Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 700

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 700
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”) have no stated maturity date; bear interest at a simple rate equal to eight percent (8.0%) per annum
until converted; and automatically convert into the same equity securities issued for cash in the Qualified Financing (as described below),
or at the option of the holder, into the same equity securities issued for cash in a Smaller Financing (as described below). Interest
on the Convertible Notes is accreted and added to the unpaid principal balance prior to conversion of the Convertible Notes. During the
years ended December 31, 2024 and 2023, the Company recorded non-cash interest expense on the Convertible Notes in the amount of $73,533
and $73,333, respectively.

     F-17 

    Mosaic ImmunoEngineering, Inc.

    Notes to Consolidated Financial Statements
    For the Years Ended December 31, 2024 and 2023 (continued)

The Convertible Notes will convert into the same equity
securities offered in the Qualified Financing or Smaller Financing (“Conversion Shares”), as described below, at a conversion
price equal to the lower of (i) the product equal to 80% times the lowest per unit purchase price of the equity securities issued for
cash in the Qualified Financing or Smaller Financing, or (ii) $2.377 for the May Convertible Notes (“May Conversion Price”)
or $1.00 for the February Convertible Notes (“February Conversion Price”). Pursuant to the February Note Agreement, for each
holder of the May Convertible Notes that purchased a February Convertible Note in the amount of (a) $50,000 or (b) an amount equivalent
to the principal amount of their May Convertible Note, the conversion price of the May Convertible Notes was adjusted to the February
Conversion Price. As of December 31, 2024, the principal amount of Convertible Notes that may be converted at the February Conversion
Price was $866,632. In addition, the conversion price may be reduced or increased proportionately as a result of stock splits, stock dividends,
recapitalizations, reorganizations, and similar transactions. Upon any conversion of the Convertible Notes in connection with a Qualified
Financing or a Smaller Financing, as applicable, the Convertible Notes shall convert immediately prior to the closing thereof, such that
the investors paying cash in such Qualified Financing or Smaller Financing, as applicable, are not diluted by the conversion of the Convertible
Notes.