Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 91

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 91
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As
of the date of this Quarterly Statement on Form 10-Q, there are $4.0 million of Pre-Paid Advances outstanding under the SEPA, and there
may be additional amounts outstanding under the SEPA in the future. If our cash flow from operations is insufficient to meet our payments
under the SEPA, if not terminated and if and when available, or we are unable to offset amounts outstanding under the SEPA with the issuance
of shares of Common Stock, we would incur an event of default under the SEPA, in which case, all outstanding amounts would be immediately
due and payable. Any debt we incur from Yorkville or other parties could make us more vulnerable to a downturn in our operating results
or a downturn in economic conditions. If our cash flow from operations is insufficient to meet any debt service requirements or we incur
an event of default, we could be required to refinance our obligations, or dispose of assets in order to meet debt service requirements.

In
addition, any shares of Common Stock that we issue to Yorkville under the SEPA, if not terminated and if and when available, will further
dilute our current stockholders.

32

Risks
Related to the Launch of the Nugevia Brand

The
launch of the Nugevia brand exposes the Company to a number of business and operational risks that could materially and adversely impact
its business

The
launch of the Nugevia brand exposes us to a number of risks that could materially and adversely affect our business, financial condition,
and results of operations. Successfully introducing a new brand requires significant investment in marketing, product development, supply
chain management, and regulatory compliance, and there can be no assurance that Nugevia will achieve market acceptance or generate anticipated
sales. If we fail to execute the launch effectively, experience delays in product availability, or encounter challenges in maintaining
product quality and regulatory standards, our ability to establish Nugevia as a recognized and trusted brand may be compromised.

Additionally,
the introduction of Nugevia may provoke competitive responses from established market participants, potentially resulting in increased
pricing pressure or heightened marketing costs. If the Nugevia brand does not gain sufficient traction or if we are unable to recover
our investment in its development and promotion, our growth prospects and overall financial performance could be negatively impacted.

Our
business and future prospects with the Nugevia brand and our pharmaceutical products are significantly dependent on our exclusive, worldwide
license agreement with Aquanova. Any adverse development related to this