Company: TELO
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001493152-25-021496
Chunk: 26

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 26
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 the duration and completion costs of our development projects or when and to what extent we will generate revenue
from the commercialization and sale of our product candidates.

Critical
Accounting Policies

Research
and development expenses

Research
and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract
research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs,
including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in
which they are incurred.

Stock-based
compensation

The
Company accounts for stock-based compensation under the provisions of 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.

Results
of Operations

For
the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024

Research
and Development Expenses. During the three months ended September 30, 2025, we incurred $0.8 million in research and development
expenses, and incurred $0.6 million in research and development expenses during the three months ended September 30, 2024. The main driver
in the increase year over year relates to costs incurred in support of our lead investigational therapy, Telomir-1.

During
the nine months ended September 30, 2025, we incurred $1.1 million in research and development expenses, and incurred $1.9 million in
research and development expenses during the nine months ended September 30, 2024. The main driver in the decrease year over year relates
to costs incurred in 2024 with certain pharmaceutical manufacturing activities that were not performed in 2025.

Since
inception, we have not earned any revenue, nor do we anticipate doing so until we successfully conclude preclinical and clinical development
and obtain regulatory approval. The timing and certainty of this event remain unknown.

Our
oper