Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 517

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 12
Chunk 517
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 as either other income or expense. Upon conversion, exercise or repayment, the respective derivative liability is marked
to fair value at the conversion, repayment, or exercise date and then the related fair value amount is reclassified to other income or
expense as part of gain or loss on debt extinguishment.

    F-11

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
2 – Significant Accounting Policies, continued

Leases

In
February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). The updated guidance
requires lessees to recognize lease assets and lease liabilities for most operating leases. In addition, the updated guidance requires
that lessors separate lease and non-lease components in a contract in accordance with the new revenue guidance in ASC 606.

Operating
lease ROU assets represent the right to use the leased asset for the lease term and operating lease liabilities are recognized based
on the present value of future minimum lease payments over the lease term at commencement date. As most leases do not provide an implicit
rate, the Company use an incremental borrowing rate based on the information available at the adoption date in determining the present
value of future payments. Lease expense for minimum lease payments is amortized on a straight-line basis over the lease term and is included
in general and administrative expenses in the statements of operations.

Recent
Accounting Pronouncements

The
Company has reviewed the FASB issued ASU accounting pronouncements and interpretations thereof that have effectiveness dates during the
periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted
accounting principles and do not believe that any new or modified principles will have a material impact on the Company’s reported
financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company’s
financial management.

In
August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging
– Contracts in Entity’s Own Equity (Subtopic 815-40) – Accounting for Convertible Instruments and Contracts in an Entity’s
Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GA