Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 41

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 41
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 principal amount of $150,000
in connection with an investor relations settlement, maturing February
28, 2026 and a compounding 5%
annual interest rate. In December 2024, the then outstanding balance of Note III totaling $178,386 was fully repaid, which included
all then outstanding principal and accrued interest.

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JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 5 – Convertible Debt and Derivative
Liability, continued

Summary

During the three months ended March 31,
2024, interest expense of $46,948
is included in the accompanying 2024 condensed consolidated statement of operations, related to Notes I, II and III (collectively, the “Notes”), all of which were paid in full in December 2024.

Derivative Liability Pursuant to Convertible
Debt

Based
on the terms of conversion features of the Notes, the Company determined at the time of issuance that the conversion option represented
an embedded component of a host instrument, the notes, required to be separated from the host and accounted for separately as a derivative.
Accordingly, embedded conversion option was accounted for as a derivative liability and a corresponding debt discount at the date of
issuance. The balance of the derivative liability was adjusted to fair value, as determined using a Monte Carlo valuation model, through
earnings at each reporting date.

During the three months ended March 31,
2024, the Company recorded a loss totaling $37,711
relating to the change in the fair value of the derivative liability. There was no such gain or loss during the three months ended
March 31, 2025 as the Notes were paid in full in December 2024 which eliminated the related derivative liability.

Significant assumptions utilized in the determination of the fair value of derivative liabilities were as follows:

Schedule
of Fair Value Derivative Liability

    March 31, 2024  
  
    Dividend Rate 
     - 
  
    Term 
     0.25 
  
    Volatility 
     90%
  
    Risk-free rate 
     5.20%
  
    Probability of IPO 
     60%
  
    Derivative liability, measurement input 
     60%

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JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLID