Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 295

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 295
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 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 compensation expense from the effective date of the agreement through the date the obligations are met with the
remaining expense being amortized over the remaining term of the 36-months
per the services agreements. Upon the occurrence of the initial public offering the Company recorded stock based compensation
expense for services provided of $779,411,
and through December 31, 2024 the Company recorded an additional stock based compensation expense of $114,373
for a total stock based compensation expense of $893,784. The future stock based compensation expense as of December 31, 2024 is $3,744,591.

In
addition, each of the entities agreed to purchase 37,500
shares each of the Company’s common stock
at a price of $1.33
per share prior to the occurrence of the IPO
and these shares were registered in the IPO.

Note 9 – Segment Report

The Company’s Chief Executive Officer serves as the
CODM and evaluates the financial performance of the business and makes resource allocation