Company: MIRA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024077
Chunk: 19

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 19
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 three months
ended June 30, 2025 and 2024, respectively. General and administrative expenses are composed primarily of compensation, insurance, professional
fees, stock-based compensation, administration and other related costs. The decrease from 2024 to 2025 was primarily due to a decrease in stock-based
compensation related to compensation to the officers, directors, and employees.

We
incurred $2.5 million and $2.1 million in general and administrative expenses during the six months ended June 30, 2025 and 2024, respectively.
General and administrative expenses are composed primarily of compensation, insurance, professional fees, stock-based compensation, administration
and other related costs. The difference is primarily due to an increase in stock-based compensation related to compensation to the officers,
directors, and employees during the 2025 fiscal year.

Interest
income. We earned $0.01 and $0.04 million in interest income during the three months ended June 30, 2025 and 2024, respectively.
Interest income during the three months for each respective period consisted of interest earned on bank accounts.

We
earned $0.03 and $0.09 million in interest income during the six months ended June 30, 2025 and 2024, respectively. The difference is
primarily due to cash balances.

Liquidity
and Capital Resources

Sources
of Liquidity and Going Concern

Since
our inception in September 2020, we have financed our operations primarily through an unsecured line of credit with a major shareholder
and an affiliated company, through a private placement of shares of our common stock that occurred during the fourth quarter 2021 and
during 2022, and by the proceeds from our completed initial public offering in August 2023. We intend to finance our clinical development
programs and working capital needs from existing cash, and potentially new sources of debt and equity financing. We may enter into new
licensing and commercial partnership agreements.

Historically,
we have been primarily engaged in developing MIRA-55 and, more recently, have also been focusing on the development of Ketamir-2. During
these activities, we have sustained substantial losses. Our ability to fund ongoing operations and future clinical and clinical trials
required for FDA approval is dependent on our ability to obtain significant additional external funding in the near term. We expect to
be able to fund operations through the fourth quarter of 2025, with the issuance of common stock under