Company: JUNS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024684
Chunk: 16

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 16
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 for developing,
manufacturing, and commercializing the product candidate for proposed treatment for Friedreich’s ataxia. In turn, MCRI has been
granted an irrevocable, royalty free, worldwide license for the use any product inventions along with patent rights for internal research
and development. Upon receipt of approval of an MMA in each territory, as defined (e.g., United States, European Union, China, Japan),
the Company will be obligated to pay an approval fee of $66,000 per territory up to a maximum of $300,000 in aggregate, which has not
yet been received as of June 30, 2025. Pursuant to the terms of License Agreement II, upon commercialization, Company will pay a royalty
of 1.5% of net sales, as defined, in each territory to MCRI until such time as any product related to License Agreement II is no longer
sold in the respective territory.

Note
8 – Segment Report

The Company’s Chief Executive
Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial performance of the business and
makes resource allocation decisions on a consolidated basis.

During 2025, the Company began to transition
its operation into two reportable segments: (i) the production and sale of premium nutritional supplements, and (ii) pharmaceutical operations
focused on the development of drug candidates. However, as of June 30, 2025, the CODM has not begun reviewing operating results separately
for these activities for purposes of performance assessment or resource allocation. The CODM continues to evaluate the Company’s
financial performance on a consolidated basis, and the internal reporting structure has not been modified to provide discrete segment-level
financial information.

Management believes a transitional period is
appropriate given the timing of these operational changes. Accordingly, the Company has concluded that no change in reportable segments
has occurred as of June 30, 2025. The Company will continue to monitor the CODM’s review practices and internal reporting structure
and will update segment disclosures in future periods if and when discrete financial information is regularly reviewed at the segment
level.

In accordance with ASC 280-10-50-34,
if or when a change in reportable segments occurs in a future period, the Company will recast prior-period segment
disclosures retrospectively to reflect the new segment structure historic segment information on the same basis as
then reported.

Note
9 – Subsequent Events

On