Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 37

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 37
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, on a straight-line basis over the requisite service period, which is generally the vesting
term of the award.

    11

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 2 – Significant Accounting Policies,
continued

Clinical Trial Expenses

In preparing financial statements, the Company estimates clinical trial-related expenses based on contracts with
vendors, clinical sites, and consultants. Because payment timing often differs from service delivery, the Company records expenses according
to actual service performance and trial progression, using discussions with internal staff and external providers. Estimates are periodically
adjusted as actual results become known. Accurate accruals depend on timely reporting from third-party vendors, and differences between
estimated and actual expenses, though not expected to be significant, may occur.

Fair Value of Financial Instruments and Fair
Value Measurements

The Company measures its financial assets and
liabilities in accordance with US GAAP. For certain financial instruments, including cash and cash equivalents, accounts receivable, accounts
payable and accrued liabilities, the carrying amounts approximate fair value due to their short maturities. Amounts recorded for notes
payable, net of discount, and loans payable also approximate fair value because current interest rates available for debt with similar
terms and maturities are substantially the same.

The Company follows accounting guidance for financial
assets and liabilities. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures.
This standard does not require any new fair value measurements, but rather applies to all other accounting pronouncements that require
or permit fair value measurements. This guidance does not apply to measurements related to share-based payments. This guidance discusses
valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash
flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost).

The guidance utilizes a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure fair value into six broad levels. The following is a brief description
of those three levels:

Level 1: Observable inputs such as quoted prices
(unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs, other than quoted prices that
are observable, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted
prices for identical or similar assets or liabilities in markets