Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 126

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 126
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NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
2 – Significant Accounting Policies, continued

Income
Taxes

The
Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis
of our assets and liabilities and the expected benefits of net operating loss carryforwards. The impact of changes in tax rates and laws
on deferred taxes, if any, applied during the 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 September 30, 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 stock
method, unless the effect would be anti-dilutive.

The
following table summarizes outstanding instruments at September 30, 2025 excluded from the computation of diluted EPS as to do so would
have been antidilutive:

 Schedule of Computation of Diluted Net Loss Per Share

    Common
    stock options 
     11,726,093 

Stock-Based
Compensation

The
grant date fair value of stock-based awards issued to employees, non-employees and members of the board of directors, determined using
the Black-Scholes option pricing model and ratably expensed over the requisite service period, which is generally the vesting term of
the award. 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, risk-free interest rates and future dividend yields.

    10

JUPITER
NEUROSCIENCES, INC.

NOTES