Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 138

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 138
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 certain documentation, make suitability
inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure
document, quote information, broker’s commission information and rights and remedies available to investors in penny stocks. Many
brokers have decided not to trade “penny stock” because of the requirements of the penny stock rules, and as a result, the
number of broker-dealers willing to act as market makers in such securities is limited. The “penny stock rules,” therefore,
may have an adverse impact on the market for our common stock and may affect our ability to raise additional capital.

FINRA sales practice requirements may limit a stockholder’s
ability to buy and sell our common stock.

The Financial Industry Regulatory Authority, or FINRA,
has adopted rules requiring that, in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing
that the investment is suitable for that customer. Prior to recommending speculative or low-priced securities to their non-institutional
customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status,
investment objectives and other information. Under interpretations of these rules, FINRA has indicated its belief that there is a high
probability that speculative or low-priced securities will not be suitable for at least some customers. If these FINRA requirements are
applicable to us or our securities, they may make it more difficult for broker-dealers to recommend that at least some of their customers
buy our common stock, which may limit the ability of our stockholders to buy and sell our common stock and could have an adverse effect
on the market for and price of our common stock.

Future sales of shares by existing stockholders
could cause the Company’s stock price to decline. 

If existing stockholders of the Company sell, or indicate
an intention to sell, substantial amounts of the Company’s common stock in the public market, the trading price of the common stock
could decline significantly. After the Reverse Merger, shareholders of Private Mosaic currently own a majority of the fully diluted shares
of common stock outstanding. In addition, our shareholders are not restricted in the price at which they can sell their shares. Shares
sold at a price below the current market price at which our common stock is trading may cause the market price of our common stock to
decline.

We expect our stock price to be volatile, and the market price of our
common stock may drop unexpectedly. 

The market price of our common stock