Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 127

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 127
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 Note replaced the revolving credit facility that the Company entered into with Starwood Trust, and pursuant to which the Company
had an outstanding principal balance of $0.2 million as of the date of the Bay Shore Note (which outstanding balance was retired
with an advance under the Bay Shore Note).

In
consideration of the loan facility provided by the Bay Shore Trust, in April 2023, the Company issued to the Bay Shore Trust a common
stock purchase warrant giving the Bay Shore Trust the right to purchase up to 1,000,000 shares of common stock at an exercise price of
$5.00 per share, which warrant will expire five years after the date of grant. Pursuant to a registration rights agreement, the Company
registered for resale the shares issuable upon the exercise of the warrant in December 2023. See Note 8 for additional details related
to these warrants.

On
July 20, 2023, the Company entered into a conversion agreement with the Bay Shore Trust under which the Bay Shore Trust had agreed to
convert, upon the completion of the IPO, $1.1 million of the outstanding principal balance of the Bay Shore Note into shares of the Company’s
common stock at a conversion price equal to the Company’s IPO price, which resulted in the issuance of 157,170 shares to the Bay
Shore Trust. On August 14, 2023, the Company paid $1.0 million in full to Bay Shore Trust, which was the amount due. The Company also
paid accrued interest of $0.03 million. Both amounts are recorded in the accompanying statement of operations for the year ended December
31, 2023 as interest expense. The remaining amount of $0.01 million in accrued interest due to Bay Shore Trust was paid as of December
31, 2024, as reflected in the accompanying financial statements, and the Note is no longer active.

    F-13

MIRA
                                            PHARMACEUTICALS, INC.

NOTES
TO THE FINANCIAL STATEMENTS

DECEMBER
31, 2024 AND 2023

Note
5. Related party transactions:

Due
from Related Party - As of the year ended December 31, 2023, the Company paid $0.07 million to vendors on behalf of a related party.
During the year ended December 31, 2024, related parties made payments on behalf of the Company in the amount of $0.03 million for