Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
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Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
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NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Unaudited)

Note
1. Description of business and summary of significant accounting policies:

Overview

MIRA
Pharmaceuticals, Inc. (NASDAQ: MIRA) is a clinical-stage pharmaceutical development company advancing two neuroscience programs targeting
neurologic and neuropsychiatric disorders. The company holds exclusive rights in the U.S., Canada, and Mexico for Ketamir-2 and MIRA-55,
two novel drug candidates designed to address unmet medical needs in pain management, depression, PTSD and cognitive function.

The
U.S. Drug Enforcement Administration (DEA)’s scientific review of Ketamir-2 and MIRA-55 concluded that it would not be considered
a controlled substance or listed chemical under the Controlled Substances Act (CSA) and its governing regulations.

As
used herein, the Company’s Common Stock, par value $0.0001 per share, is referred to as the “Common Stock” and
the Company’s preferred stock, par value $0.0001 per share, is referred to as the “Preferred Stock”.  

Operating
updates

Acquisition
letter of intent

On
March 19, 2025, we entered into a binding letter of intent (the “LOI”)
with SKNY Pharmaceuticals, Inc. (“SKNY”), a privately held Delaware corporation, to acquire SKNY through a stock exchange
transaction (the “Acquisition”). The Acquisition will bring SKNY-1, a novel oral drug candidate targeting weight loss and
smoking cessation-two of the leading causes of preventable death-into MIRA’s development pipeline. Under the LOI, SKNY
will provide a $5 million capital infusion in cash or cash equivalents, further strengthening MIRA’s financial position and
supporting future growth initiatives.

SKNY
holds exclusive rights to its compounds in the United States, Canada, and Mexico which is license from Miralogx, a related party of the
Company. Under the terms of the LOI, SKNY will merge into us through a stock exchange, with each outstanding share of SKNY’s
common stock being exchanged for shares of our common stock. The exact exchange ratio will be determined by an independent third-party
valuation firm (the “Independent Valuator”) based on the relative values of both companies. The completion of the Acquisition