Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Nov. 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-41765 | |
Entity Registrant Name | MIRA Pharmaceuticals, Inc. | |
Entity Central Index Key | 0001904286 | |
Entity Tax Identification Number | 85-3354547 | |
Entity Incorporation, State or Country Code | FL | |
Entity Address, Address Line One | 1200 Brickell Avenue | |
Entity Address, Address Line Two | Suite 1950 #1183 | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33131 | |
City Area Code | (786) | |
Local Phone Number | 432-9792 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | MIRA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,780,885 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash | $ 3,528,695 | $ 4,602,566 |
Other Receivables | 11,862 | |
Prepaid expenses | 185,336 | 243,802 |
Total current assets | 3,714,031 | 4,858,230 |
Operating lease, right of use assets | 1,273 | 5,061 |
Total assets | 3,808,791 | 4,932,443 |
Current liabilities: | ||
Trade accounts payable | 636,261 | 538,564 |
Current portion of operating lease liabilities | 1,273 | 5,061 |
Total current liabilities | 652,006 | 558,097 |
Total liabilities | 652,006 | 558,097 |
Stockholders’ equity | ||
Preferred Stock, $0.0001 par value, 10,000,000 shares authorized and none issued or outstanding. | ||
Common Stock, $0.0001 par value; 100,000,000 shares authorized, 14,780,885 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively. | 1,478 | 1,478 |
Additional paid-in capital | 26,158,140 | 25,657,930 |
Accumulated deficit | (23,002,833) | (21,285,062) |
Total stockholders’ equity | 3,156,785 | 4,374,346 |
Total liabilities and stockholders’ equity | 3,808,791 | 4,932,443 |
Related Party [Member] | ||
Current assets: | ||
Due from related parties | 93,487 | 69,152 |
Current liabilities: | ||
Related party accrued interest | $ 14,472 | $ 14,472 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 14,780,885 | 14,780,885 |
Common stock, shares outstanding | 14,780,885 | 14,780,885 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenues | ||
Operating costs: | ||
General and administrative expenses | 1,005,911 | 614,235 |
Related party travel costs | 453,550 | |
Research and development expenses | 762,276 | 271,606 |
Total operating costs | 1,768,187 | 1,339,391 |
Interest income (expense), net | 50,416 | (1,653) |
Net loss attributable to common stockholders | $ (1,717,771) | $ (1,341,044) |
Basic loss per share | $ (0.12) | $ (0.10) |
Diluted loss per share | $ (0.12) | $ (0.10) |
Weighted average common stock shares outstanding - basic | 19,707,847 | 17,750,667 |
Weighted average common stock shares outstanding - diluted | 19,707,847 | 17,750,667 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Total |
Balances at Dec. 31, 2022 | $ 6,657 | $ 8,699,830 | $ (9,302,717) | $ (596,230) |
Balance, shares at Dec. 31, 2022 | 13,313,000 | |||
Stock-based compensation | 147,800 | 147,800 | ||
Net loss | (1,341,044) | (1,341,044) | ||
Balances at Mar. 31, 2023 | $ 6,657 | 8,847,630 | (10,643,761) | (1,789,474) |
Balance, shares at Mar. 31, 2023 | 13,313,000 | |||
Balances at Dec. 31, 2023 | $ 1,478 | 25,657,930 | (21,285,062) | 4,374,346 |
Balance, shares at Dec. 31, 2023 | 14,780,885 | |||
Stock-based compensation | 500,210 | 500,210 | ||
Net loss | (1,717,771) | (1,717,771) | ||
Balances at Mar. 31, 2024 | $ 1,478 | $ 26,158,140 | $ (23,002,833) | $ 3,156,785 |
Balance, shares at Mar. 31, 2024 | 14,780,885 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from Operating activities | ||
Net loss | $ (1,717,771) | $ (1,341,044) |
Adjustments to reconcile net loss to net cash from operations | ||
Interest expense | 1,653 | |
Stock-based compensation expense | 500,210 | 147,800 |
Change in operating assets and liabilities: | ||
Trade accounts payable and accrued expenses | 97,697 | 176,316 |
Prepaid expenses | 58,466 | (60,031) |
Other receivables | 11,862 | |
Net cash flows from operating activities | (1,049,536) | (1,075,306) |
Financing activities: | ||
Advances (to) from affiliates | (24,335) | 685,458 |
Payment of deferred offering costs | (46,261) | |
Borrowings under related party line of credit | 86,480 | |
Net cash flows from financing activities | (24,335) | 725,677 |
Net change in cash | (1,073,871) | (349,629) |
Cash, beginning of year | 4,602,566 | 350,978 |
Cash, end of period | 3,528,695 | 1,349 |
Cash paid for interest |
Description of business and sum
