Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 466

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 466
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-line over the term of the line of credit (which is 24 months). Associated amortization of deferred finance
costs is recorded to interest expense on the 2023 condensed income statement of operations.

Subsequent
to the IPO, the Bay Shore Trust line of credit was paid in full early, resulting in $2.8 million remaining in deferred financing costs.
These costs were recorded as interest expense on the accompanying statement of operations with the offsetting entry clearing the balance
of amortization in deferred finance costs.

Key
assumptions used to value warrants in April 2023 are as follows

Schedule
of Key Assumptions Used to Value Underwriter Warrants

    Expected
    price volatility 
     88.01%
  
    Risk-free
    interest rate 
     3.51%
  
    Fair
    Market Value of underlying Common Stock 
    $1.00 
  
    Expected
    Term in years 
     5
                                            years 
  
    Dividend
    yield 
     - 

Underwriter
warrants

In
connection with the IPO, the Company issued 63,750 warrants to purchase common stock to the IPO underwriter (or its designees) at an
exercise price of $7.00 which will expire in the four-and-a-half-year period commencing six months after the commencement of sales in
the IPO. The warrants will be exercisable at any time and from time to time, in whole or in part, during the four-and-a-half-year period
commencing six months after the commencement of sales in the IPO. The warrants provide for registration rights (including a one-time
demand registration right and piggyback registration rights that expire 5 years from the commencement of sales of the offering) and customary
anti-dilution provisions as permitted under FINRA Rule 5110(g)(8).

Key
assumptions used to value underwriter warrants in August 2023 were as follows:

Schedule
of Key Assumptions Used to Value Underwriter Warrants

    Expected
    price volatility 
     98.53%
  
    Risk-free
    interest rate 
     4.16%
  
    Fair
    Market Value of underlying Common Stock 
    $5.297 
  
    Expected
    Term in years 
     5
                                            years 
  
    Dividend
    yield 
     - 

    F-20

MIRA PHARMACEUTICALS, INC.

NOTES TO THE