Company: MIRA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024077
Chunk: 18

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 18
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the “Offering”).
Gross proceeds from the Offering totaled approximately $2.0 million, prior to deducting fees and expenses. The trades for the Offering
were facilitated through Rodman & Renshaw, via the StockBlock platform. The Offering did not include any warrants.

Critical
Accounting Estimates

Research
and development expenses

Research
and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract
research organizations and consultants, who conduct research and development activities on our behalf. Patent-related costs, including
registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in which they
are incurred.

Stock-based
compensation

We
account for stock-based compensation under the provisions of FASB ASC 718, “Compensation - Stock Compensation”, which requires
the measurement and recognition of compensation expense for all stock-based awards made to employees, directors and consultants based
on estimated fair values on the grant date. We estimate the fair value of stock-based awards on the date of grant using the Black-Scholes
model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service
periods using the straight-line method. We have elected to account for forfeiture of stock-based awards as they occur.

16

Results
of Operations

For
the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024

Research
and Development Expenses. We incurred $0.5 million in research and development expenses during the three months ended June 30, 2025,
and during the three months ended June 30, 2024, we incurred $0.6 million in research and development expenses. The decrease from 2024 to 2025 is primarily due to decreased costs for the
development of MIRA-55.

We
incurred $0.8 million in research and development expenses during the six months ended June 30, 2025, and during the six months ended
June 30, 2024, we incurred $1.4 million in research and development expenses. The decrease from 2024 to 2025 is primarily due to decreased
costs in for the development of MIRA-55.

General
and Administrative Expenses. We incurred $1.0 million and $1.1 million in general and administrative expenses during the