Description of business and summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Description of business and summary of significant accounting policies | Note 1. Description of business and summary of significant accounting policies Overview MIRA Pharmaceuticals, Inc., a Florida corporation (“we,” “us,” “our,” “MIRA,” or the “Company”), is a pre-clinical-stage pharmaceutical development company with two neuroscience programs targeting a broad range of neurologic and neuropsychiatric disorders. We hold exclusive license rights in the U.S., Canada and Mexico for Ketamir-2, a novel, patent pending oral ketamine analog under pre-clinical investigation to potentially deliver ultra-rapid antidepressant effects, providing hope for individuals battling treatment-resistant depression (“TRD”), major depressive disorder with suicidal ideation (MDSI), and potentially post-traumatic stress disorder (“PTSD”). Additionally, our novel oral pharmaceutical marijuana, MIRA-55, is currently under investigation for its potential to alleviate neuropathic pain, as well as anxiety and cognitive decline, symptoms often associated with early-stage dementia. MIRA-55, if approved by the U.S. Food and Drug Administration (“FDA”), could mark a significant advancement in addressing various neuropsychiatric, inflammatory, and neurologic diseases and disorders. The U.S. Drug Enforcement Administration’s (“DEA”) scientific review of Ketamir-2 concluded that it would not be considered a controlled substance or listed chemical under the Controlled Substances Act (“CSA”) and its governing regulations. Additionally, we have submitted the required paperwork for MIRA-55 to be evaluated by the DEA. We were incorporated under the laws of the State of Florida in September 2020 and commenced substantive operations, including our pharmaceutical development program, in late 2020. Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”). As used herein, the Company’s Common Stock, par value $ 0.0001 0.0001 Operating updates In early February 2024, we made a significant discovery during the manufacturing and scale-up process of our patented molecule known as “MIRA1a,” which we believed was the molecule used in our pre-clinical trials and had been synthesized by a contract manufacturer. Through this process, we identified a novel and improved version of the molecule, which we call MIRA-55. As part of our due diligence and subsequent testing, which began in late 2023, we discovered that the pre-clinical studies we conducted, previously attributed to MIRA1a, were in fact performed on MIRA-55. Following this revelation, in early March 2024, we promptly filed a provisional patent for MIRA-55, which encompasses all pre-clinical studies disclosed in our two registration statements on Form S-1, declared effective on August 2, 2023 and December 27, 2023 (File Nos. 333-273024 and 333-276118, respectively). If such patent is issued, we would own the patent rights to both MIRA1a and MIRA-55. Moreover, based on our pre-clinical analyses to date, we believe that MIRA-55 is an improvement over MIRA1a in that it displays enhanced potency and potential for efficacy. Additional testing is required to confirm our preliminary beliefs. However, based on our discoveries to date, we have decided to advance MIRA-55 as our lead compound for our oral pharmaceutical marijuana drug candidate while still retaining our rights to MIRA1a. As such, we do not intend to move MIRA1a forward as of the date of this Quarterly Report on Form 10-Q for the period ended March 31, 2024 (this “Report”). Initial public offering On August 7, 2023, the Company closed its initial public offering consisting of 1,275,000 7.00 8.9 1.2 7.7 The shares were offered and sold pursuant to the Company’s Registration Statement on Form S-1, as amended (File No. 333-273024), originally filed with the Securities and Exchange Commission (the “SEC”) on June 29, 2023 (the “Registration Statement”) and the final prospectuses filed with the SEC pursuant to Rule 424(b) of the Securities Act of 1933, as amended. The Registration Statement was declared effective by the SEC on August 2, 2023. The common stock began trading on The Nasdaq Capital Market on August 3, 2023, under the symbol “MIRA”. The closing of the IPO occurred on August 7, 2023. Income taxes The Company is taxed as a C corporation. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years and for loss carryovers. A valuation allowance is recognized regarding deferred tax assets, if any, if it is more likely than not that some portion of the deferred tax asset will not be realized. Research and development expenses Research and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs, including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in which they are incurred. Leases The Company accounts for leases under the provisions of FASB ASC Topic 842, “Leases”, which requires the Company to recognize right-to-use (“ROU”) assets and lease liabilities for operating leases on the balance sheet. Use of estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of 