Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 8

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 8
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447 shares of Common Stock at $2.80 per share.

Convertible
Debt II

On
April 11, 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. On April 24, 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.
Note II was fully repaid in December 2024 for $2,102,797,
which included all outstanding principal and accrued interest.

Convertible
Debt III

On March 1, 2023, the Company issued a convertible note (“Note III”) with a principal amount of $150,000 in connection with an
investor relations settlement, maturing February 28, 2026 and a compounding 5% annual interest rate. In December 2024, the then outstanding
balance of Note III totaling $178,386 was fully repaid, which included all then outstanding principal and accrued interest.

    14

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
5 – Convertible Debt and Derivative Liability, continued

Interest

During
the three and nine months ended September 30, 2024, interest expense of $96,924 and $186,906, respectively, is included in the accompanying
2024 condensed consolidated statement of operations, related to Notes I, II and III (collectively, the “Notes”), all of which
were paid in full in December 2024.

Embedded
Derivative

Based
on the terms of the Notes, the Company determined, at the time of issuance, that the conversion option represented an embedded component
of a host instrument, the Notes, and was required to be accounted for separately as a derivative financial instrument