Company: JUNS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024684
Chunk: 4

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 4
---
ed restricted stock 
     - 

    Warrants 
     1,359,375 

    Total 
     12,243,363 

Stock-Based
Compensation

The grant date fair value of
stock-based awards issued to employees, non-employees and members of the board of directors, determined using the Black-Scholes
option pricing model and ratably expensed over the requisite service period, which is generally the vesting term of the award. The
use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the
option, the expected volatility of the common stock, risk-free interest rates and future dividend yields.

    10

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE
30, 2025

Note
2 – Significant Accounting Policies, continued

Clinical
Trial Expenses

When
applicable in preparing financial statements, the Company estimates clinical trial-related expenses based on contracts with vendors,
clinical sites, and consultants. Because payment timing often differs from service delivery, the Company records expenses according
to actual service performance and trial progression, using discussions with internal staff and external providers. Estimates are
periodically adjusted as actual results become known. Accurate accruals depend on timely reporting from third-party vendors, and
differences between estimated and actual expenses, though not expected to be significant, may occur.

Fair
Value of Financial Instruments and Fair Value Measurements

The Company measures and presents financial instruments
at estimated Fair Value. Fair Value is defined as the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. Disclosures about the fair value of financial instruments
are based on pertinent information available to the Company at each reporting date.

Disclosures related to fair value are categorized
in a three level hierarchy (“Fair Value Hierarchy), generally based on whether the inputs to the valuation techniques utilized to
calculated fair value are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable
inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).

The three levels of the Fair Value Hierarchy
are briefly described as follows:

  ●
  Level