Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1396

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 1396
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 sublicense the licensed intellectual property. The Company and MIRALOGX have the same founder, who is also our largest
shareholder and thus MIRALOGX is considered a related party.

Pursuant
to the terms of the License Agreement, and subject to the conditions set forth therein, the Company paid MIRALOGX a one-time, nonrefundable
payment of $0.1 million upon the signing of the Agreement and will be obligated to pay quarterly royalty payments on sales of the Product
in the Territory of 8% of net sales and 8% of other revenue (such as milestone or sublicense payments) from licensed products.

Also,
in consideration of License Agreement, the Company issued to MIRALOGX a Common stock purchase warrant to purchase up to 700,000 shares
of the Company’s common stock (the “MIRALOGX Warrants”). The MIRALOGX Warrants are exercisable, in whole or in part,
any time prior to November 15, 2028 at a cash exercise price of $2.00 per share.

The
Company and MIRALOGX have made customary representations and warranties in the License Agreement and have agreed to certain other customary
covenants, including confidentiality, cooperation, and indemnity provisions. Either party may terminate the License Agreement for cause
if the other party materially breaches or defaults in the performance of its obligations, and, if curable, such material breach remains
uncured for 120 days. Unless earlier terminated, the License Agreement will continue in effect until the last to expire of the patent
rights (the “Term”), unless earlier terminated.

    F-12

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

Note
4. Debt, related party:

MIRALOGX

On
November 15, 2023, the Company entered into a Promissory Note and Loan Agreement (the “Loan Agreement”) with MIRALOGX.

Pursuant
to the Loan Agreement, the Company could borrow up to $3.0 million from MIRALOGX to fund the development of licensed products under the
License Agreement (the “Loan”).

The
Loan Agreement had a one-year term, and all outstanding principal and accrued but unpaid interest had to be repaid in full on November
15, 2024. However