Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 377

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 1
Chunk 377
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 Williams, Sr., and under which various of his family members are beneficiaries (the “Bay Shore Trust”). Under this Promissory
Note and Loan Agreement (the “Bay Shore Note”), we have the right to borrow up to an aggregate of $5,000,000 from the Bay
Shore Trust at any time up to the second anniversary of the issuance of the Bay Shore Note or, if earlier, upon the completion of our
initial public offering. Our right to borrow funds under the Bay Shore Note is subject to the absence of a material adverse change in
our assets, operations, or prospects. The Bay Share Note, together with accrued interest, will become due and payable on the second anniversary
of the issuance of the note, provided that it may be prepaid at any time without penalty. The Bay Shore Note will accrue interest at
a rate equal to 7% per annum, simple interest, during the first year that the note is 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.

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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 Cod