Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 524

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 1A
Chunk 524
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consideration of the line of credit provided by the Bay Shore Trust, the Company issued to the Bay Shore Trust a common stock
purchase warrant on June 15, 2023 giving the Bay Shore Trust the right to purchase up to 2,439,025 shares
of common stock at an exercise price of $3.73 per
share. This warrant will expire five
years after the date of grant.. The fair value of the warrants were estimated on the grant date using the Black-Scholes
valuation model and level 3 inputs based on assumptions for expected volatility, expected dividends, expected term, and the
risk-free interest rate, which resulted in $5.95 million
of deferred financing costs. This cost was recorded as deferred financing costs and additional paid in capital on the accompanying
balance sheet and is amortized straight-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 income statement of operations. The line of credit expired upon the
IPO occurring in February 2024, and as such the remaining deferred financing costs associated with the warrant was fully amortized
to interest expense.  As of December 31, 2024, the warrant is fully amortized. 

On
November 22, 2024, Bay Shore Trust transferred 100,000 warrants to an unaffiliated party as part of a gift transfer.

In
December 2024, 10,000 Common Stock warrants were exercised at an exercise price of $3.73 per share and the Company issued 10,000 shares
of Common Stock upon such exercise in exchange for $37,300 delivered to the Company.

Key
assumptions used to value warrants during the year ended December 31, 2023 are as follows:

Schedule of key assumptions used to value warrants  

    Expected price volatility 
     78.08%
  
    Risk-free interest rate 
     3.91%
  
    Fair Market Value of underlying Common Stock 
    $1.190 
  
    Expected term in years 
     5 years 
  
    Dividend yield 
     - 

Underwriter
warrants

In
connection with the IPO in February 2024, the Company issued 50,000 warrants
to purchase Common Stock to the IPO underwriter (or its designees) at an exercise price of $7.00 which
are exercisable immediately