Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 295

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 295
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) we
will continue the development work necessary to achieve the mutually agreed upon milestones upon the requisite funding, (ii) Oncotelic
will provide a loan to us to cover certain operational costs of the Company initially through June 2024, (iii) Oncotelic will assist the
Company in potentially raising initial funding to support the technologies of $2 million, and (iv) in the event the Company is unable
to raise the requisite funding, then the transaction may proceed to a reverse acquisition/merger, with conditions typical of such a transaction.

If we enter into a definitive agreement under the
terms of the Binding Term Sheet, our present stockholders will experience immediate substantial dilution and will not have control of
our majority voting securities. In addition, if we do not receive shareholder approval for a possible transaction by Juen 30, 2025, as
amended, we may not be able to enter into a definitive agreement with Oncotelic, and we may need to cease our operations altogether. Currently,
we and Oncotelic are continuing to pursue a potential transaction under the Binding Term Sheet although there are no guarantees we will
enter into any definitive agreement. On December 31, 2024, the expiration date to enter into a possible transaction with Oncotelic was
extended to June 30, 2025. 

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. As of December 31,
2024, the Company has accrued $740 in interest that is included in other accrued expenses within the accompanying consolidated balance
sheet.

Critical
Accounting Policies and Estimates 

Our consolidated financial statements have been prepared
in accordance with accounting