Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 238

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 10
Chunk 238
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 of December 31, 2024, the warrant is fully amortized. 

On
November 22, 2024, Bay Shore Trust transferred 100,000 warrants to an unaffiliated party as part of a gift transfer.

In
December 2024, 10,000 Common Stock warrants were exercised at an exercise price of $3.73 per share and the Company issued 10,000 shares
of Common Stock upon such exercise in exchange for $37,300 delivered to the Company.

Key
assumptions used to value warrants during the year ended December 31, 2023 are as follows:

Schedule of key assumptions used to value warrants  

    Expected price volatility 
     78.08%
  
    Risk-free interest rate 
     3.91%
  
    Fair Market Value of underlying Common Stock 
    $1.190 
  
    Expected term in years 
     5 years 
  
    Dividend yield 
     - 

Underwriter
warrants

In
connection with the IPO in February 2024, the Company issued 50,000 warrants
to purchase Common Stock to the IPO underwriter (or its designees) at an exercise price of $7.00 which
are exercisable immediately and  expire in the four-and-a-half-year period commencing six months after the commencement of
sales in the IPO. The warrants provide for registration
rights (including a one-time demand registration right and piggyback registration rights that expire 5 years from the commencement
of sales of the offering) and customary anti-dilution provisions as permitted under FINRA Rule 5110(g)(8). The fair value of the warrants were estimated on the grant date using the Black-Scholes valuation model and level
3 inputs based on assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate, which resulted
in $0.2 million of equity issuance costs. The warrants were
considered equity issuance costs and therefore there was no financial statement impact during the year ended December 31,
2024.

Key
assumptions used to value underwriter warrants in February 2024 are as follows:

Schedule
of key assumptions used to value warrants 

    Expected price volatility 
     84.78%
  
    Risk-free interest rate 
     4.14%
  
    Fair Market Value of underlying Common Stock 
    $7.01 
  
    Expected term in years 
     5 years