Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 151

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 151
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 Accounting Pronouncements

A
description of recently issued and adopted accounting pronouncements that may potentially impact our financial position and results of
operations is disclosed in Note 1 to our financial statements appearing at the end of this Report.

Off-Balance
Sheet Arrangements

During
the periods presented, we did not have, nor do we currently have, any off-balance sheet arrangements as defined under SEC rules.

Summary of Critical Accounting Policies and Estimates

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 our behalf. 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.

Stock-based
compensation

We
account for stock-based compensation under the provisions of FASB ASC 718, “Compensation - Stock Compensation”, which
requires the measurement and recognition of compensation expense for all stock-based awards made to employees, directors and consultants
based on estimated fair values on the grant date. We estimate the fair value of stock-based awards on the date of grant using the Black-Scholes
model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service
periods using the straight-line method. We have elected to account for forfeiture of stock-based awards as they occur.

Emerging
Growth Company Election

We
are an “emerging growth company” as defined in Section 2(a) of the Securities Act and have elected to take advantage of the
benefits of the extended transition period for new or revised financial accounting standards. We expect to continue to take advantage
of the benefits of the extended transition period, although we may decide to early adopt such new or revised accounting standards to
the extent permitted by such standards. We expect to use this extended transition period for complying with new or revised accounting
standards that have different effective dates for public and non-public companies until the earlier of the date we (i) are no longer
an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act.
This may make it difficult or impossible to compare our financial results with the financial results of another public company that is
either not an emerging growth company or is an emerging growth company that has chosen not to