Company: CPMV
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001683168-25-006318
Chunk: 12

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 shares equal to the quotient obtained by dividing (i) the outstanding principal balance and unpaid
accrued interest of such Convertible Note on the date of conversion by (ii) the May or February Conversion Price, as applicable.

Pursuant to ASC Topic 835-30, “Imputation of
Interest”, the Convertible Notes were initially recorded at their amortized cost of $916,632 and are being accreted to their redemption
value of $1,145,790 (“Redemption Value”) over the estimated conversion period ending June 30, 2025 using the effective interest
method. During the three six months ended June 30, 2024, the Company recorded $0 and $1,446, respectively, in accretion to redemption
value on the Convertible Notes. The Convertible Notes have been accreted to their full Redemption Value as of March 31, 2024.

     11 

    7.
    Note Payable

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. During the three
and six months ended June 30, 2025, the Company recorded interest expense on the note payable of $2,493 and $4,959, respectively. As of
June 30, 2025 and December 31, 2024, the Company has accrued $5,699 and $740, respectively, in interest that is included in other accrued
expenses within the accompanying unaudited condensed consolidated balance sheet.

    8.
    Stockholders’ Equity and Share-Based Compensation

Stockholders’ Equity (Deficit)

The Company’s authorized capital consists of
100,000