Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1763

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7A
Chunk 1763
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 an unfavorable
outcome in any specific period could have a material adverse effect on the Company’s results of operations for that period or future
periods.

On
July 19, 2022, Tiberend Strategic Advisors (“Tiberend”), an entity that the Company had previously engaged as a communications
and investor relations firm, filed a summons for civil action in the District Court of Southern Florida against the Company alleging
non-payment by the Company under a services agreement (the “Services Agreement”) with Tiberend in the amount of $130,400.
The Company and Tiberend entered into a full settlement and release agreement in exchange for a $150,000 convertible promissory note
in March 2023. As of December 31, 2024, the note was fully repaid. See Note 5 – Convertible Debt and Derivative Liability –
Convertible Debt III for details associated with the note issuance.

Office
Lease

On
May 1, 2021, the Company entered into a 61-month operating lease for office space for a base rent of $3,783 subject to a 3% yearly escalation.
The Company adopted ASC Topic 842, Leases upon inception of the lease.

As
of December 31, 2024 and 2023, the Company’s operating lease right-of-use asset, net (ROU) is $69,642 and $116,070, respectively,
and the total lease liability is $71,329 and $119,542, respectively, based on an incremental borrowing rate of 0.81% at lease inception.

Schedule
of Operating Lease Right-of-use Asset and  Liability

    December 31,  
    December 31, 

    2024  
    2023 
  
    Operating lease right-of-use asset (“ROU”) is summarized below: 

    Office lease ROU 
    $236,009  
    $236,009 
  
    Less accumulated reduction 
     (166,367) 
     (119,939)
  
    Balance of ROU, net 
    $69,642  
    $116,070 

    Operating lease liability related to the ROU asset is summarized below: 

    Office lease liability 
    $236,009  
    $236,009 
  
    Reduction of lease liability 
     (164,680) 
     (116,467)
  
    Total 
    $71,329