Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 50

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 50
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income was $33,627 for the nine months ended September 30, 2025, compared to $138 for the nine months ended September 30, 2024. The increase
primarily reflects higher average cash balances and prevailing interest rates during 2025.

Interest
Expense

Interest
expense was $3,557 for the nine months ended September 30, 2025, compared to $217,821 for the nine months ended September 30, 2024, representing
a decrease of $214,264, or 98%. The significant decrease in the current period is due to the fact that none of these interest-bearing
obligations remained outstanding, as they were either repaid or converted in prior periods. As a result, the Company did not incur material
interest expense during the current period.

Loss
on Change in Fair Value of Derivative Liability

There
were no derivative liabilities during the nine months ended September 30, 2025. In the prior year period, the Company recognized a $53,257
loss from marking to market the variable conversion features embedded in its then outstanding convertible notes.

For
the nine months ended September 30, 2024, the Senior Secured Convertible Note was amended several times with materially different economics
thus requiring for the recording of debt as an extinguishment and re-recording the debt with the amended terms. This resulted in a loss
on extinguishment of debt in the nine month period ended September 30, 2024 of $951,868.

27

Liquidity
and Capital Resources; Plan of Operations

Our primary sources of capital have been (i) net proceeds received from
the sale of Common Stock, (ii) convertible debt, and (iii) net proceeds received from our IPO.

We
have generated no revenues from product sales since inception, incurred a net loss of $6,069,866 for the nine months ended September
30, 2025, accumulated negative cash flows from operating activities totaling $3,045,713 during that same period, and have an
accumulated deficit since inception totaling $32,091,995. Accordingly, management has concluded there is substantial doubt regarding
our ability to continue as a going concern for a period of at least twelve months as a result of our historical recurring losses,
negative operating cash flows from operations and our dependence on external financings. In addition, the report of our external
auditor with respect to their audit of our financial statements as of and for