Company: TELO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021496
Chunk: 37

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 37
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 accounting principles in the United States of America requires
the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the
reporting period. Actual results may differ from such estimates and such differences could be material. Significant estimates during
the reporting periods include stock-based compensation and the deferred tax asset valuation allowance.

Cash
and cash equivalents

The
Company considers all highly liquid debt instruments and other short-term investments with maturities of three months or less, when purchased,
to be cash equivalents. The Company maintains cash balances at two financial institutions that are insured by the Federal Deposit Insurance
Corporation (“FDIC”). The Company’s account at these institutions is insured by the FDIC up to $250,000. On September
30, 2025, the Company had cash in excess of FDIC limits of approximately $7.1 million. Any material loss that the Company may experience
in the future could have an adverse effect on its ability to pay its operational expenses or make other payments and may require the
Company to move its cash to other high quality financial institutions. The Company deems these institutions to be of high caliber and,
to date, has not experienced any losses related to these holdings.

Stock-based
compensation

The
Company accounts for stock-based compensation under the provisions of Financial Accounting Standards Board Accounting Standard Codification
718 (FASB ASC 718), “Compensation - Stock Compensation”, which requires the measurement and recognition of compensation expense
for all stock-based awards made to employees, directors and consultants based on estimated fair values on the grant date. The Company
estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award
that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. The Company
has elected to account for forfeiture of stock-based awards as they occur.

    7

Fair
value measurements and financial instruments

The
Company measures the fair value of financial instruments in accordance with GAAP which defines fair value, establishes a framework for
measuring fair value, and expands disclosures about fair value measurements.

GAAP
defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability