Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1844

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 1844
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 the offering price paid per share of at which the IPO is made. These securities are considered dilutive securities
which were excluded from the computation since the effect is anti-dilutive.

Stock-Based
Compensation

The
Company accounts for stock-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”)
Topic 718, Compensation—Stock Compensation, or ASC 718, which requires the recognition of expense related to the fair value of
stock-based awards in the statements of operations. For stock options issued to employees, non-employees and members of our board of
directors, the Company estimates the grant-date fair value of options using the Black-Scholes option pricing model. The use of the Black-Scholes
option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility
of the common stock consistent with the expected life of the option, risk-free interest rates, and, for grants prior to our initial public
offering, the value of the common stock. For awards subject to time-based vesting, the Company recognized stock-based compensation expense,
on a straight-line basis over the requisite service period, which is generally the vesting term of the award.

    F-9

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
2 – Significant Accounting Policies, continued

Clinical
Trial Expenses

As
part of the process of preparing our financial statements, the Company is required to estimate expenses resulting from obligations under
contracts with vendors, clinical research organizations and consultants and under clinical site agreements in connection with conducting
clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result
in payment flows that do not match the periods over which materials or services are provided under such contracts. The Company’s
objective is to reflect the appropriate trial expenses in the financial statements by matching those expenses with the period in which
services are performed and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured
by patient progression and the timing of various aspects of the trial. The Company determines accrual estimates based on estimates of
services received and efforts expended that take into account discussion with applicable personnel and outside service providers as to
the progress or state of consummation of trials. During the course of a clinical trial, the Company adjusts the clinical expense recognition
if