Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 116

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 9B
Chunk 116
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 with the 2023 Private Placement that currently have an indeterminable contractual term. See disclosures below for more information
on these warrants

(2)The warrants herein
consist of various contractual terms. The warrants herein consist of 2,429,025 warrants issued to Bay Shore Trust that have a remaining
contractual term of 3.5 years as of December 31, 2024, 335,032 warrants issued to investors associated with the 2023 Private Placement
that currently have an indeterminable contractual term, and 50,000 warrants issued to underwriters as part of the IPO with a remaining
contractual life of 3.2 years. See disclosures below for more information on these warrants

Private
placement Warrants

During
the year ended December 31, 2023, the Company issued to the 2023 Private Placement investors a Common Stock warrant the right to purchase
up to 268,025 shares of common stock at an exercise price of $15.42 per share. The Company also issued to the placement agent a Common
Stock warrant the right to purchase up to 67,007 shares of common stock at an exercise price of $3.73 per share. Both issuances of warrants
are immediately vested and will be exercisable any time until the day that is one year plus ninety days from the date an IND filing is
made with the FDA.

Bay
Shore Trust Warrants (Note 4)

In
consideration of the line of credit provided by the Bay Shore Trust, the Company issued to the Bay Shore Trust a common stock
purchase warrant on June 15, 2023 giving the Bay Shore Trust the right to purchase up to 2,439,025 shares
of common stock at an exercise price of $3.73 per
share. This warrant will expire five
years after the date of grant.. The fair value of the warrants were estimated on the grant date using the Black-Scholes
valuation model and level 3 inputs based on assumptions for expected volatility, expected dividends, expected term, and the
risk-free interest rate, which resulted in $5.95 million
of deferred financing costs. This cost was recorded as deferred financing costs and additional paid in capital on the accompanying
balance sheet and is amortized straight-line over the term of the line of credit (which is 24 months). Associated amortization of
deferred finance costs is recorded to interest expense on the income statement of operations. The