Company: TELO
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010298
Chunk: 29

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 29
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 any related party travel costs during the three months ended March 31, 2025. We incurred $0.4 million during the same period
ended March 31, 2024 in connection with the lease of and use of an airplane with an entity under common control. The
Company will not participate in the use of the airplane after March of 2024 and, pursuant to the terms of the agreement, constitutes
no further obligation under the agreement.

Interest
income (expense). We earned $0.01 million in interest income during the three months ended March 31, 2025 relating primarily to money
market interest. We incurred $4.3 million in interest expense during the three months ended March 31, 2024. The 2024 interest expense
consists of the amortization of the deferred financing costs on warrants issued on the related party line of credit that is no longer
open.

Liquidity
and Capital Resources

Sources
of Liquidity

Since
the Company’s inception in August 2021, we have financed our operations primarily through an unsecured line of credit with a major
shareholder and an affiliated company, through a $1.0 million private placement of shares of our common stock that occurred during the
first quarter 2023 at $3.73 per share (after giving effect to our 1-for-2.05 reverse stock split that occurred on December 11, 2023),
and through our IPO that occurred in February 2024. We intend to finance our clinical development programs and working capital needs
from existing cash, and our effective shelf registration statement.

On
September 24, 2024 the Company entered into an unsecured Promissory Note and Loan Agreement (“the Starwood Note”) with the
Starwood Trust, a separate related party trust established by the Company’s founder for the benefit of the founder’s family.
Under the Starwood Note, the Company has the right to borrow up to an aggregate of $5 million from the Starwood Trust at any time up
until the second anniversary of the note. The Company’s right to borrow funds under the Starwood Note is subject to the absence
of a material adverse change in its assets, operations, or prospects. The Starwood Note, together with accrued interest, is to become
due and payable on the second anniversary of the issuance of the note, provides for prepayment at any time without penalty, and accrues
simple interest at a rate equal 7% per annum