Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 69

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 69
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 facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements,
established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

Business Development Activities

The Company initiated
business development activities in the Asian region in 2021. The Company has a strong strategic interest in accelerating the drug
development and potential commercialization efforts of JOTROL in this market. Our Chairman & CEO, presented in person, our
company’s status and pipeline at the BIOHK 2023 conference in Hong Kong in September of 2023. The presentation led to several
follow-on meetings, and we have recently agreed to service agreements in the areas of business development, CMC (Chemistry,
Manufacturing, and Controls), regulatory affairs and clinical trial management. The Asian market is very large and hard to penetrate for a small company and we
believe that our strategy with these agreements is cost effective and have the possibility to accelerate an out-licensing deal in
the South-East Asian territories. However, there are no assurances that this approach will be successful.

The agreements executed are very similar in nature
that include an equity investment in our Company by the other party and in turn we issued equity in the form of shares of common
stock, in lieu of cash, for 3 years of services from each company.

The Company believes these agreements to be favorable
for both parties based on the cash position of the Company and the need for these activities to be executed and enabling the possibility
of a one or more out-licensing agreements in the territory.

27

Contractual Obligations

We do not have any long-term
capital lease obligations, operating lease obligations or long-term liabilities, except as follows:

Notes Payable to
Related Parties and Other Transactions

The Company’s Chief
Executive Officer (CEO) has loaned the Company working capital since inception. The balance of the loans to the CEO as of March 31, 2025
and December 31, 2024 and 2023 was $146,432, respectively. The loan is due on demand and accrues interest at 3% per year. Accrued interest
relating to the loan was $2,147 and $1,064 as of March 31, 2025 and December 31, 2024, respectively, and is included in accrued interest
on the accompanying balance sheets. The Company repaid a total of $100,000 during