Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 289

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 289
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 31, 2024, the Company had federal and state (post-apportioned basis) net operating losses (“NOLs”) of $26 million,
as well as federal orphan drug tax credit carryforwards of approximately $1.06 million. Approximately $10.0 million of the foregoing
federal and state NOLs will expire at various dates from 2026 through 2043, if not limited by triggering events prior to such time. Under
the provisions of the Internal Revenue Code, changes in ownership of the Company, in certain circumstances, would limit the amount of
federal NOLs that can be utilized annually in the future to offset taxable income. In particular, Section 382 of the Internal Revenue
Code (“Section 382”) imposes limitations on an entity’s ability to use NOLs upon certain changes in ownership. If the
Company is limited in its ability to use its NOLs in future years in which it has taxable income, then the Company will pay more taxes
than if it were otherwise able to fully utilize its NOLs. The Company may experience ownership changes in the future as a result of subsequent
shifts in ownership of the Company’s capital stock that the Company cannot predict or control that could result in further limitations
being placed on the Company’s ability to utilize its federal NOLs.

A
valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net
deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence.
This evidence includes, but is not limited to, prior earnings history, expected future earnings, carry-back and carry-forward periods
and the feasibility of ongoing tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset.
The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. As such,
it is generally difficult for positive evidence regarding projected future taxable income, exclusive of reversing taxable temporary differences,
to outweigh objective negative evidence of recent financial reporting losses. Based on these criteria and the relative weighting of both
the positive and negative evidence available, management continues to maintain a full valuation allowance against its net deferred tax
assets.

    F-22

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
8 – Commitments and Cont