Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 12

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 12
---
.
In December 2024, following a successful IPO, the then outstanding principal and accrued interest totaling $636,852 Note
I converted into 227,447 shares
of common stock at $2.80 per
share.

 Convertible Debt II

In April 2022, the Company issued a senior
secured convertible note (“Note II”) and 514,403 shares of common stock for net proceeds of $977,333 ($1,000,000 less
origination costs and an embedded discount). Note II had an original principal of $1,111,111.
The original terms of Note II included, among other provisions, penalties and stock conversions at substantial discounts upon
default or qualified offerings. Various amendments were executed which extended principal repayment dates and increased repayment
premiums resulting in losses on debt extinguishment totaling $887,946
in 2023. In April 2024, Note II was further modified, removing the conversion feature, increasing principal to $1,377,778,
and extending the maturity, resulting in a gain on modification of $951,868 and
an increase to derivative liability of $407,494.
Note II was fully repaid in December 2024 for $2,102,797,
which included all then outstanding principal and accrued interest.

Convertible Debt III

In March 2023, the Company issued a
convertible note (“Note III”) with a 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.

    15

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