Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 5

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 5
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    3: Unobservable inputs in which little or no market data exists, therefore developed using estimates and assumptions developed by
    us, which reflect those that a market participant would use.

In
instances where the determination of the fair value measurement is based on inputs from different levels of the Fair Value Hierarchy,
the level in which the fair value of a financial instrument is classified is determined based on the lowest level input that is significant
to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value
measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The
carrying amounts reported in the condensed consolidated balance sheet for cash and cash equivalents, accounts receivable, accounts payable
and accrued liabilities approximate fair value based on the short-term maturity of these instruments. The amount reported in the condensed
consolidated balance sheet for note payable, related party approximates fair value as the interest rate substantially equivalent the
Company’s incremental borrowing rate for an instrument with similar terms and time to maturity.

See
Note 5 - Convertible Debt and Derivative Liability.

    11

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
2 – Significant Accounting Policies, continued

Derivative
Instruments

Derivative
instruments measured at fair value. Gains or losses resulting from changes in the fair value of derivatives instruments recorded as assets
or liabilities are recognized in earnings at each reporting period.

Leases

Operating
lease right-of-use (“ROU”) assets and related operating lease liabilities are recognized based on 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.at inception.
In the event an implicit interest rate is not present in the lease agreement, the Company utilizes its incremental borrowing rate at
lease inception in order to determine the present value. Short term leases with an initial term of less than twelve months are expensed
as incurred.

Note
3 – Related Party Transactions

Note
payable, related party

From 2023 through 2024, the Company’s Chief Executive Officer (CEO) loaned the Company working capital. The balance outstanding,
totaling $146,432 at both September 30, 2025 and December 31, 2024, is due on demand and accrues interest at 3% per annum. Accrued but