Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 9

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 9
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. Accordingly, the
Company recorded the value of the embedded conversion option as a derivative liability with a corresponding discount to the face value
of the Notes at the time of issuance. Thereafter, the derivative liability was measured at fair value, as determined using a Monte Carlo
valuation model, at each reporting date and changes in fair value were recognized through earnings.

During
the second quarter of 2024, the terms of Note II were modified including the terms of the conversion option accounted for as a derivative
liability. In connection therewith, the fair value of the derivative liability was measured based on the modified terms and as a result
of that remeasurement, the Company recorded a gain totaling $951,868, which is included in other income in the accompanying 2024 statement
of operations.

During
the three and nine months ended September 30, 2024, the Company recorded a loss totaling $9,885 and $53,257, respectively, relating to
the change in the fair value of the derivative liability. There was no such gain or loss during the three or nine months ended September
30, 2025 as the Notes were paid in full in December 2024 eliminating the related derivative liability.

Significant
assumptions utilized in the determination of the fair value of derivative liabilities utilizing a Monte Carlo valuation model were as
follows:

 Schedule of Fair Value Derivative Liability

    September
                                            30,  2024 
  
    Dividend
    Rate 
     - 
  
    Term 
     0.13 
  
    Volatility 
     90%
  
    Risk-free
    rate 
     5.0%
  
    Derivative liability, measurement input 
     60%

    15

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
6 – Stockholders’ Equity

Common
Stock

The
Company is authorized to issue 125,000,000 shares of Common Stock and 5,000,000 shares of preferred stock. The Company had 34,294,546
shares of Common Stock issued and outstanding as of September 30, 2025. There were no shares of Preferred Stock issued and outstanding
as of September 30, 2025.

During
the nine months ended September 30, 2025, the Company issued 103,186 shares of Common Stock, with an aggregate fair value