Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
Chunk: 1

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 1
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is contingent upon the Independent Valuator determining that SKNY’s valuation is at least equal to or greater than that of ours.

We expect to account for the Acquisition as an asset acquisition
and the purchase price and related costs will be allocated to the various assets on a relative fair value basis in accordance with FASB
ASC 805, Business Combinations. Upon completion of the Acquisition, all SKNY’s assets, including its drug candidates,
will become wholly owned by us, further expanding our development pipeline. On May 8, 2025, we announced that our Board of Directors had approved our planned acquisition of SKNY Pharmaceuticals,
Inc. (the “Merger”), following the completion of independent valuation reports on both companies. The Merger remains subject
to MIRA and SKNY’s shareholder approval.

Basis
of presentation

The
accompanying unaudited condensed financial statements include the accounts of the Company and have been prepared in accordance
with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions
to Quarterly Report on Form 10-Q, and Regulation S-X. These financial statements do not include all information and notes required
by GAAP for annual financial statements. However, except as disclosed herein, there has been no material change in the information disclosed
in the notes to the financial statements included in our Form 10-K for the year ended December 31, 2024. In the opinion of management, all adjustments,
consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included.
Operating results for the periods presented are not necessarily indicative of expected results for the full year. Additionally, certain
prior period amounts have been reclassified to conform to current period presentation in the accompanying unaudited condensed consolidated
financial statements.

     5 

MIRA PHARMACEUTICALS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

(Unaudited)

Research
and development expenses

Research
and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract
research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs,
including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in
which they are incurred.

General
and administrative