Company: CPMV
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001683168-25-006318
Chunk: 13

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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,000 shares of common stock, par value $0.00001 per share, and 5,000,000 shares of preferred stock, par value $0.00001 per share
(“Preferred Stock”). We designated 630,000 shares of Series A Convertible Voting Preferred Stock (“Series A Preferred”)
and designated and issued 70,000 shares of Series B Convertible Voting Preferred Stock (“Series B Preferred”). As of June
30, 2025 and December 31, 2024, there are no shares of Series A Preferred outstanding and 70,000 shares of Series B Preferred outstanding.

Series B Preferred

On August 21, 2020, the Company issued 70,000 shares
of Series B Preferred (classified as permanent equity), in exchange for 70,000 shares of Class B Common Stock in connection with the reverse
merger in August 2020. Each share of Series B Preferred has a par value of $0.00001 per share, no dividend rate, a stated value of $6.50
per share, and each share of Series B Preferred initially converts into 11.46837 shares of common stock of the Company (“Series
B Conversion Number”). In addition, the Series B Preferred possesses full voting rights, on an as-converted basis, as the common
stock of the Company, as defined in the Series B Certificate of Designation. Furthermore, the Series B Preferred does not have any mandatory
conversion rights and only converts upon written notice from the holder.

The Series B Preferred also includes certain anti-dilution
rights (“anti-dilution issuance rights”), whereby the holder of Series B Preferred will continue to maintain ownership equal
to 10% of the fully diluted shares of common stock outstanding, including for such purposes all other convertible securities outstanding
and reserved for issuance except equity awards issued and outstanding and reserved for issuance under a board approved equity compensation
plan reserving for issuance no more than ten percent (10%) of the outstanding common stock of the Company then outstanding, until the
Capital Threshold is met. The anti-dilution issuance rights meet the definition of a derivative instrument under FASB’s ASC Topic
815. As of December 31, 2023, the $1 million dollar Capital Threshold was achieved and therefore, there is no remaining derivative liability.

In the event of any Liquidation Event, the Holders
of Series B Preferred shall be entitled to receive, prior and in preference to any distribution of any of the assets