Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 569

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 1B
Chunk 569
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 outstanding and 10% per annum, simple interest,
thereafter. The Bay Shore Note is unsecured. As of November 30, 2023, the total amount outstanding under the Bay Shore Note was $1.4
million. The total amount outstanding was converted into 674,637 shares of our common stock on November 30, 2023 at a conversion rate
of $2.05 per share (after giving effect to our 1-for-2.05 reverse stock split that occurred on December 11, 2023) pursuant to a conversion
agreement that resulted in a loss of $3.3 million for the year ended December 31, 2023 and a remaining balance as of December 31, 2023
of $0.1 million. Upon the effectiveness of the initial public offering on February 9, 2024, the agreement was terminated.

70

In
consideration of the loan facility provided by the Bay Shore Trust, we issued to the Bay Shore Trust a common stock purchase warrant
on June 15, 2023, giving the Bay Shore Trust the right to purchase up to 2,439,025 shares of common stock at an exercise price of $3.73
per share (after giving effect to our 1-for-2.05 reverse stock split that occurred on December 11, 2023), which warrant will expire five
years after the date of grant. Upon issuance, the warrant met the criteria to be classified as equity based on an analysis under Accounting
Standards Codification (480) ASC 480, “Distinguishing Liabilities from Equity” and will be measured at fair value,
resulting in an initial fair value of approximately $5.95 million upon issuance of the warrant using Black-Scholes valuation techniques.

Transactions
with MIRALOGX LLC

Since
January 1, 2023, MIRALOGX and The Starwood Trust, a separate Trust established by our founder, have advanced funds on behalf of Bay Shore
Trust to our company in order to fund operating activities. The total amount advanced and outstanding as of November 30, 2023, was $1.7
million. These advances were converted into 837,841 shares of our common stock on November 30, 2023 at a conversion rate of $2.05 per
share (after giving effect to our 1-for-2.05 reverse stock split that occurred on December 11,