Company: CPMV
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001683168-25-002584
Chunk: 721

Company: Mosaic ImmunoEngineering Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 721
---
 full redemption of our 2,100,000 shares of Series A Preferred
Stock of Holocom. During the year ended December 31, 2023, we received cash proceeds of $433,000 upon the redemption of 1,242,500 shares
of Series A Preferred Stock. As of December 31, 2023, we received all proceeds under the Redemption Agreement, and therefore, there were
no proceeds received during the year ended December 31, 2024.

Interest Income

Interest income of approximately $3,000 for the year
ended December 31, 2023 is primarily related to interest earned and received on monthly past due redemption installments from Holocom
under the Redemption Agreement.

Change in Valuation of Derivative Liability

The change in valuation of the derivative liability
of approximately $47,000 for the year ended December 31, 2023 pertains to a decrease in the estimated fair value of the anti-dilution
issuance rights pursuant to the Series B Preferred. There was no remaining anti-dilution issuance rights liability outstanding as of December
31, 2023 and therefore no change in value recognized during 2024.

Interest Expense and Accretion to Redemption Value
on Convertible Notes

Interest expense of approximately $81,000 and $73,000
for the years ended December 31, 2024 and 2023, respectively, represents interest expense on convertible notes and 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