270-10t assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results may differ from such estimates and such differences could be material. Cash The Company maintains cash balances with financial institutions that management believes are of high credit quality. The Company’s cash account at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk from its cash account. Stock-based compensation The Company accounts for stock-based compensation under the provisions of FASB ASC 718, “ Compensation - Stock Compensation Fair Value of Financial Instruments The Company measures the fair value of financial instruments in accordance with GAAP which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company considers the carrying amount of deferred offering costs to approximate fair value due to short-term nature of this instrument. GAAP describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions). |
Liquidity and capital resources
Liquidity and capital resources | 3 Months Ended |
Mar. 31, 2024 | |
Liquidity And Capital Resources | |
Liquidity and capital resources | Note 2. Liquidity and capital resources In accordance with Accounting Standards Codification 205-40, Going Concern 3.5 1.0 3.2 4.4 Historically, the Company has been primarily engaged in developing MIRA-55 and, more recently, has also been focusing on the development of Ketamir-2. During these activities, the Company sustained substantial losses. The Company’s ability to fund ongoing operations and future pre-clinical and clinical trials required for FDA approval is dependent on the Company’s ability to obtain significant additional external funding in the near term. Since inception, the Company financed its operations through the sale of Common Stock, the IPO and related party financings. Additional sources of financing are being sought by the Company, which are described below. The Company expects to be able to fund operations through the fourth quarter of 2024, with available borrowings from the related-party loan described in Note 4 below. Additional financing will be needed by the Company to fund its operations after such date to continue and complete pre-clinical and clinical development activities and to commercially develop and ultimately launch its product candidates. However, and particularly given the early-stage nature of the Company and the significant time and capital required to implement the Company’s business plan, there can be no assurance that any fundraising will be achieved on commercially reasonable terms, if at all. The Company expects to continue to generate losses in the foreseeable future. The Company’s liquidity needs will be determined largely by the budgeted operational expenditures incurred in regard to the progression of its product candidates. The Company does not have sufficient cash and cash equivalents as of the date of filing this Report to support its operations for at least the 12 months following the date the financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through 12 months after the date the accompanying financial statements are issued. To alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern, the Company plans to secure additional capital, potentially through a combination of public or private equity offerings and strategic transactions, including potential alliances and drug product collaborations; however, none of these alternatives are committed at this time. There can be no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to it to fund continuing operations, if at all, identify and enter into any strategic transactions that will provide the capital that it will require or achieve the other strategies to alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern. If none of these alternatives are available, or if available, are not available on satisfactory terms, the Company will not have sufficient cash resources and liquidity to fund its business operations for at least the 12 months following the date the financial statements are issued. The failure to obtain sufficient capital on acceptable terms when needed may require the Company to delay, limit, or eliminate the development of business opportunities and its ability to achieve its business objectives and its competitiveness, and its business, financial condition, and results of operations will be materially adversely affected, or, in the worst case scenario, the Company could be forced to cease operations and dissolve. In addition, the perception that the Company may not be able to continue as a going concern may cause others to choose not to deal with it due to concerns about its ability to meet its contractual obligations. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business, and do not include any adjustments relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
