Company: JUNS
Filing Date: 2025-11-26
Form Type: S-1
Source: 0001493152-25-025204
Chunk: 136

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-26
Form: S-1
Chunk 136
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 progress to completion of specific tasks using data such as subject enrollment, monitoring visits, clinical site
activations, or information provided to us by our vendors with respect to their actual costs incurred. Payments for these activities are
based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the financial
statements as prepaid or accrued research and development expense, as the case may be. Total research and development costs for the fiscal
years ended December 31, 2024 and 2023 were $492,660 and $954,793, respectively.

Stock-Based Compensation

The Company accounts for stock-based
compensation in accordance with the provisions of Accounting Standards Codification (ASC) Topic 718, Compensation-Stock Compensation,
or ASC 718, which requires the recognition of expense related to the fair value of stock-based awards in the statements of operations.
For stock options issued to employees, non-employees and members of our board of directors for their services on our board of directors,
the Company estimates the grant-date fair value of options using the Black-Scholes option pricing model. The use of the Black-Scholes
option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility
of the common stock consistent with the expected life of the option, risk-free interest rates, and, for grants prior to our initial public
offering, the value of the common stock. For awards subject to time-based vesting, the Company recognized stock-based compensation expense,
on a straight-line basis over the requisite service period, which is generally the vesting term of the award. As of December 31, 2024
and 2023, stock-based compensation expenses totaled $1,840,908 and $1,198,579, respectively.

Clinical Trial Expenses

As part of the process of
preparing our financial statements, the Company is required to estimate expenses resulting from obligations under contracts with vendors,
clinical research organizations and consultants and under clinical site agreements in connection with conducting clinical trials. The
financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result in payment flows that
do not match the periods over which materials or services are provided under such contracts. The Company’s objective is to reflect
the appropriate trial expenses in the financial statements by matching those expenses with the period in which services are performed
and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured