Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1743

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7A
Chunk 1743
---
 F-10

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
2 – Significant Accounting Policies, continued

Fair
Value of Financial Instruments and Fair Value Measurements, continued

The
following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at each reporting
period for each fair value hierarchy level:

Schedule
of Fair Value Hierarchy Level
Financial Instruments

    Derivative
                                            Liability December
                                            31, 2024  
    Derivative
                                            Liability December
                                            31, 2023 
  
    Level I 
    $-  
    $- 
  
    Level II 
    $-  
    $- 
  
    Level III 
    $-  
    $1,505,398 
  
    Total 
    $-  
    $1,505,398 

Also
see Note 5 - Convertible Debt and Derivative Liability.

Derivative
Instruments

ASC
Topic 815, Derivatives and Hedging (“ASC Topic 815”), establishes accounting and reporting standards for derivative instruments
and for hedging activities by requiring that all derivatives be recognized in the balance sheet and measured at fair value. Gains or
losses resulting from changes in the fair value of derivatives are recognized in earnings. On the date of conversion or payoff of debt,
the Company records the fair value of the conversion shares, removes the fair value of the related derivative liability, removes any
discounts and records a net gain or loss on debt extinguishment. On January 1, 2020, the Company adopted ASU 2017-11 under which down-round
Features in Financial Instruments will no longer cause derivative treatment. The Company applies the modified prospective method of adoption.
There were no cumulative effects on adoption.

Convertible
Notes with Embedded Derivative Liabilities

The
Company has entered into convertible notes, some of which contain variable conversion options, whereby the outstanding principle and
accrued interest may be converted, by the holder, into shares of common stock at a fixed discount to the price of the common stock at
or around the time of conversion upon certain trigger events. The Company evaluates all its financial instruments to determine if those
contracts or any potential embedded components of those contracts qualify as derivatives to be separately accounted for in accordance
with ASC 815-10 – Derivative and Hedging –