Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1537

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 6
Chunk 1537
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. The License
Agreement II is for both parties to work jointly to develop an appropriate delivery system and conduct clinical trials for the purpose
of product approval in the treatment of Friedreich’s ataxia and worldwide commercialization by the Company. The License Agreement
II grants an exclusive worldwide license to the Company to use the MCRI know-how for developing, manufacturing and commercializing the
product for proposed treatment for Friedreich’s ataxia. MCRI is granted an irrevocable, royalty free, worldwide license to use
the product inventions and patent rights for internal research and development. Upon receipt of approval of the MMA in each territory
(e.g., United States, European Union, China, Japan), the Company will pay $100,000 to MCRI per each territory up to a maximum of $300,000.
MMA has not yet been received as of September 30, 2024. The Company shall pay MCRI a royalty of 1.5% of net sales in each territory until
the product is no longer sold in the respective territory.

Research
and Development Service Providers

In
addition to the services received under the licensing agreements noted above, a substantial portion of the research and development (“R&D”)
expense included in the statement of operations is incurred pursuant to short term service and consulting agreements with third party
providers for research, development, testing and manufacturing services. The agreements generally provide termination, at any time by
either party without cause, upon a 30-day written notice, unless otherwise disclosed below. There are no pending milestone payments due
as of December 31, 2024.

Service
Agreements

On
June 3, 2024, the Company entered into three 36-month
service agreements with three different entities. The Company issued an aggregate of 3,487,500 restricted
shares of common stock, 1,162,500 restricted
shares of common stock to each entity. The shares were to be registered upon an IPO as long as an IPO happens no later than March 31,
2025. Either party is able to terminate the respective agreement with no liability upon the occurrence of i) the Company
failing to raise at least $10 million in gross proceeds from an IPO prior to May 31, 2025, ii) if either party is involved in any illegal
activity or iii) at any time as long as both parties agree to it. The shares were registered in the IPO.

The Company initially will recognize
stock based