Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 117

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 117
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 would be valued at the time of issuance, if earned. Pursuant to the Binding Term Sheet, we and Oncotelic agreed
to negotiate in good faith towards the execution of a definitive agreement and the closing of the transaction, which is subject to customary
due diligence and other conditions, including obtaining shareholder approval for the transaction and receiving waivers from our holders
of Convertible Notes representing at least 90% of the principal amount outstanding from any payment that would become due and payable
upon a corporate transaction (see Notes 7 and 13 to the accompanying consolidated financial statements) as contemplated under the Binding
Term Sheet.

In addition, under the Binding Term Sheet, (i) 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 of up to $70,000 which was fully
funded, (iii) Oncotelic will assist the Company in potentially raising initial funding of $2 million to support the technologies, 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.

Pursuant to the Binding Term Sheet, we needed to obtain
shareholder approval for the transaction by June 30, 2025, as amended, or we may not be able to enter into a definitive agreement with
Oncotelic, and we may need to cease our operations altogether. As of the date of this Report, we and Oncotelic are continuing to pursue
the 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.  

If we enter into a definitive agreement with Oncotelic
under the terms of the binding term sheet, existing stockholders will experience substantial immediate dilution. 

We have 7,242,137 shares of common stock outstanding
as of the filing date of this Report. If we enter into a definitive agreement with Oncotelic pursuant to the terms of the Binding Term
Sheet, we could issue 47,923,322 shares of our common stock to Oncotelic, resulting in immediate substantial dilution to our existing
stockholders. In addition, under the Binding Term