Company: MIRA
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001183
Chunk: 535

Company: MIRA PHARMACEUTICALS, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 4
Chunk 535
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 accrued interest
at a rate of 5% per annum.

In
April 2023, the Company entered into a Promissory Note and Loan Agreement with the Bay Shore Trust, a trust established by the largest
shareholder of the Company. Under this Promissory Note and Loan Agreement (the “Bay Shore Note”), the Company had the right
to borrow up to an aggregate of $5 million from the Bay Shore Trust at any time up to the second anniversary of the issuance of the Bay
Shore Note or, if earlier, upon the completion of the Company’s IPO.

The
Bay Shore Note replaced the revolving credit facility that the Company entered into with Starwood Trust, and pursuant to which the Company
had an outstanding principal balance of $0.2 million as of the date of the Bay Shore Note (which outstanding balance was retired
with an advance under the Bay Shore Note).

In
consideration of the loan facility provided by the Bay Shore Trust, in April 2023, the Company issued to the Bay Shore Trust a common
stock purchase warrant 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, which warrant will expire five years after the date of grant. Pursuant to a registration rights agreement, the Company
registered for resale the shares issuable upon the exercise of the warrant in December 2023. See Note 8 for additional details related
to these warrants.

On
July 20, 2023, the Company entered into a conversion agreement with the Bay Shore Trust under which the Bay Shore Trust had agreed to
convert, upon the completion of the IPO, $1.1 million of the outstanding principal balance of the Bay Shore Note into shares of the Company’s
common stock at a conversion price equal to the Company’s IPO price, which resulted in the issuance of 157,170 shares to the Bay
Shore Trust. On August 14, 2023, the Company paid $1.0 million in full to Bay Shore Trust, which was the amount due. The Company also
paid accrued interest of $0.03 million. Both amounts are recorded in the accompanying statement of operations for the year ended December
31, 2023 as interest expense. The remaining amount of $0.01 million in accrued interest due to Bay Shore Trust was paid as of December
31, 2024, as reflected in the accompanying financial statements, and the