Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 993

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9
Chunk 993
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    $-  
    $- 

ASC
Topic 740 requires that a deferred tax amount be reduced by a valuation allowance if, based on the weight of available evidence it is
more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized. The valuation
allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. The Company
has recorded a full valuation allowance against its deferred tax assets generated by net operating loss carryforwards as it has determined
that such amounts may not be recognizable, given the historical losses of the Company to date. As of December 31, 2024, the Company has
a cumulative federal net operating loss carryforward of approximately $18.0 million. The net operating loss carryforwards have no expiration
date.

    F-15

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

A
reconciliation of the statutory U.S. federal income tax rate to the Company’s effective income tax rate is as follows:

 Schedule
of Reconciliation of Effective Income Tax Rate

    Year
    Ended December 31, 2024 

    Amount  
    Rate 
  
    Book
    Loss 
    $7,852,659  

    Tax
    Benefit at U.S. Federal Statutory Rate 
     (1,649,058) 
     21.00%
  
    State
    Taxes, Net of Federal Benefit 
     (341,591) 
     4.35%
  
    Change
    in Valuation Allowance 
     3,311,262  
     (42.17)%
  
    Permanent
    Items 
     (1,320,612) 
     16.82%
  
    Net
    actual effective rate 
    $-  
     -%

Note
8. Stockholders’ equity:

Capital
stock

The
Company has the authority to issue 110,000,000 shares of capital stock, consisting of 100,000,000 shares of Common Stock and 10,000,000
shares of undesignated preferred stock (as amended and restated on June 28, 2023), whose rights and privileges will be defined by the
Board of Directors