Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 36

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 36
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years in which temporary differences are expected to be settled, is reflected in the financial statements in the period of enactment.
The measurement of deferred tax assets is reduced, if necessary, if, based on weight of the evidence, it is more likely than not that
some, or all, of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates
is recognized in the period that such tax rate changes are enacted. As of March 31, 2025 and December 31, 2024, the Company concluded
that a full valuation allowance is necessary for the net deferred tax assets.

Earnings Per Share of Common Stock

Basic earnings per share (“EPS”)
is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock
outstanding during each period. Diluted earnings per share includes the effect, if any, from the potential exercise or conversion of
securities, which would result in the issuance of incremental shares of common stock, using the treasury method.

The following table summarizes outstanding instruments which were not included in the computation of diluted EPS
as to do so would have been antidilutive:

Schedule of computation of diluted net loss
per share

    March 31, 2025  
    December 31, 2024 
  
    Common stock options 
     10,633,988  
     10,566,488 
  
    Unvested restricted stock 
     -  
     1,626,037 
  
    Warrants 
     1,359,375  
     1,359,375 
  
    Total 
     11,993,363  
     13,551,900 

Stock-Based Compensation

The Company recognizes expense related to the
grant date 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