Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 416

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 416
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 event, if applicable. In addition, we agreed to pay
CWRU for each licensed product used in veterinarian applications (i) a tiered royalty on net sales beginning in the low single digits
and (ii) a declining percentage of all non-royalty sublicensing income based on the escalating stage of development upon a sublicensing
event, if applicable.

In addition, we are responsible for the reimbursement
of all past, current and future patent fees incurred by CWRU under the License Agreement. During the years ended December 31, 2024 and
2023, we incurred $0 and $42,467, respectively, in patent legal fees associated with the License Agreement, which amounts are included
in general and administrative expenses in the accompanying consolidated statements of operations.

Due to our limited cash position, we did not pay amounts
owed to CWRU and on March 22, 2024, we received a notice of termination from CWRU to terminate the License Agreement effective on the
notice date. As of December 31, 2024 and 2023, we have accrued $406,973 in accrued patent fees under the License Agreement.

License Agreements with University of California
San Diego (“UC San Diego”)

During July 2021, we licensed the exclusive rights
from UC San Diego to develop and commercialize technology that involves the loading of immuno-stimulatory molecules into plant virus protein
nanoparticles. These plant virus protein nanoparticles can be loaded with other TLR agonists to further tailor specific immune response
parameters. Under the licensing agreement, we are obligated to pay (i) a nominal upfront license access fee, (ii) all patent costs incurred
prior to the effective date of the license agreement, (iii) annual license maintenance fees beginning on the second anniversary date of
the agreement, (iv) aggregate future milestone payments based on potential clinical development and regulatory milestones of up to $165,000
through Phase III development plus additional milestones upon regulatory approval in the U.S. and other countries, (v) potential sales
milestones upon achieving certain sales levels, and (vi) a low single digit royalty on net sales and/or a percentage of sublicense income.

     F-16 

    Mosaic ImmunoEngineering, Inc.

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

During September 2021, we licensed the exclusive rights
to develop and commercialize