Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
Chunk: 2

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 2
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 expenses

General
and administrative expenses are primarily comprised of personnel costs, marketing expenses, amortization, insurance expenses, professional
services fees, travel and office expenses, and stock-based compensation

Use
of estimates

The
preparation of financial statements in accordance with GAAP requires the Company’s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of expenses during the reporting period. Actual results may differ from such estimates
and such differences could be material. Significant estimates during the reporting periods include stock-based compensation and the deferred
tax asset valuation allowance.

Cash
and cash equivalents

The
Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased,
to be cash equivalents. The Company maintains cash and cash equivalent balances at two financial institutions that are insured by the
Federal Deposit Insurance Corporation (“FDIC”). The Company’s account at these institutions is insured by the FDIC
up to $250,000. On March 31, 2025, the Company had cash in excess of FDIC limits of approximately $1.0 million. Any material loss that the Company may experience in the future could have
an adverse effect on its ability to pay its operational expenses or make other payments and may require the Company to move its cash to
other high quality financial institutions. The Company deems these institutions to be of high caliber and, to date, has not experienced
any losses related to these holdings.

Stock-based
compensation

The
Company accounts for stock-based compensation under the provisions of FASB ASC 718, “Compensation - Stock Compensation”,
which requires the measurement and recognition of compensation expense for all stock-based awards made to employees, directors and consultants
based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using
the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the
requisite service periods using the straight-line method. The Company has elected to account for forfeiture of stock-based awards as
they occur.

     6 

MIRA PHARMACEUTICALS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Unaud