Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 16

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 16
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this Report do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of
liabilities that might be necessary should the Company be unable to continue as a going concern.

 9 

We entered into a binding term sheet with Oncotelic
Therapeutics, Inc. to acquire rights to certain technologies of Oncotelic and we may not enter into a definitive agreement if certain
conditions are not met. 

In order to establish a new product pipeline, on April
26, 2024, we entered into a binding term sheet (“Binding Term Sheet”) with Oncotelic Therapeutics, Inc.(“Oncotelic”)
pursuant to which we intend to acquire (i) certain rights to Oncotelic’s clinical stage necroptosis cancer therapies associated
with its vascular disruptive agents (“VDAs”) and related regulatory and clinical packages, and (ii) non-exclusive access to
its proprietary Artificial Intelligence (“AI”) technologies for identifying immunotherapy combinations, in exchange for shares
of our common stock valued at $15.0 million upon execution of the definitive agreement, or a combination of common stock and preferred
stock to be determined by the parties, along with additional milestones allowing Oncotelic to earn up to an additional $15.0 million in
shares of common stock that would be valued at the time of issuance, if earned. Pursuant to the Binding Term Sheet, we and Oncotelic agreed
to negotiate in good faith towards the execution of a definitive agreement and the closing of the transaction, which is subject to customary
due diligence and other conditions, including obtaining shareholder approval for the transaction and receiving waivers from our holders
of Convertible Notes representing at least 90% of the principal amount outstanding from any payment that would become due and payable
upon a corporate transaction (see Notes 7 and 13 to the accompanying consolidated financial statements) as contemplated under the Binding
Term Sheet.

In addition, under the Binding Term Sheet, (i) we
will continue the development work necessary to achieve the mutually agreed upon milestones upon the requisite funding, (ii) Oncotelic
will provide a loan to us to cover certain operational costs of the Company initially through June 2024 of up to $70,000 which was fully
funded, (iii) Oncotelic will assist the Company in potentially raising initial funding of $2 million to support the technologies, and
(iv) in the event the Company is unable to raise the requisite funding, then the transaction