Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 1522

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 14
Chunk 1522
---
(1,291)
  
    Total
    net deferred tax asset 
    $-  
     - 

Beginning
in 2022, in accordance with Internal Revenue Code Section 174, Qualified Research Expenditures are capitalized for tax purposes and amortized
over a period of five years. Accordingly, for income tax purposes, and as of December 31, 2024 and December 31, 2023, the Company has
recorded a deferred tax asset totaling approximately $1.2 million and $0.5 million, respectively, related to the timing difference between
GAAP and Tax recognition of these expenditures.

The
components of the provision for income taxes consist of the following:

Schedule of Components of Income Tax Provision 

    2024  
    2023 

    December
    31, 

    2024  
    2023 
  
    Deferred
    tax: 

    Deferred 
     (3,311,252) 
     (1,829,030)
  
    Change
    in valuation allowance 
     3,311,252  
     1,829,030 
  
    Total
    deferred 
     -  
     - 
  
    Total
    provision for income taxes 
    $-  
    $- 

ASC
Topic 740 requires that a deferred tax amount be reduced by a valuation allowance if, based on the weight of available evidence it is
more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized. The valuation
allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. The Company
has recorded a full valuation allowance against its deferred tax assets generated by net operating loss carryforwards as it has determined
that such amounts may not be recognizable, given the historical losses of the Company to date. As of December 31, 2024, the Company has
a cumulative federal net operating loss carryforward of approximately $18.0 million. The net operating loss carryforwards have no expiration
date.

    F-15

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

A
reconciliation of the statutory U.S. federal income tax rate to the Company’s