Company: MIRA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024077
Chunk: 1

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 1
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 to or greater than that of MIRA.

Following
the completion of the independent valuation process and a unanimous recommendation by our Board of Directors, we announced on May 8,
2025, our intent to proceed with the transaction. On July 29, 2025, we filed a preliminary proxy statement (PRE 14A) with the SEC. The
shareholder vote to approve the Merger is scheduled to take place at our Annual Meeting on September 11, 2025.

Basis
of presentation

The
accompanying unaudited condensed financial statements include the accounts of the Company and have been prepared in accordance with accounting
principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Quarterly
Report on Form 10-Q, and Regulation S-X. These financial statements do not include all information and notes required by GAAP for annual
financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes
to the financial statements included in our Form 10-K for the year ended December 31, 2024. In the opinion of management, all adjustments,
consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included.
Operating results for the periods presented are not necessarily indicative of expected results for the full year. Additionally, certain
prior period amounts have been reclassified to conform to current period presentation in the accompanying unaudited condensed consolidated
financial statements.

    5

MIRA
PHARMACEUTICALS, INC.

NOTES
TO CONDENSED FINANCIAL STATEMENTS

FOR
THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

Research
and development expenses

Research
and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract
research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs,
including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in
which they are incurred.

General
and administrative expenses

General
and administrative expenses are primarily comprised of personnel costs, marketing expenses, amortization, insurance expenses, professional
services fees, travel and office expenses, and stock-based compensation

Use
of estimates

The
preparation of financial statements in accordance with GAAP requires the Company’s management