Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1240

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 10
Chunk 1240
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,499,236  
    $2.39  
     412,142 

Item
13. Certain Relationships and Related Transactions, and Director Independence.

The
following is a description of transactions within the last two years to which we have been a party, in which the amount involved exceeded
or will exceed $120,000, and in which any of our executive officers, directors or holders of more than 5% of our voting securities, or
an immediate family member thereof, had or will have a direct or indirect material interest. We believe the terms obtained or consideration
that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or amounts
that would be paid or received, as applicable, in arm’s-length transactions with unrelated third parties.

82

Line
of Credit and Promissory Note with the Bay Shore Trust

On
April 28, 2023, we entered into the Bay Shore Note with the Bay Shore Trust, under which we have the right to borrow up to an aggregate
of $5,000,000 from the Bay Shore Trust at any time up to the second anniversary of the issuance of the Bay Shore Note or, if earlier,
upon the completion of our initial public offering. Our right to borrow funds under the Bay Shore Note is subject to the absence of a
material adverse change in our assets, operations, or prospects. The Bay Share Note, together with accrued interest, will become due
and payable on the second anniversary of the issuance of the note, provided that it may be prepaid at any time without penalty. The Bay
Shore Note will accrue interest at a rate equal 7% per annum, simple interest, during the first year that the note is outstanding and
10% per annum, simple interest, thereafter. The Bay Shore Note is unsecured. As of June 30, 2023, the Bay Shore Note had an outstanding
principal balance of $1.8 million and accrued and unpaid interest of $0.04 million. Under the Bay Shore Trust Conversion Agreement, the
Bay Shore Trust agreed to convert, upon the completion of our initial public offering, $1,100,190 of the outstanding principal balance
of the Bay Shore Note into shares of our common stock at a conversion price equal to our initial public offering price, which resulted
in the issuance of 157,170 shares to the Bay Shore Trust upon the completion of our initial public offering. The note was paid off as