License agreement, related part
License agreement, related party | 3 Months Ended |
Mar. 31, 2024 | |
License Agreement Related Party | |
License agreement, related party | Note 3. License agreement, related party MIRALOGX On November 15, 2023, the Company and MIRALOGX, LLC, a Florida limited liability company (“MIRALOGX”) which is a related-party owned by Bay Shore Trust, a significant stockholder of the Company (“Bay Shore Trust”), entered into an exclusive license agreement (the “License Agreement”) to develop and commercialize Ketamir-2, a drug product containing 2-(2- chlorophenyl)-2-(methylamino) cyclopentan-1-one as an active agent in the United States, Canada and Mexico (the “Territory”). The exclusive license in the License Agreement includes the right of the Company to sublicense the licensed intellectual property. Pursuant to the terms of the License Agreement, and subject to the conditions set forth therein, the Company paid MIRALOGX a one-time, nonrefundable payment of $ 0.1 Also, in consideration of the License Agreement, the Company issued to MIRALOGX a Common Stock Purchase Warrant to purchase up to 700,000 2.00 The Company and MIRALOGX have made customary representations and warranties in the License Agreement and have agreed to certain other customary covenants, including confidentiality, cooperation, and indemnity provisions. Either party may terminate the License Agreement for cause if the other party materially breaches or defaults in the performance of its obligations, and, if curable, such material breach remains uncured for 120 days. Unless earlier terminated, the License Agreement will continue in effect until the last to expire of the patent rights licensed pursuant to the License Agreement, unless earlier terminated. The Company, Bay Shore Trust and MIRALOGX have the same grantor or founder, as the case may be. |
Debt, related party
Debt, related party | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt, related party | Note 4. Debt, related party MIRALOGX On November 15, 2023, the Company entered into a Promissory Note and Loan Agreement (the “Loan Agreement”) with MIRALOGX. Pursuant to the Loan Agreement, the Company may borrow up to $ 3.0 Together with any Advance Request, the Company shall deliver to the Lender a budget for the requested Advance (the “Budget”). The Budget may only include costs directly associated with preparing an Investigational New Drug (“IND”) application for Ketamir-2, exclusive of personnel costs. Any Advances made by MIRALOGX to the Company pursuant to this Loan may be repaid by the Company (together with any and all interest accrued thereon) at any time without penalty or premium in accordance with the terms hereof. Amounts repaid under the Loan may not be reborrowed. The Loan Agreement has a one-year term, and all outstanding principal and accrued but unpaid interest must be repaid in full on November 15, 2024. Interest on the amounts borrowed under the Loan Agreement accrues at an annual fixed rate of 8 Bay Shore Trust In April 2023, the Company entered into a Promissory Note and Loan Agreement with the Bay Shore Trust. Under this Promissory Note and Loan Agreement (the “Bay Shore Note”), the Company had the right to borrow up to an aggregate of $ 5 7 On July 20, 2023, the Company entered into a conversion agreement with the Bay Shore Trust under which the Bay Shore Trust had converted, at the time of the IPO, $ 1.1 157,170 1.0 0.03 0.01 |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 5. Related party transactions Due from related parties 0.09 0.07 Jet lease expenses 0.05 0.05 License agreement - See Note 3. Debt, related party - See Note 4. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Leases | Note 6. Leases The Company’s corporate headquarters was formerly in Baltimore, Maryland, which included a lease for office space. This lease began in November 2021 and was amended in April 2023. The Company did not renew this lease. This space has a remaining base rent of $ 0.001 The Company also leased a jet (as described in Note 5) from a related party, which lease the Company terminated on March 31, 2023. Variable lease costs Variable lease costs primarily include utilities, property taxes, and other operating costs that are passed on from the lessor. Variable lease costs related to the aircraft include usage expenses, which includes pilot expenses, jet fuel and general flight expenses. The components of lease expense were as follows: Schedule of Lease Expense Three months ended March 31, Lease Costs 2024 2023 Operating Lease Cost Operating Lease $ 3,819 $ 205,682 Variable Lease Costs - 313,858 Total Lease Cost $ 3,819 $ 519,540 Supplemental cash flow information