Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 18

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 18
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ES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 7 – Commitments and Contingencies,
continued

Office Lease, continued

Lease expense related to leases with an
initial period of less than twelve months is expensed as incurred. Such short-term rental expense totaled $2,029 and
$4,210 for the three months ended March 31, 2025 and 2024, respectively, and is included in general and administrative expenses on the accompanying
condensed consolidated statements of operations.

Consulting Agreements

The Company utilizes various consultants and advisors
for clinical research, scientific advisory services and business strategies. Each consultant has an executed agreement in place defining
term, compensation, duties, confidentiality, intellectual property. The majority of the agreements have a 2-year term. Agreements are
evaluated for renewal upon expiration. Bonus provisions are at the discretion of the Company’s Board of Directors and are granted
on an individual agreement basis.

On December 15, 2024, the Company entered into
a Strategic Services Agreement (the “Dominant Treasure Agreement”) with Dominant Treasure Health Company Limited (“Dominant
Treasure”). Pursuant to the terms of the Dominant Treasure Agreement, Dominant Treasure agreed to provide certain services to the
Company to assist the Company in accelerating the Company’s desire to get its products developed and distributed in the Southeast
Asian market. In exchange for Dominant Treasure’s has services pursuant to the Dominant Treasure Agreement, the Company agreed
to pay Dominant Treasure a one-time payment of $2,300,000.
In addition, if Dominant Treasure is involved in generating negotiations and conclusion of a distribution agreement for the Company in
the countries of China (including Hong Kong), Singapore and Malaysia, the Company will pay Dominant Treasure a success fee of 5%
of any upfront and/or milestone payments to be received by the Company. If such an agreement includes a royalty payment to the Company,
Dominant Treasure will receive 5%
of such royalty payment. The Dominant Treasure Agreement has a term of 36
months and may be terminated at any time upon mutual agreement of the parties. The one-time payment of $2,300,000
was accounted for as a prepaid contract and expensed over three-year period. For the three months ended March 31, 2025 the Company
recorded consulting expense related to the Dominant Treasure agreement totaling $189,041.