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

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 10
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 financial instruments to determine if those contracts or any potential embedded
components of those contracts qualified as derivatives to be separately accounted. There were no such liabilities at March 31, 2025 or December 31, 2024. See further discussion in Note 5 - Convertible
Debt and Derivative Liability.

Leases

Operating lease right-of-use
(“ROU”) assets represent the right to use the leased asset for the lease term and operating lease liabilities are
recognized based on the present value of future minimum lease payments over the lease term at the commencement date. As most leases
do not provide an implicit rate, the Company utilizes its incremental borrowing rate at lease inception in order to determine the
present value of future minimum lease payments over the expected term of the lease after taking into account the likelihood of
renewals and extensions. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is
included in general and administrative expenses in the accompanying condensed consolidated statements of operations.

Note 3 – Related Party Transactions

The Company’s Chief Executive Officer (CEO)
has loaned the Company working capital since inception. The balance of the loan payable to the CEO totaled $146,432 at both March 31,
2025 and December 31, 2024. The balance 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 condensed consolidated balance sheets.

    13

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 3 – Related Party Transactions,
continued

On March 15, 2024, a former executive agreed
to forgive $100,000
of accrued compensation in exchange for 49,605
options to purchase common stock and 7,500
restricted stock units (“RSUs”). The options to purchase common stock have a strike price of $1.33
and together with the RSUs had a grant date fair value of $60,000.
Accordingly, the Company recorded a gain on the forgiveness of accrued compensation in the amount of $40,000.

As of March 31, 2025 and December 31, 2023,