related to leases were as follows: Schedule of Cash Flow Information Related to Leases Three months ended March 31, Other Lease Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,819 $ 519,540 Schedule of Remaining Weighted-average Lease Term and Weighted-average Discount Rate Three months ended March 31, 2024 2023 Lease Term and Discount Weighted Average remaining lease term 0.33 0.53 Weighted Average discount rate 5.0 % 5.0 % Maturity of Lease Liabilities Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Schedule of Maturity of Lease Liabilities Maturity of Lease Liabilities March 31, 2024 Remainder of 2024 $ 1,273 Less: Interest - Present Value of Lease Liabilities $ 1,273 On April 1, 2023 the Company entered into an Agreement For Shared Lease Costs with MIRALOGX (the “Shared Agreement”) for the jet usage (see Note 6). Under the Shared Agreement, the Company agreed to make monthly contributions or payments in accordance with its monthly use of shared aircraft toward rent payments. However, the Company has not used the aircraft after the termination of the lease and there are no minimum payments due without usage. |
Stockholders_ equity
Stockholders’ equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders’ equity | Note 7. Stockholders’ equity Capital stock The Company has the authority to issue 110,000,000 100,000,000 10,000,000 Reverse Stock Split Effective June 28, 2023, we completed a 1-for-5 reverse stock split of our outstanding Common Stock. Unless otherwise noted, the share and per share information in this Report reflects the reverse stock split. Stock-based compensation The fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected price volatility is based on the historical volatilities of a peer group as the Company does not have a multi-year trading history for its shares. Industry peers consist of several public companies in the biotech industry similar to the Company in size, stage of life cycle and product indications. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of the Company’s own stock price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be utilized in the calculation. Expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus contract term. The risk-free rate is based on the 5-year U.S. Treasury yield curve in effect at the time of grant. The Company recognizes forfeitures as they occur. During the three months ended March 31, 2024, a total of 725,000 0.8 10 50 50 The following is option activity during the three months ended March 31, 2024. Schedule of Stock Option Activity Number of shares Weighted average exercise price per share Aggregate intrinsic value Outstanding as January 1, 2024 1,215,001 $ 5.00 - Options granted 725,000 $ 1.20 Forfeitures (151,667 ) $ 5.00 Outstanding as March 31, 2024 1,788,334 $ 4.07 $ - The estimated fair value of stock options on date of grant was $ 0.8 992,501 1.6 Key assumptions used to value stock options during the three months ended March 31, 2024, are as follows: Schedule of Key Assumptions Used to Value Stock Options Expected price volatility 151.17 152.45 % Risk-free interest rate 4.06 4.23 % Weighted average fair values $ 1.065 1.484 Weighted average expected life in years 5 6 Dividend yield - Warrants The Company has granted warrants to purchase shares of Common Stock. Warrants may be granted to affiliates in connection with certain agreements. As of March 31, 2024, a cumulative total of 1,763,570 warrants, with exercise prices ranging from $ 2.00 to $ 7.00 remain exercisable and outstanding. There were no warrants granted or exercised during the three months ended March 31, 2024. Earnings Per Share During the three months ended March 31, 2024 and 2023, outstanding stock options and warrants of 3,703,571 750,000 |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 8. Subsequent events The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three months ended March 31, 2024. |
Description of business and s_2
Description of business and summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Overview | Overview MIRA Pharmaceuticals, Inc., a Florida corporation (“we,” “us,” “our,” “MIRA,” or the “Company”), is a pre-clinical-stage pharmaceutical development company with two neuroscience programs targeting a broad range of neurologic and neuropsychiatric disorders. We hold exclusive license rights in the U.S., Canada and Mexico for Ketamir-2, a novel, patent pending oral ketamine analog under pre-clinical investigation to potentially deliver ultra-rapid antidepressant effects, providing hope for individuals battling treatment-resistant depression (“TRD”), major depressive disorder with suicidal ideation (MDSI), and potentially post-traumatic stress disorder (“PTSD”). Additionally, our novel oral pharmaceutical