Company: CPMV
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001683168-25-006318
Chunk: 21

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 if earned. Pursuant to the Binding Term Sheet, we and Oncotelic agreed to negotiate in good
faith towards the execution of a definitive agreement and the closing of the transaction, which is subject to customary due diligence
and other conditions, including obtaining shareholder approval for the transaction and receiving waivers from our holders of Convertible
Notes representing at least 90% of the principal amount outstanding from any payment that would become due and payable upon a corporate
transaction as contemplated under the Binding Term Sheet. The Binding Term Sheet expired on June 30, 2025.

 17 

On November 18, 2024, we entered into an unsecured
convertible promissory note (“Note Purchase Agreement”) with an accredited investor (“Investor”) for proceeds
of up to $200,000 to be used for general corporate purposes. On December 4, 2024, the Company received $200,000 under the note purchase
agreement and issued an unsecured convertible note bearing interest at a rate of 5% per annum that is due and payable upon closing a financing
of at least $10.0 million or convertible into shares of common stock of the Company, at the sole discretion of the accredited investor.
The number of shares of common stock to be issued, if converted, would be equal to the unpaid principal amount and accrued and unpaid
interest thereon divided by the closing price of our common stock on the date that is one day prior to such election.

Critical Accounting Policies
and Estimates 

Our unaudited condensed consolidated financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America, which require us to make
estimates and judgments that significantly affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure
of contingent assets and liabilities. Actual results could differ from those estimates, and such differences could affect the results
of operations reported in future periods. During the six months ended June 30, 2025, there have been no material changes to the Company’s
significant accounting policies as compared to the significant accounting policies disclosed in Note 2 – Summary of Significant
Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Results of Operation

Three Months Ended June 30, 2025 and 2024:

Research and Development Expenses

Research and development expenses of approximately
$16,000 for the three months ended June 30, 2025 are