Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 130

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 130
---
, the
Company resumed paying the executives for compensation as it was earned. The Company will make payments to reduce the balance of accrued
compensation, but only in the event the Company has available cash to do so without otherwise negatively impacting the Company’s
business plans.

On
July 2, 2025, the Compensation Committee of the Board of Directors (the “Compensation Committee”) approved the grant of
an aggregate of 357,448
stock options issued to certain executives with an exercise price equal to the closing price of the
Company’s Common Stock on the grant date, a ten-year term, and which vest in equal annual installments over a three-year
period, subject to continued employment. In addition, the Compensation Committee approved cash bonuses totaling $449,000
payable to certain officers and a third-party advisor for services render through December 31, 2024. However, the payment of such
amounts is contingent upon the Company maintaining cash on hand of at least $3,500,000.
Accordingly, no payments will be made until this condition is satisfied. The Company accrued for the liability as accrued
compensation as of September 30, 2025.

    13

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
5 – Convertible Debt and Derivative Liability

Convertible
Debt I

Between
August and December 2021, the Company issued convertible notes (collectively, “Notes I”) totaling $527,650, originally maturing
on July 31, 2022, with an interest rate of 1%. Notes I featured an automatic conversion feature upon an IPO into Common Stock at 70%
of the IPO price. Various amendments extended the maturity, ultimately to December 31, 2024, and increased the interest rate to 10%.
In December 2024, following a successful IPO, the then outstanding principal and accrued interest totaling $636,852 Notes I converted
into 227,447 shares of Common Stock at $2.80 per share.

Convertible
Debt II

On
April 11, 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