marijuana, MIRA-55, is currently under investigation for its potential to alleviate neuropathic pain, as well as anxiety and cognitive decline, symptoms often associated with early-stage dementia. MIRA-55, if approved by the U.S. Food and Drug Administration (“FDA”), could mark a significant advancement in addressing various neuropsychiatric, inflammatory, and neurologic diseases and disorders. The U.S. Drug Enforcement Administration’s (“DEA”) scientific review of Ketamir-2 concluded that it would not be considered a controlled substance or listed chemical under the Controlled Substances Act (“CSA”) and its governing regulations. Additionally, we have submitted the required paperwork for MIRA-55 to be evaluated by the DEA. We were incorporated under the laws of the State of Florida in September 2020 and commenced substantive operations, including our pharmaceutical development program, in late 2020. Our accounting and reporting policies conform to accounting principles generally accepted in the United States of America (“GAAP”). As used herein, the Company’s Common Stock, par value $ 0.0001 0.0001 |
Operating updates | Operating updates In early February 2024, we made a significant discovery during the manufacturing and scale-up process of our patented molecule known as “MIRA1a,” which we believed was the molecule used in our pre-clinical trials and had been synthesized by a contract manufacturer. Through this process, we identified a novel and improved version of the molecule, which we call MIRA-55. As part of our due diligence and subsequent testing, which began in late 2023, we discovered that the pre-clinical studies we conducted, previously attributed to MIRA1a, were in fact performed on MIRA-55. Following this revelation, in early March 2024, we promptly filed a provisional patent for MIRA-55, which encompasses all pre-clinical studies disclosed in our two registration statements on Form S-1, declared effective on August 2, 2023 and December 27, 2023 (File Nos. 333-273024 and 333-276118, respectively). If such patent is issued, we would own the patent rights to both MIRA1a and MIRA-55. Moreover, based on our pre-clinical analyses to date, we believe that MIRA-55 is an improvement over MIRA1a in that it displays enhanced potency and potential for efficacy. Additional testing is required to confirm our preliminary beliefs. However, based on our discoveries to date, we have decided to advance MIRA-55 as our lead compound for our oral pharmaceutical marijuana drug candidate while still retaining our rights to MIRA1a. As such, we do not intend to move MIRA1a forward as of the date of this Quarterly Report on Form 10-Q for the period ended March 31, 2024 (this “Report”). |
Initial public offering | Initial public offering On August 7, 2023, the Company closed its initial public offering consisting of 1,275,000 7.00 8.9 1.2 7.7 The shares were offered and sold pursuant to the Company’s Registration Statement on Form S-1, as amended (File No. 333-273024), originally filed with the Securities and Exchange Commission (the “SEC”) on June 29, 2023 (the “Registration Statement”) and the final prospectuses filed with the SEC pursuant to Rule 424(b) of the Securities Act of 1933, as amended. The Registration Statement was declared effective by the SEC on August 2, 2023. The common stock began trading on The Nasdaq Capital Market on August 3, 2023, under the symbol “MIRA”. The closing of the IPO occurred on August 7, 2023. |
Income taxes | Income taxes The Company is taxed as a C corporation. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years and for loss carryovers. A valuation allowance is recognized regarding deferred tax assets, if any, if it is more likely than not that some portion of the deferred tax asset will not be realized. |
Research and development expenses | Research and development expenses Research and development costs are expensed in the period in which they are incurred and include the expenses paid to third parties, such as contract research organizations and consultants, who conduct research and development activities on behalf of the Company. Patent-related costs, including registration costs, documentation costs and other legal fees associated with the application, are expensed in the period in which they are incurred. |
Leases | Leases The Company accounts for leases under the provisions of FASB ASC Topic 842, “Leases”, which requires the Company to recognize right-to-use (“ROU”) assets and lease liabilities for operating leases on the balance sheet. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of 270-10t assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results may differ from such estimates and such differences could be material. |
