Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 4

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 4
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 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
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
2 – Significant Accounting Policies, continued

Clinical
Trial Expenses

When
applicable in preparing financial statements, the Company estimates clinical trial-related expenses based on contracts with vendors,
clinical sites, and consultants. Because payment timing often differs from service delivery, the Company records expenses according to
actual service performance and trial progression, using discussions with internal staff and external providers. Estimates are periodically
adjusted as actual results become known. Accurate accruals depend on timely reporting from third-party vendors, and differences between
estimated and actual expenses, though not expected to be significant, may occur.

Fair
Value of Financial Instruments and Fair Value Measurements

The
Company measures and presents financial instruments at estimated Fair Value. Fair Value is defined as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Disclosures
about the fair value of financial instruments are based on pertinent information available to the Company at each reporting date.

Disclosures
related to fair value are categorized in a three level hierarchy (“Fair Value Hierarchy”), generally based on whether the inputs
to the valuation techniques utilized to calculated fair value are observable or unobservable. Observable inputs reflect market data obtained
from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs
(Level 3 measurement).

The
three levels of the Fair Value Hierarchy are briefly described as follows:

    ●
    Level
    1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

    ●
    Level
    2: Inputs, other than quoted prices that are observable, either directly or indirectly. These include quoted prices for similar assets
    or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

    ●
    Level