Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 371

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 371
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 loan payables.

Accretion to redemption value on convertible notes
of approximately $1,000 and $16,000 for the years ended December 31, 2024 and 2023, respectively, pertains to the accretion of the convertible
notes to their redemption value using the effective interest method. The Convertible Notes have been accreted to their full redemption
value as of March 31, 2024.

 33 

Liquidity and Capital Resources

As of December 31, 2024, we had cash and cash equivalents
of approximately $115,000. Our ability to continue our operations is highly dependent on our ability to raise capital to fund future operations.
We anticipate, based on currently proposed plans and assumptions, that our cash on hand will not satisfy our operational and capital requirements
through twelve months from the filing date of this Annual Report.

Our primary uses of capital to date are primarily
related to payroll, consulting and related costs, corporate formation and ongoing public company expenses, audit fees, fees associated
with license agreements, including patent-related expenses, and costs of the reverse merger. Pending our ability to identify new product
candidates and license or acquire those rights, then on a go forward basis, we will need significant additional capital to support our
research and development efforts, compensation and related expenses, and hiring additional staff (including clinical, scientific, operational,
financial, and management personnel) and to reduce our current liabilities. Pending our ability to identify new product candidates and
license or acquire those rights, we would expect to incur substantial expenditures in the foreseeable future for the research and development
of new potential product candidates, provided we are able to raise sufficient capital to advance these technologies and technologies under
the Binding Term Sheet, as noted below.

On April 26, 2024, we entered into a binding term
sheet (“Binding Term Sheet”) with Oncotelic Therapeutics, Inc. (“Oncotelic”) pursuant to which we intend to acquire
(i) certain rights to Oncotelic’s clinical stage necroptosis cancer therapies associated with its vascular disruptive agents (“VDAs”)
and related regulatory and clinical packages, and (ii) non-exclusive access to its proprietary Artificial Intelligence (“AI”)
technologies for identifying immunotherapy combinations, in exchange for the issuance of shares of our common stock valued at $15.0 million
upon execution of the definitive agreement (representing 47,923,322 shares of our common stock), or a combination of common