Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 13

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 13
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 option represented
an embedded component of a host instrument, the notes, required to be separated from the host and accounted for separately as a derivative.
Accordingly, embedded conversion option was accounted for as a derivative liability and a corresponding debt discount at the date of
issuance. The balance of the derivative liability was adjusted to fair value, as determined using a Monte Carlo valuation model, through
earnings at each reporting date.

During the three months ended March 31,
2024, the Company recorded a loss totaling $37,711
relating to the change in the fair value of the derivative liability. There was no such gain or loss during the three months ended
March 31, 2025 as the Notes were paid in full in December 2024 which eliminated the related derivative liability.

Significant assumptions utilized in the determination of the fair value of derivative liabilities were as follows:

Schedule
of Fair Value Derivative Liability

    March 31, 2024  
  
    Dividend Rate 
     - 
  
    Term 
     0.25 
  
    Volatility 
     90%
  
    Risk-free rate 
     5.20%
  
    Probability of IPO 
     60%
  
    Derivative liability, measurement input 
     60%

    16

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 6 – Stockholders’ Equity

Common Stock

The Company is authorized to issue 125,000,000
shares of common stock and 5,000,000
shares of preferred stock. The Company had 33,103,860
shares of common stock issued and outstanding as of March 31, 2025. There was no
shares of preferred stock issued and outstanding as of March 31, 2025.

Initial Public Offering

In December 2024, the Company executed an
IPO in which it sold 2,750,000
shares of common stock, par value $0.0001
per share at a price of $4.00
per share for gross proceeds of $11
million before deduction of underwriting discounts and other related expenses.

Service Agreement

In June 2024, The Company entered into service agreements with three separate entities, each with a 36-month term. In connection therewith the Company issued an aggregate of 3,487,500 restricted
shares