Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1425

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 6
Chunk 1425
---
 to offer to prepay in cash the aggregate principal amount of the Note at 120% (or 125% on or after the first
six months from the closing; provided, however, if interest due and payable on January 31, 2023 is not paid in full, 130% on or after
the first six months from the closing) of the principal amount thereof plus any unpaid accrued interest to the date of repayment, on
the sale of all or substantially all of the assets of the Company and its subsidiaries, upon a Change of Control (as defined in the Note),
or on a Qualified Offering.

87

Upon
an Event of Default (as defined therein) interest shall accrue at 1 1/2% per month and the 125% (or 130% if interest due and payable
on January 31, 2023 is not paid in full) of principal and interest through maturity shall be due and payable. At the holder’s option
the holder shall be entitled to be paid in cash or after the Qualified Offering (as defined in the Purchase Agreement) common stock with
the conversion price of the common stock equal to a 30% discount to the lowest closing price of the common stock for the 20 prior trading
days.

On
February 6, 2023, the Note was amended to postpone the commencement of the principle to February 28, 2023. On March 6, 2023, the Note
was amended to postpone the commencement of the principal from February 11, 2023 to May 31, 2023. The Company and the note holder agreed
to a repayment plan on past due interest. In addition, the Company agreed to prepay in cash the aggregate principal amount of the Note
of 120% (or 137.5% on or after the first six months from closing) plus any accrued interest on the sale of all the assets of the Company
and its subsidiaries, upon the Change of Control, or on a Qualified Offering. Upon default of the Note the Company agrees to pay 137.5%
of the outstanding note principal, and accrued interest through maturity and all liquidation damages. As a result of the material modification,
the incremental fair value of the modified derivative was classified as a debt extinguishment. Due to the extension of the maturity date
of the convertible note, the fair value of the derivative liability increased. This resulted in the Company recording a loss on extinguishment
of debt of $670