Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 346

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 346
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3, we expensed $7,000 and $10,000, respectively, in aggregate associated with annual maintenance
fees under the two license agreements with UC San Diego, which amount is included in research and development expense in the accompanying
consolidated statements of operations. As of December 31, 2024 and 2023, we have accrued $40,900 and $33,900, respectively, in accrued
expenses under the license agreements with UC San Diego.

7.        Convertible Notes

On May 7, 2021, we entered into a convertible note
purchase agreement (“May Note Agreement”) with five (5) accredited investors, including three (3) members of our Board of
Directors (“Board”) that participated on the same terms as other accredited investors. Pursuant to the Note Agreement, we
received $525,003 in proceeds in addition to $49,997 in accrued payable to founder that was invested in convertible notes and the Company
issued unsecured convertible promissory notes (“May Convertible Notes”) in the aggregate principal amount of $575,000.

On February 18, 2022, we entered into additional convertible
note purchase agreements (“February Note Agreement”) with sixteen (16) accredited investors, including five (5) members of
our Board that participated on the same terms as other accredited investors. Pursuant to the February Note Agreement, we received $341,632
in proceeds and issued unsecured convertible promissory notes (“February Convertible Notes”) in the aggregate principal amount
of $341,632. The February Convertible Notes were issued as part of a convertible note offering authorized by the Company’s Board
(the “Convertible Notes Offering”) for raising up to $5 million from the issuance of convertible notes through June 30, 2022. 

The May and February Convertible Notes (collectively,
the “Convertible Notes”) have no stated maturity date; bear interest at a simple rate equal to eight percent (8.0%) per annum
until converted; and automatically convert into the same equity securities issued for cash in the Qualified Financing (as described below),
or at the option of the holder, into the same equity securities issued for cash in a Smaller Financing (as described below). Interest
on the Convertible Notes is accreted and added to the unpaid principal balance prior to conversion of the Convertible Notes. During the
years ended December 31, 2024 and 2023, the Company recorded non