Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 35

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 35
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 they become known. The Company bases its estimates on historical experience and other assumptions, which include both quantitative
and qualitative assessments that it believes to be reasonable under the circumstances.

Significant estimates during the three months
ended March 31, 2025 and 2024, respectively, include valuation of stock-based compensation, uncertain tax positions, and the valuation
allowance on deferred tax assets.

Cash

The Company considers all highly liquid investments
that have maturities of three months or less when acquired to be cash equivalents. As of March 31, 2025 and December 31, 2024, the Company
invested a portion of cash balances in a high yield savings account, which are included as cash equivalents on the balance sheets. As
of March 31, 2025 and December 31, 2024, the cash balances exceed the FDIC limit of $250,000 by $2,456,469 and $3,519,510, respectively.

Prepaid Contracts

Prepaid contracts represent service
agreements which the Company will receive services over a period of time and are expensed as the services are received. The
Company’s prepaid contracts are related to service agreements that span over three years, over which time the expense will be
recognized. See further discussion in Note 6 - Stockholders’ Equity.

Research and Development

Research and development costs are expensed as
incurred. Costs for certain development activities, such as clinical trials, are recognized based on an evaluation of the progress to
completion of specific tasks using data such as subject enrollment, monitoring visits, clinical site activations, or information provided
to us by our vendors with respect to their actual costs incurred. Payments for these activities are based on the terms of the individual
arrangements, which may differ from the pattern of costs incurred, and are reflected in the condensed consolidated financial statements
as prepaid or accrued research and development expense, as the case may be.

    10

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 2 – Significant Accounting Policies,
continued

Income Taxes

The Company recognizes deferred tax assets and
liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities and the expected
benefits of net operating loss carryforwards. The impact of changes in tax rates and laws on deferred taxes, if any, applied during the