Company: MIRA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010301
Chunk: 29

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 29
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 expenses, primarily related to research and development
costs, consultant fees, and insurance expenses. 

For
the three months ended March 31, 2024, operating activities used $1.0 million of cash, primarily due to a net loss of $1.7 million, offset
by $0.5 million in stock-based compensation expense and $0.2 million in accounts payable, accrued and prepaid expenses. Accounts payable,
accrued and prepaid expenses were primarily composed of research and development payables, consultant costs, and insurance costs.

Net
Cash Flows from Financing Activities

For
the three months ended March 31, 2025, financing activities provided $0.003 million of cash, resulting from proceeds from sale of common
stock, less offering costs.

For
the three months ended March 31, 2024, financing activities used $0.02 million of cash, resulting from $0.02 million in advances to affiliates.

 17 

Nasdaq
Listing Compliance Risk Due to Stockholders’ Equity Deficiency

We
have received a notice from Nasdaq indicating that we are not in compliance with its minimum stockholders’ equity requirement, and there
can be no assurance that we will be able to regain compliance or maintain our listing.

On
April 8, 2025, we received a notification from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that, as of the filing
of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, we were not in compliance with Nasdaq Listing Rule
5550(b)(1), or the Rule, which requires listed companies to maintain a minimum of $2.5 million in stockholders’ equity. In
accordance with Nasdaq’s procedures, we submitted a plan to regain compliance.

Our
plan includes a number of steps intended to cure the deficiency, including the anticipated closing of a strategic merger with SKNY
Pharmaceuticals, Inc. in the second or third quarter of 2025, which we expect will add approximately $5 million in cash or other
assets to our balance sheet. In addition, we currently have access to approximately $7 million in available capital through our
at-the-market (ATM) offering facility (Note 5 of accompanying financial statements), which we may utilize to further strengthen our
stockholders’ equity position. On May 7, 2025, Nasdaq accepted our plan and granted an extension