New Risk • Apr 08
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 43% per year over the past 5 years. Shareholders have been substantially diluted in the past year (150% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Market cap is less than US$100m (US$43.3m market cap). Announcement • Mar 23
Mira Pharmaceuticals, Inc. Reports Mira-55 Shows No THC- or Rimonabant-Associated CNS Side Effects in Preclinical Studies MIRA Pharmaceuticals, Inc. is reporting new preclinical data evaluating the central nervous system (CNS) and behavioral effects of Mira-55 in a series of established assays commonly used to assess cannabinoid-related side effects. The study, conducted in collaboration with Pharmaseed, evaluated oral Mira-55 at doses of 10, 30, and 100 mg/kg and included comparisons to 9-tetrahydrocannabinol (THC) and the CB1 receptor antagonist rimonabant. The assessment included hypothermia, catalepsy, Elevated Plus Maze (EPM), and Open Field (OF) assays, which are commonly used to evaluate cannabinoid-related psychogenic, motor, and anxiety-like effects. Mira-55 did not produce cannabinoid-like psychogenic effects at any tested dose. No evidence of sedation, catalepsy, or motor impairment was observed. No anxiogenic effects were observed, in contrast to rimonabant, which demonstrated anxiety-like behavioral changes. In the Elevated Plus Maze (EPM), Mira-55 showed a dose-dependent increase in time spent in open arms, consistent with reduced anxiety-like behavior. In Open Field (OF) testing, Mira-55-treated groups were comparable to vehicle controls. Rimonabant-treated groups demonstrated reduced time spent in the center of the open field, a commonly used indicator of anxiety-like behavior, supporting the sensitivity of the experimental model. These findings build on previously reported preclinical data demonstrating that Mira-55 produced morphine-comparable analgesic effects in a validated model of inflammatory pain, reducing pain sensitivity and restoring thresholds to near-baseline levels, without opioid-related risks. The Company is advancing Mira-55 toward an Investigational New Drug (IND) submission for inflammatory pain and continues to conduct additional preclinical studies to support potential future clinical development. New Risk • Dec 19
New major risk - Revenue and earnings growth Earnings have declined by 38% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 38% per year over the past 5 years. Shareholders have been substantially diluted in the past year (153% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Currently unprofitable and not forecast to become profitable next year (US$11m net loss next year). Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (US$62.0m market cap). 
