Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1394

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 5
Chunk 1394
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 the IPO is not declared effective prior to the maturity date, none of the indebtedness shall convert
or be convertible into shares of Common Stock.

At
the time of execution, the Company recorded a debt discount of $257,650 based on the fair value of the embedded conversion feature of
Notes I, which was amortized into interest expense over term of Notes I, each with a maturity date of July 31, 2022. On August 6, 2022,
the Notes I were amended to extend the maturity date to January 31, 2023, and increase the interest rate to 5%. All other terms remain
the same as previously stated in Notes I. The impact of the amendment is prospective and increased accrued interest by $23,072 and is
included in accrued interest on the accompanying balance sheet. On February 2, 2023, the Notes I were amended to extend the maturity
date to December 31, 2023. During January 31, 2024, the Company and all Note I holders agreed to amend and extend the maturity date of
their notes to December 31, 2024. The holders waived any default under the original notes prior to the amendment date. With the amendments
the applicable interest rate to Notes I increased to 10% effective from January 1, 2024. The amendments were accounted for as a modification
and not an extinguishment of debt, therefore there was no gain recorded in the statement of operations.

    F-14

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
5 – Convertible Debt and Derivative Liability, continued

Convertible
Debt I

Upon
the closing of the IPO on December 4, 2024, the outstanding principal and all unpaid accrued interest, totalling $636,852, of the
Notes I converted into an aggregate of 227,447 share of common stock of the Company at $2.80, which is 70% of the offering price of $4.00.

Senior
Secured Note – Formerly Known as the Convertible Debt II

The
Note - On April 11, 2022, the Company entered into a securities purchase agreement with an accredited investor (the “Holder”).
Pursuant to the terms of the securities purchase agreement, the Company received aggregate gross proceeds of $1,000,000, less