Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 364

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 364
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 owned subsidiaries of Patriot Scientific
Corporation (“PTSC”) merged with and into Private Mosaic, with Private Mosaic surviving as wholly owned subsidiary of PTSC
(the “Reverse Merger”). The transaction closed on August 21, 2020 (“Closing Date”) in accordance with the terms
of the Stock Purchase Agreement.

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On the Closing Date, Patriot Scientific Corporation
acquired 100% of the issued and outstanding common stock of Private Mosaic, representing 630,000 shares of its Class A common stock (“Class
A Stock”) and 70,000 shares of its Class B common stock (“Class B Stock”) (collectively referred to as “Target
Common Stock”). In exchange for the Target Common Stock, the holders of the Class A Stock received 630,000 shares of the Company’s
Series A Convertible Voting Preferred Stock (“Series A Preferred”) and holders of the Class B Stock received 70,000 shares
of the Company’s Series B Convertible Voting Preferred Stock (“Series B Preferred”). Each share of Series A Preferred
converted into 10.194106 shares of common stock as defined in the Series A Certificate of Designation. Each share of Series B Preferred
converts into 11.46837 shares of common stock of the Company, possesses full voting rights, on an as-converted basis, as the common stock
of the Company and contains certain anti-dilution rights, as defined in the Series B Certificate of Designation. On a fully diluted, as
converted basis, the holders of Series A Preferred and Series B Preferred, in aggregate, owned 90% of the issued and outstanding common
stock of the Company as of the Closing Date.

The Reverse Merger was treated by the Company as a
reverse merger in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
For accounting purposes, Private Mosaic was considered to have acquired PTSC as the accounting acquirer because: (i) Private Mosaic
stockholders owned 90% of the combined company, on an as-converted basis, immediately following the Closing Date, (ii) Private Mosaic
directors held a majority of board seats in the combined company and (iii) Private Mosaic management held all key positions in the
management of the combined company. Accordingly, Private Mosaic’s historical results of operations replaced PTSC’s historical
results of operations for all periods prior to the Closing Date of the Reverse Merger and