Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 163

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 163
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 management for making operating decisions and assessing performance as the basis for identifying the Company’s reportable
segments. The Company has identified one single reportable operating segment. The Company manages its business on the basis of one operating
and reportable segment and derives revenues from selling its product and related services.

Use of Estimates

Preparing financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual
results could differ from those estimates, and those estimates may be material.

Changes in estimates are recorded in the period in
which they become known. The Company bases its estimates on historical experience and other assumptions, which include both quantitative
and qualitative assessments that it believes to be reasonable under the circumstances.

Significant estimates during the years ended December 31, 2024 and
2023, respectively, include valuation of stock-based compensation, uncertain tax positions, and the valuation allowance on deferred
tax assets.

Cash

The
Company considers all highly liquid investments that have maturities of three months or less when acquired to be cash equivalents.
As of December 31, 2024 and 2023, the Company invested a portion of cash balances in a high yield savings account, which are
included as cash equivalents on the balance sheets. As of December 31, 2024 and 2023, the cash balances exceed the FDIC
limit of $250,000
by $3,519,510 and
$0,
respectively.

Prepaid Contracts

Prepaid contracts generally represent service agreements
which the Company would receive services over a period of time and are expensed as the services are received. The Company’s prepaid contracts are related to service agreements that span over three years, therefore the expense will be recognized over the three year term. 

Prepaid
Expenses and Other Current Assets

Prepaid
expenses and other current assets generally represent payments made for goods or services to be received within one year and are expensed
as the related benefit is received.

Research
and Development

Research
and development costs are expensed as incurred. Costs for certain development activities, such as clinical trials, are recognized based
on an evaluation of the 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