Company: JUNS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024684
Chunk: 22

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 22
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026,449, or 514%. The increase in research and development expenses was primarily driven
by costs incurred under a three-year service agreement associated with product development and distribution efforts in the Southeast
Asian market. The remainder of the increase relates to heightened R&D activities, specifically the procurement of clinical trial
supplies for our Parkinson’s disease program.

General
and Administrative Expenses

General
and administrative expenses were $2,576,690 for the six months ended June 30, 2025 compared to $928,028 for the six months ended
June 30, 2024, representing an increase of $1,648,662, or 178%. The increase is due to employees receiving their full salaries and
an accrual for a bonus in six months ended June 30, 2025 compared to the prior period. In addition, there was an increase in legal
and professional fees in the current period compared to the prior period as a direct result of the
Company being listed on a public exchange. Lastly, the increase in general and administrative expenses is attributed to an increase in
insurance expenses and consulting fees. Overall, this is a direct result of the Company expanding its operations in the
current period compared to the prior period.

Interest
Expense

Interest expense was $2,364 for the six months ended June 30, 2025, compared to $122,046 for the six months ended
June 30, 2024, representing a decrease of $119,682, or 98%. The significant decrease in the current period is due to the fact that none
of these interest-bearing obligations remain outstanding, as they were either repaid or converted in prior periods. As a result, the Company
did not incur material interest expense during the current period.

Loss
on Change in Fair Value of Derivative Liability

At
each quarter end during these years, the variable conversion options embedded in our convertible notes were marked to market, and the
change in fair value of the derivative was recorded as a loss of $63,142 for the six months ended June 30, 2024. There were no derivative
liabilities during the current period.

For
the six months ended June 30, 2024, the Senior Secured Convertible Note were amended several times with materially different
economics thus requiring for the recording of debt as an extinguishment and re-recording the debt with the amended terms. This
resulted in a loss on extinguishment of debt in the six month