Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 541

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 12
Chunk 541
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 entities. The Company issued an aggregate of 3,487,500 restricted
shares of common stock, 1,162,500 restricted
shares of common stock to each entity. The shares were to be registered upon an IPO as long as an IPO happens no later than March 31,
2025. Either party is able to terminate the respective agreement with no liability upon the occurrence of i) the Company
failing to raise at least $10 million in gross proceeds from an IPO prior to May 31, 2025, ii) if either party is involved in any illegal
activity or iii) at any time as long as both parties agree to it. The shares were registered in the IPO.

The Company initially will recognize
stock based compensation expense from the effective date of the agreement through the date the obligations are met with the
remaining expense being amortized over the remaining term of the 36-months
per the services agreements. Upon the occurrence of the initial public offering the Company recorded stock based compensation
expense for services provided of $779,411,
and through December 31, 2024 the Company recorded an additional stock based compensation expense of $114,373
for a total stock based compensation expense of $893,784. The future stock based compensation expense as of December 31, 2024 is $3,744,591.

In
addition, each of the entities agreed to purchase 37,500
shares each of the Company’s common stock
at a price of $1.33
per share prior to the occurrence of the IPO
and these shares were registered in the IPO.

Note 9 – Segment Report

The Company’s Chief Executive Officer serves as the
CODM and evaluates the financial performance of the business and makes resource allocation decisions on a consolidated basis. As a result,
the Company operates as a single reportable segment under ASC 280, Segment Reporting, defined by the CODM as JOTROL Drug Development.

The Company operates in one reportable segment, JOTROL Drug Development,
which includes all activities related to the development of JOTROL, to address unmet medical needs and improve the lives of patients.
The determination of a single reportable segment is consistent with the financial information regularly provided to the Company’s
CODM, who reviews and evaluates net loss for purposes of assessing performance, making operating decisions, allocating resources and planning
and forecasting for future periods. The measure of segment assets is reported on the balance sheet as total assets.

Note
10