As previously disclosed, on May 4, 2022, Mosaic ImmunoEngineering, Inc., entered into a License Agreement with Case Western Reserve University (?CWRU?). Under the Agreement, CWRU licensed to the Company the exclusive worldwide rights to develop and commercialize oncology treatments based on cowpea mosaic virus (CPMV), the core technology behind the Company?s lead immunotherapy candidate, MIE-101. Pursuant to the Agreement, the Company initially agreed to reimburse CWRU for all intellectual property fees incurred since inception of the portfolio in the amount of approximately $303,000, payable in four (4) equal quarterly installments beginning upon the sooner of (i) August 31, 2022 or (ii) upon the Company closing a financing in the amount of $5 million or more.

While CWRU has previously provided the Company with additional time to pay past due amounts owed under the Agreement beyond the initial August 31, 2022 due date, on March 22, 2024, the Company received a letter of termination from CWRU terminating the company's Agreement effective immediately due to the company's financial default. In addition, pursuant to the letter of termination, CRWU did not relieve them of any amounts past due under the Agreement and requested payment in full. As of December 31, 2023, the Company?s balance owed to CWRU increased to approximately $407,000 related to past due intellectual property fees.

Due to the company's limited cash position, the company does not have sufficient capital to pay amounts owed under the Agreement. They have been and are continuing to evaluate strategic options for the Company, which include bringing in additional capital allowing the Company to bring in more advanced product candidates as well as possible mergers or other business combinations. If they are not successful in exploring these or other strategic options, they may wind-down operations or liquidate and dissolve the Company.