Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 426

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 426
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 in the period in which the unfavorable
outcome occurs or becomes probable, and potentially in future periods.

Indemnification

We have made certain guarantees and indemnities, under
which we may be required to make payments to a guaranteed or indemnified party. We indemnify our directors, officers, employees, and agents
to the maximum extent permitted under the laws of the State of Delaware. The duration of the guarantees and indemnities varies, and in
many cases is indefinite. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments
we could be obligated to make. Historically, we have not been obligated to make any payments for these obligations and no liabilities
have been recorded for these guarantees and indemnities in the accompanying consolidated balance sheets.

Escrow Shares

On August 31, 2009, we gave notice to the former shareholders
of Crossflo and Union Bank of California (the “Escrow Agent”) under Section 2.5 of the Agreement and Plan of Merger between
us and Crossflo (the “Agreement”), outlining damages incurred by us in conjunction with the acquisition of Crossflo, and seeking
the return of 5,690 shares of our common stock held by the Escrow Agent. Subsequently, former shareholders of Crossflo, representing a
majority of the escrowed shares responded in protest to our claim, delaying the release of the escrowed shares until a formal resolution
is reached. In the event we fail to prevail in our claim against the escrowed shares, we may be obligated to deposit into escrow
approximately $256,000 of cash consideration due to the decline in our average stock price over the one-year escrow period calculated
in accordance with Section 2.5 of the Agreement.  We have evaluated the potential for loss regarding our claim and believe that it
is probable that the resolution of this issue will not result in a material obligation to the Company, although there is no assurance
of this. Accordingly, we have not recorded any liability for this matter.

Operating Lease 

We have no lease obligations as of December 31, 2024
and there was no rent expense for the years ended December 31, 2024 and 2023. Employees are working from home offices at no cost to the
Company.

     F-22 

    Mosaic ImmunoEngineering, Inc.

    Notes to Consolidated Financial Statements
    For the Years Ended December 31, 2024 and