Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 478

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 478
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ent Liabilities

We may be involved in various legal matters, disputes,
and patent infringement claims which arise in the ordinary course of our business. We accrue for any estimated losses at the time when
we can make a reliable estimate of such loss and it is probable that it has been incurred. By their very nature, contingencies are difficult
to estimate. We continually evaluate information related to all contingencies to determine that the basis on which we have recorded our
estimated exposure is appropriate.

Patent Costs

Patent fees and patent related costs in connection
with filing and prosecuting patent applications are expensed as incurred and are classified as general and administrative expenses in
the accompanying consolidated financial statements.

Share-Based Compensation

We account for restricted stock units (“RSUs”)
and other share-based awards granted under our equity compensation plan in accordance with the authoritative guidance for share-based
compensation. The fair value of RSUs is measured at the grant date based on the closing market price of our common stock on the date of
grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of
share-based compensation expense as they occur. At December 31, 2024 and 2023, there were no outstanding share-based awards with market
or performance conditions.

In addition, we periodically grant RSUs to non-employee
consultants, which we account for in accordance with the authoritative guidance for share-based compensation. The cost of non-employee
services received in exchange for share-based awards are measured based on either the fair value of the consideration received, or the
fair value of the share-based award issued, whichever is more reliably measurable.

     F-10 

    Mosaic ImmunoEngineering, Inc.

    Notes to Consolidated Financial Statements
    For the Years Ended December 31, 2024 and 2023 (continued)

Basic and Diluted Income (Loss) Per Common Share

Basic income (loss) per common share is computed by
dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period.
Diluted earnings per common share is computed by dividing our net income (loss) available to common stockholders by the sum of the weighted
average number of common shares outstanding during the period, plus the potential dilutive effects of unvested RSUs and shares of common
stock expected to be issued under our Convertible Notes and Series A and B Preferred during