Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 464

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 11
Chunk 464
---
ended to postpone the commencement of the principal from February 11, 2023 to May 31, 2023. The Company and the noteholder agreed to
a repayment plan on past due interest. In addition, the Company agreed to prepay in cash the aggregate principal amount of the Note II
of 120% (or 137.5% on or after the first six months from closing) plus any accrued interest on the sale of all the assets of the Company
and its subsidiaries, upon the Change of Control, or on a Qualified Offering. Upon default of Note II, the Company agrees to pay 137.5%
of the outstanding note principal, and accrued interest through maturity and all liquidation damages. As a result of the material modification,
the incremental fair value of the modified derivative was classified as a debt extinguishment. Due to the extension of the maturity date
of the convertible note, the fair value of the derivative liability increased. This resulted in the Company recording a loss on extinguishment
of debt of $670,419.

    F-15

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
5 – Convertible Debt and Derivative Liability, continued

Senior
Secured Note – Formerly Known as the Convertible Debt II, continued

On
September 22, 2023, Note II was amended to postpone the commencement of the principle to December 31, 2023. The Company and the noteholder
agreed to a repayment plan on past due interest. In addition, the Company agreed to prepay in cash the aggregate principal amount of
the Note II of 120% (or 150% on or after the first six months from closing) plus any accrued interest on the sale of all the assets of
the Company and its subsidiaries, upon the Change of Control, or on a Qualified Offering. Upon default of Note II, the Company agrees
to pay 150% of the outstanding note principal and accrued interest through maturity and all liquidation damages. In addition, upon closing
the Note Holder will receive 175% stock coverage. As a result of the material modification, the incremental fair value of the modified
derivative was classified as a debt extinguishment. Due to the extension of the maturity date of the convertible note, the fair value
of the derivative liability increased. This resulted in the Company recording a loss on extingu