Cash | Cash The Company maintains cash balances with financial institutions that management believes are of high credit quality. The Company’s cash account at times may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk from its cash account. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation under the provisions of FASB ASC 718, “ Compensation - Stock Compensation |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company measures the fair value of financial instruments in accordance with GAAP which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company considers the carrying amount of deferred offering costs to approximate fair value due to short-term nature of this instrument. GAAP describes three levels of inputs that may be used to measure fair value: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable. Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions). |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Schedule of Lease Expense | The components of lease expense were as follows: Schedule of Lease Expense Three months ended March 31, Lease Costs 2024 2023 Operating Lease Cost Operating Lease $ 3,819 $ 205,682 Variable Lease Costs - 313,858 Total Lease Cost $ 3,819 $ 519,540 |
Schedule of Cash Flow Information Related to Leases | Supplemental cash flow information related to leases were as follows: Schedule of Cash Flow Information Related to Leases Three months ended March 31, Other Lease Information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,819 $ 519,540 |
Schedule of Remaining Weighted-average Lease Term and Weighted-average Discount Rate | Schedule of Remaining Weighted-average Lease Term and Weighted-average Discount Rate Three months ended March 31, 2024 2023 Lease Term and Discount Weighted Average remaining lease term 0.33 0.53 Weighted Average discount rate 5.0 % 5.0 % |
Schedule of Maturity of Lease Liabilities | Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Schedule of Maturity of Lease Liabilities Maturity of Lease Liabilities March 31, 2024 Remainder of 2024 $ 1,273 Less: Interest - Present Value of Lease Liabilities $ 1,273 |
Stockholders_ equity (Tables)
Stockholders’ equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | The following is option activity during the three months ended March 31, 2024. Schedule of Stock Option Activity Number of shares Weighted average exercise price per share Aggregate intrinsic value Outstanding as January 1, 2024 1,215,001 $ 5.00 - Options granted 725,000 $ 1.20 Forfeitures (151,667 ) $ 5.00 Outstanding as March 31, 2024 1,788,334 $ 4.07 $ - |
Schedule of Key Assumptions Used to Value Stock Options | Key assumptions used to value stock options during the three months ended March 31, 2024, are as follows: Schedule of Key Assumptions Used to Value Stock Options Expected price volatility 151.17 152.45 % Risk-free interest rate 4.06 4.23 % Weighted average fair values $ 1.065 1.484 Weighted average expected life in years 5 6 Dividend yield - |
Description of business and s_3
Description of business and summary of significant accounting policies (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Aug. 07, 2023 | Mar. 31, 2024 | Dec. 31, 2023 |
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Issuance of shares | 1,275,000 | ||
Share price | $ 7 | ||
Proceeds of issuance of IPO | $ 8.9 | ||
IPO [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Proceeds of issuance of IPO | 7.7 | ||
Underwriting commission and other offering expenses | $ 1.2 |
Liquidity and capital resourc_2
Liquidity and capital resources (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Liquidity And Capital Resources | |||
Cash | $ 3,528,695 | $ 4,602,566 | |
Net cash in operations | 1,049,536 | $ 1,075,306 | |
Stockholders deficit | $ 3,156,785 | $ 4,374,346 |
License agreement, related pa_2
License agreement, related party (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Nov. 15, 2023 | Aug. 07, 2023 | Mar. 31, 2024 | |
Issuance of common stock shares | 1,275,000 | ||
Miralogx Llc [Member] | |||
Non refundable payments | $ 0.1 | ||
Miralogx Llc [Member] | Common Stock [Member] | |||
Issuance of common stock shares | 700,000 | ||
Miralogx Llc [Member] | Warrant [Member] | |||
Warrants exercise price | $ 2 |
Debt, related party (Details Na
Debt, related party (Details Narrative) - USD ($) | 3 Months Ended | ||||
Aug. 14, 2023 | Jul. 20, 2023 | Mar. 31, 2024 | Nov. 15, 2023 | Apr. 30, 2023 | |
Miralogx Llc [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term borrowings | $ 3,000,000 | ||||
Interest rate | 8% | ||||
Bay Shore Trust [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding principal balance | $ 1,000,000 | $ 1,100,000 | $ 5,000,000 | ||
Issuance of common stock | 157,170 | ||||
