Company: TELO
Filing Date: 2025-02-04
Form Type: 10-K
Source: 0001493152-25-004872
Chunk: 598

Company: Telomir Pharmaceuticals, Inc.
Filing Date: 2025-02-04
Form: 10-K
Item: Item 1B
Chunk 598
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 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 
  
    Dividend yield 
     - 

    F-14

Telomir
                                            Pharmaceuticals, Inc.

notes
to the financial statements

DECEMBER
31, 2024 and  2023

 2023
Omnibus Incentive Plan

In
December 2023, the Company’s Board of Directors adopted the Company’s 2023 Omnibus Incentive Plan, (“2023 Omnibus Plan”).
The 2023 Omnibus Plan authorizes the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code,
to the Company’s employees and any of its parent and subsidiary corporations’ employees, and for the grant of nonstatutory
stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to the Company’s
employees, directors, and consultants and any of its future subsidiary corporations’ employees and consultants

The
2023 Omnibus Plan provides that 6,500,000 shares of the Company’s Common Stock are reserved for issuance under the 2023
Omnibus Plan, all of which may be issued pursuant to the exercise of incentive stock options.

Stock-based
compensation

The
fair value of each option award is estimated on the grant date using the