Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 40

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 40
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 executives agreed to defer payments for compensation all of
which was accrued. During December 2024, the Company returned to paying compensation to the executives upon the completion of
the initial public offering. The Company will continue to make payments related to the accrued compensation if the Company has available
cash to do so without otherwise negatively impacting the Company’s business plans.

    14

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 5 – Convertible Debt and Derivative
Liability

Convertible Debt I

Between August and December 2021, the
Company issued convertible notes (collectively, “Notes I”) totaling $527,650,
originally maturing on July
31, 2022, with an interest rate of 1%.
Notes I featured an automatic conversion feature upon an IPO into common stock at 70%
of the IPO price. Various amendments extended the maturity, ultimately to December 31, 2024, and increased the interest rate to 10%.
In December 2024, following a successful IPO, the then outstanding principal and accrued interest totaling $636,852 Note
I converted into 227,447 shares
of common stock at $2.80 per
share.

 Convertible Debt II

In April 2022, the Company issued a senior
secured convertible note (“Note II”) and 514,403 shares of common stock for net proceeds of $977,333 ($1,000,000 less
origination costs and an embedded discount). Note II had an original principal of $1,111,111.
The original terms of Note II included, among other provisions, penalties and stock conversions at substantial discounts upon
default or qualified offerings. Various amendments were executed which extended principal repayment dates and increased repayment
premiums resulting in losses on debt extinguishment totaling $887,946
in 2023. In April 2024, Note II was further modified, removing the conversion feature, increasing principal to $1,377,778,
and extending the maturity, resulting in a gain on modification of $951,868 and
an increase to derivative liability of $407,494.
Note II was fully repaid in December 2024 for $2,102,797,
which included all then outstanding principal and accrued interest.

Convertible Debt III

In March 2023, the Company issued a
convertible note (“Note III”) with a