Company: TELO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021496
Chunk: 7

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 7
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 Standards Board Accounting Standard Codification
718 (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.

    7

Fair
value measurements and financial instruments

The
Company measures the fair value of financial instruments in accordance with GAAP which defines fair value, establishes a framework for
measuring fair value, and expands disclosures about fair value measurements.

GAAP
defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
GAAP also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. The Company considers the carrying amount of deferred offering costs to approximate
fair value due to short-term nature of this instrument. GAAP describes three levels of inputs that may be used to measure fair value:

Level
1 - quoted prices in active markets for identical assets or liabilities.

Level
2 - quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level
3 - inputs that are unobservable (for example cash flow modeling inputs based on assumptions).

Earnings
(loss) per Share

Earnings
(loss) per share is computed in accordance with ASC Topic 260, “Earnings per Share”. The basic weighted average number of
shares of common stock outstanding excludes common stock equivalents such as stock options and warrants, while diluted weighted average
number of shares outstanding includes such stock options and warrants. During the three and nine months ended September 30, 2025 and
2024, outstanding aggregate stock options and warrants of 7,004,227 and 5,194,127, respectively, were not included in the computation
of diluted earnings per share, because to do so would have had an antidilutive effect.

Recent
accounting pronouncements not yet adopted

In
November 202