Company: MIRA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024077
Chunk: 32

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 2
Chunk 32
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4 million of cash. This was primarily driven by a net loss of $3.3 million and $0.5 million used to pay down accounts payable and
prepaid expenses. These outflows were partially offset by $1.4 million in stock-based compensation expense. Accounts payable, as well
as accrued and prepaid expenses, primarily related to research and development costs, consultant fees, and insurance expenses.

For
the six months ended June 30, 2024, operating activities used $1.9 million of cash from the ATM. This was primarily driven by a net loss of $3.4
million and $0.4 million used to pay down accounts payable and prepaid expenses. These outflows were partially offset by $1.1
million in stock-based compensation expense. Accounts payable, as well as accrued and prepaid expenses, primarily related to
research and development costs, consultant fees, and insurance expenses.

Net
Cash Flows from Financing Activities

For
the six months ended June 30, 2025, financing activities provided $0.3 million of cash, resulting from proceeds from sale of common stock
from the ATM, less offering costs.

For
the six months ended June 30, 2024, financing activities provided $0.1 million of cash, resulting primarily from $0.1
million in disgorgement proceeds.

18

Nasdaq
Listing Compliance Risk Due to Stockholders’ Equity Deficiency

We
have received a notice from Nasdaq indicating that we are not in compliance with its minimum stockholders’ equity requirement,
and there can be no assurance that we will be able to regain compliance or maintain our listing.

On
April 8, 2025, we received a notification from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, as of the filing of
our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, we were not in compliance with Nasdaq Listing Rule 5550(b)(1),
or the Rule, which requires listed companies to maintain a minimum of $2.5 million in stockholders’ equity. In accordance with
Nasdaq’s procedures, we submitted a plan to regain compliance.

Our
plan includes a number of steps intended to cure the deficiency, including the anticipated closing of a strategic merger with SKNY Pharmaceuticals,
Inc. in the third quarter of 2025, which we expect will add approximately $5 million in cash or other assets to our balance
sheet