Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
Chunk: 6

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 6
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yclopentan-1-one as an active agent in the United States, Canada and Mexico (the “Territory”). The exclusive license in
the License Agreement includes the right of the Company to sublicense the licensed intellectual property. The Company and MIRALOGX have
the same founder, who is also our largest shareholder and thus MIRALOGX is considered a related party.

Pursuant
to the terms of the License Agreement, and subject to the conditions set forth therein, the Company paid MIRALOGX a one-time, nonrefundable
payment of $0.1 million upon the signing of the Agreement and will be obligated to pay quarterly royalty payments on sales of the Ketamir-2
in the Territory of 8% of net sales and 8% of other revenue (such as milestone or sublicense payments) from licensed products.

Also,
in consideration of the License Agreement, the Company issued to MIRALOGX a Common Stock Purchase Warrant to purchase up to 700,000 shares
of the Company’s common stock (the “MIRALOGX Warrant”). The MIRALOGX Warrant is exercisable, in whole or in part, any
time prior to November 15, 2028 at a cash exercise price of $2.00 per share.

     8 

MIRA PHARMACEUTICALS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Unaudited)

The
Company and MIRALOGX have made customary representations and warranties in the License Agreement and have agreed to certain other customary
covenants, including confidentiality, cooperation, and indemnity provisions. Either party may terminate the License Agreement for cause
if the other party materially breaches or defaults in the performance of its obligations, and, if curable, such material breach remains
uncured for 120 days. Unless earlier terminated, the License Agreement will continue in effect until the last to expire of the patent
rights licensed pursuant to the License Agreement, unless earlier terminated.

Note
4. Related party transactions:

Due
from related parties – Amounts due from MIRALOGX as of March 31, 2025 and December 31, 2024, which are presented as a related
party receivable, in the accompanying condensed balance sheets, totalled $0.04 million. These aforementioned amounts are composed