Company: JUNS
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001641172-25-024684
Chunk: 2

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 2
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 from the date of this report. The Company plans to finance future operations with proceeds from equity securities, grant awards and strategic collaborations. However,
there is no assurance that the Company will be able to affect transactions on commercially reasonable terms, if at all.

Business
Segment

Business segments are identified as components of an enterprise for which
separate discrete financial information is available for evaluation by the Company’s chief operating decision maker (“CODM”)
and relied upon when making decisions regarding resource allocation and assessing performance. When evaluating the Company’s financial
performance, the CODM reviews total revenues, total expenses, and expenses by functional classification, using this information to make
decisions on a company-wide basis. The Company views its operations and manages its business in two operating segments: (i) the production
and sale of premium nutritional supplements, and (ii) pharmaceutical operations focused on the development of drug candidates.

Use
of Estimates

Preparing
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues
and expenses during the reported period. Actual results could differ from those estimates, and those estimates may be material.

The Company bases its estimates on historical
experience and other assumptions, which include both quantitative and qualitative assessments that it believes to be reasonable under
the circumstances. Changes in estimates are recorded in the period in which they become known.

Significant
estimates during the three and six month periods ended June 30, 2025 and 2024 include valuation of share based arrangements and
those related to the recognition and disclosure of income taxes.

Cash

The
Company considers all highly liquid investments that have maturities of three months or less when acquired to be cash equivalents. From
time to time, the Company has cash and cash equivalent balances in excess of the FDIC insured limit of $250,000.
As of June 30, 2025 cash and cash equivalent balances in excess of the FDIC limit totaled $1,559,314.

Prepaid
Contracts

Prepaid
contracts are related to certain agreements for which the services are being rendered by the counterparty over the three year term
of the agreement and the value of which is expensed ratably over that term. See further discussion in Note 6 - Stockholders’
Equity.

Research
and Development

Research
and development costs are expensed as incurred. Costs for certain development activities