Company: JUNS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024684
Chunk: 7

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 7
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. Prior to the
effectiveness of the Company’s IPO, in order to conserve cash, certain executives agreed to defer payment for compensation
earned, which was accrued. Upon the completion of the initial public offering in December 2024, the Company resumed paying the executives for compensation as it was earned. The Company will make
payments to reduce the balance of accrued compensation, but only in the event the Company has available cash to do so without
otherwise negatively impacting the Company’s business plans.

See Note 9 – Subsequent Events for details regarding the approval of cash bonuses cash bonuses payable to certain
officers.

    13

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE
30, 2025

Note
5 – Convertible Debt and Derivative Liability

Convertible
Debt I

Between
August and December 2021, the Company issued convertible notes (collectively, “Notes I”) totaling $527,650, originally maturing
on July 31, 2022, with an interest rate of 1%. Notes I featured an automatic conversion feature upon an IPO into common stock at 70%
of the IPO price. Various amendments extended the maturity, ultimately to December 31, 2024, and increased the interest rate to 10%.
In December 2024, following a successful IPO, the then outstanding principal and accrued interest totaling $636,852 Notes I converted
into 227,447 shares of common stock at $2.80 per share.

Convertible
Debt II

In
April 2022, the Company issued a senior secured convertible note (“Note II”) and 514,403 shares of common stock for net proceeds
of $977,333 ($1,000,000 less origination costs and an embedded discount). Note II had an original principal of $1,111,111. The original
terms of Note II included, among other provisions, penalties and stock conversions at substantial discounts upon default or qualified
offerings. Various amendments were executed which extended principal repayment dates and increased repayment premiums resulting in losses
on debt extinguishment totaling $887,946 in 2023. In April 2024, Note II was further modified, removing the conversion feature, increasing
principal to $1,377,778, and extending the maturity, resulting in a gain on modification of $951,868 and an increase to derivative liability
of $407,494