Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 338

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 338
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 an “ownership change” as defined by Section
382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more
than 50 percentage points of the outstanding stock of a Company by certain stockholders. Moreover, since we will need to raise substantial
additional funding to finance our operations, we may undergo further ownership changes in the future, which could further limit our ability
to use net operating loss carryforwards. As a result, if we generate taxable income, our ability to use some of our net operating loss
carryforwards to offset U.S. federal taxable income may be subject to limitations, which could result in increased future tax liability
to us.

With the exception of refundable income taxes, we
have determined that it was more likely than not that all of our deferred tax assets will not be realized in the future due to our continuing
pre-tax and taxable losses in addition to the potential loss of deferred tax assets as a result of the reverse merger that closed in August
2020. As a result of this determination, we have recorded a full valuation allowance against our deferred tax assets.

Recently Adopted Accounting Standards

In August 2020, the FASB issued Accounting Standards
Updates (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging
— Contracts in Entity’s Own Equity (Subtopic 815-40). The guidance simplifies the accounting for certain financial instruments,
eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments,
and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity.
It also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s
own equity and amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible
instruments. The guidance is effective for public business entities that meet the definition of a Securities and Exchange Commission filer,
excluding entities eligible to be smaller reporting companies as defined by the Securities and Exchange Commission, for fiscal years beginning
after December 15, 2021, including interim periods within those fiscal years. For all other entities, the guidance is effective for fiscal
years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier
than fiscal years