Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 128

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 128
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 to achieve our business objectives. Adequate additional capital is unlikely to be available
on favorable terms or at all.

Raising capital will cause dilution to our stockholders,
restrict our operations, or require us to relinquish rights to our technologies or product candidates. 

Until such time, if ever, as we can generate substantial
product revenues, we expect to finance our cash needs through a combination of equity offerings, debt financings, and/or licensing arrangements.
While we do not have any committed external source of funds, if we raise funds from the issuance of equity securities (which will be challenging
in light of current market conditions), 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), 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.

We cannot be certain that additional funding will
be available on acceptable terms, or at all. If we are unable to raise additional funds when needed, we may be required to cease our operations
altogether.

 16 

Because the Reverse Merger resulted in an ownership
change under Section 382 of the Internal Revenue Code for PTSC, PTSC’s pre-merger net operating loss carryforwards and certain
other tax attributes may be subject to limitations. In addition, if we enter into a definitive agreement with Oncotelic, we would experience
a greater than 50% change in ownership that could cause further limitations on our net operating loss carryforwards.

If a corporation undergoes an “ownership change”
within the meaning of Section 382 of the Code, the corporation’s net operating loss carryforwards and certain other tax attributes
arising from before the ownership change are subject to limitations on use after the ownership change. In general, an ownership change
occurs if there is a cumulative change in the corporation’s equity ownership by certain stockholders that exceeds 50 percentage
points over a rolling three-year period. Similar rules may apply under state tax laws. The Reverse Merger resulted in an ownership change
for PTSC and, accordingly, PTSC’s net operating loss carryforwards and certain other tax attributes may be subject to limitations
(or disallowance) on their use after the Reverse Merger. Additional ownership changes in the future, including the intent to issue 47,923,322
shares of common stock to Oncotelic