Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 116

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 116
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ability to continue as a going concern.

If we raise funds from the issuance of equity securities
(which will be challenging in light of current market conditions combined with our limited technologies), substantial dilution to our
existing stockholders would likely result. If we raise additional funds by incurring debt financing (also challenging in light of current
market conditions combined with our limited technologies), the terms of the debt may involve significant cash payment obligations as well
as covenants and specific financial ratios that may restrict our ability to operate our business. Since the closing date of the Reverse
Merger, our limited cash position has required us to perform only limited development activities and to delay and scale back our development
programs and other activities to remain afloat. If we continue to have insufficient funds, we may be required to cease our operations
altogether.

Our ability to pursue the research and development
activities and other initiatives discussed in the following risk factors and elsewhere in this Report is pending our ability to raise
sufficient capital and successfully identify new product candidates and license or acquire those rights, which may not be available to
us in light of current market conditions combined with our limited technologies.

The consolidated financial statements included in
this Report do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of
liabilities that might be necessary should the Company be unable to continue as a going concern.

 9 

We entered into a binding term sheet with Oncotelic
Therapeutics, Inc. to acquire rights to certain technologies of Oncotelic and we may not enter into a definitive agreement if certain
conditions are not met. 

In order to establish a new product pipeline, on April
26, 2024, we entered into a binding term sheet (“Binding Term Sheet”) with Oncotelic Therapeutics, Inc.(“Oncotelic”)
pursuant to which we intend to acquire (i) certain rights to Oncotelic’s clinical stage necroptosis cancer therapies associated
with its vascular disruptive agents (“VDAs”) and related regulatory and clinical packages, and (ii) non-exclusive access to
its proprietary Artificial Intelligence (“AI”) technologies for identifying immunotherapy combinations, in exchange for shares
of our common stock valued at $15.0 million upon execution of the definitive agreement, or a combination of common stock and preferred
stock to be determined by the parties, along with additional milestones allowing Oncotelic to earn up to an additional $15.0 million in
shares of common stock that