Company in size, stage of life cycle and product indications. The Company
intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical
information regarding the volatility of the Company’s own stock price becomes available, or unless circumstances change such that
the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly
available would be utilized in the calculation.

Expected
term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of
the vesting term plus contract term. The risk-free rate is based on the 5-year U.S. Treasury yield curve in effect at the time of grant.
The Company recognizes forfeitures as they occur.

During
the year ended December 31, 2024, a total of 3,599