Payment of accrued interest | $ 30,000 | ||||
Remaining amount of accrued interest | $ 0.01 | ||||
Bay Shore Trust [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7% |
Related party transactions (Det
Related party transactions (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||
Lease charges | $ 50,000 | $ 3,819 | $ 519,540 | |
Related party. travel cost | $ 50,000 | |||
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accounts receivable related party | $ 93,487 | $ 69,152 |
Schedule of Lease Expense (Deta
Schedule of Lease Expense (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases | |||
Operating Lease | $ 3,819 | $ 205,682 | |
Variable Lease Costs | 313,858 | ||
Total Lease Cost | $ 50,000 | $ 3,819 | $ 519,540 |
Schedule of Cash Flow Informati
Schedule of Cash Flow Information Related to Leases (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases | ||
Operating cash flows from operating leases | $ 3,819 | $ 519,540 |
Schedule of Remaining Weighted-
Schedule of Remaining Weighted-average Lease Term and Weighted-average Discount Rate (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases | ||
Weighted Average remaining lease term | 3 months 29 days | 6 months 10 days |
Weighted Average discount rate | 5% | 5% |
Schedule of Maturity of Lease L
Schedule of Maturity of Lease Liabilities (Details) | Mar. 31, 2024 USD ($) |
Leases | |
Remainder of 2024 | $ 1,273 |
Less: Interest | |
Present Value of Lease Liabilities | $ 1,273 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
MOLDOVA | |
Base rent | $ 1 |
Schedule of Stock Option Activi
Schedule of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Equity [Abstract] | |
Number of shares, Outstanding beginning balance | shares | 1,215,001 |
Weighted average exercise price per share, Outstanding beginning balance | $ / shares | $ 5 |
Aggregate intrinsic value, Outstanding | $ | |
Number of shares, Options granted | shares | 725,000 |
Weighted average exercise price per share, Options granted | $ / shares | $ 1.20 |
Number of shares, Forfeitures | shares | (151,667) |
Weighted average exercise price per share, Forfeitures | $ / shares | $ 5 |
Number of shares, Outstanding ending balance | shares | 1,788,334 |
Weighted average exercise price per share, Outstanding ending balance | $ / shares | $ 4.07 |
Aggregate intrinsic value, Outstanding | $ |
Schedule of Key Assumptions Use
Schedule of Key Assumptions Used to Value Stock Options (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Dividend yield | |
Minimum [Member] | |
Expected price volatility | 151.17% |
Risk-free interest rate | 4.06% |
Weighted average fair values | $ 1.065 |
Weighted average expected life in years | 5 years |
Maximum [Member] | |
Expected price volatility | 152.45% |
Risk-free interest rate | 4.23% |
Weighted average fair values | $ 1.484 |
Weighted average expected life in years | 6 years |
Stockholders_ equity (Details N
Stockholders’ equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Jun. 28, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Class of Stock [Line Items] | ||||
Capital stock, shares authorized | 110,000,000 | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||
Undesignated preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Reverse stock split | Effective June 28, 2023, we completed a 1-for-5 reverse stock split of our outstanding Common Stock. Unless otherwise noted, the share and per share information in this Report reflects the reverse stock split. | |||
Share-based compensation options to purchase common stock | 725,000 | |||
Share-based compensation options, granted value | $ 800 | |||
Option expiration period | 10 years | |||
Estimated fair value of stock options on date of grant | $ 800 | |||
Options exercisable | 992,501 | |||
Unrecognized compensation costs | $ 1,600 | |||
Share-Based Payment Arrangement, Option [Member] | ||||
Class of Stock [Line Items] | ||||
Computation of diluted earnings per share | 3,703,571 | 750,000 | ||
Warrant [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Outstanding | 1,763,570 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Exercised | 0 | |||
Computation of diluted earnings per share | 3,703,571 | 750,000 | ||
Warrant [Member] | Minimum [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2 | |||
Warrant [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 7 | |||
Board of Director and Consultant [Member] | ||||
Class of Stock [Line Items] | ||||
Share-based payment award, vesting rights, percentage | 50% | |||
Executive Officer [Member] | ||||
Class of Stock [Line Items] | ||||
Share-based payment award, vesting rights, percentage | 50% | |||
Undesignated Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Undesignated preferred stock, shares authorized | 10,000,000 |