Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
Chunk: 19

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 19
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 including potential alliances and drug product
collaborations; however, none of these alternatives are committed at this time. There can be no assurance that we will be successful
in obtaining sufficient funding on terms acceptable to us to fund continuing operations, if at all, identify and enter into any strategic
transactions that will provide the capital that we will require or achieve the other strategies to alleviate the conditions that raise
substantial doubt about our ability to continue as a going concern. If none of these alternatives are available, or if they are not available
on satisfactory terms, we will not have sufficient cash resources and liquidity to fund our business operations. The failure to obtain
sufficient capital on acceptable terms when needed may require us to delay, limit, or eliminate the development of business opportunities
and our ability to achieve our business objectives and our competitiveness, and our business, financial condition, and results of operations
will be materially adversely affected, or, in the worst case scenario, we could be forced to cease operations and dissolve. In addition,
the perception that we may not be able to continue as a going concern may cause others to choose not to deal with us due to concerns
about its ability to meet our contractual obligations.

We
did not have any material non-cancellable contractual obligations as of March 31, 2025.

Cash
Flows

The
following table provides information regarding our cash flows for the periods presented:

    Three months Ended March 31, 

    2025  
    2024 
  
    Net cash flows from: 

    Operating activities 
    $(1,630,027) 
    $(1,049,536)
  
    Financing activities 
     3,381  
     (24,335)
  
    Net change in cash 
    $(1,626,646) 
    $(1,073,871)

Net
Cash Flows from Operating Activities

The
cash used in operating activities resulted primarily from our net losses, stock-based compensation expense, changes in prepaid expenses
and changes in components of accounts payable and accrued expenses.

For
the three months ended March 31, 2025, operating activities used $1.6 million of cash. This was primarily driven by a net loss of $1.8
million and $0.7 million used to pay down accounts payable and prepaid expenses. These outflows were partially offset by $0.8 million
in stock-based compensation expense. Accounts payable, as well as accrued and prepaid expenses, primarily