Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 385

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 385
---
,
    December 31, 2024 
     1,763,570  
    $3.88  
     3.6  
     - 

MIRALOGX
warrants

The
Company issued to MIRALOGX a common stock purchase warrant on November 15, 2023 giving MIRALOGX the right to purchase up to 700,000 shares
of common stock at an exercise price of $2.00 per share. This warrant will expire five years after the date of grant.

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 $1.8 million of warrant
value. This cost was recorded in General and Administrative expenses on the accompanying statement of operations and additional paid
in capital on the accompanying balance sheet as of December 31, 2023

Key
assumptions used to value warrants in November 2023 are as follows

Schedule
of Key Assumptions Used to Value Underwriter Warrants

    Expected
    price volatility 
     127.11%
  
    Risk-free
    interest rate 
     4.52%
  
    Fair
    Market Value of underlying Common Stock 
    $2.95 
  
    Expected
    Term in years 
     5
                                            years 
  
    Dividend
    yield 
     - 

    F-19

MIRA PHARMACEUTICALS, INC.

NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

Bay
Shore Trust warrants

In
consideration of the line of credit provided by the Bay Shore Trust, the Company issued to the Bay Shore Trust a common stock purchase
warrant on April 28, 2023 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. This warrant will expire five years after the date of grant. There are 1,000,000 warrants outstanding at December
31, 2023.

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,