Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1183

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 4
Chunk 1183
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Compensation

The
Company accounts for stock-based compensation in accordance with the provisions of Accounting Standards Codification (ASC) Topic 718,
Compensation—Stock Compensation, or ASC 718, which requires the recognition of expense related to the fair value of stock-based
awards in the statements of operations. For stock options issued to employees, non-employees and members of our board of directors for
their services on our board of directors, the Company estimates the grant-date fair value of options using the Black-Scholes option pricing
model. 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 consistent with the expected life of the option, risk-free interest rates, and,
for grants prior to our initial public offering, the value of the common stock. For awards subject to time-based vesting, the Company
recognized stock-based compensation expense, on a straight-line basis over the requisite service period, which is generally the vesting
term of the award. As of December 31, 2024 and 2023, stock-based compensation expenses totaled $1,840,908 and $1,198,579, respectively.

Clinical
Trial Expenses

As
part of the process of preparing our financial statements, the Company is required to estimate expenses resulting from obligations under
contracts with vendors, clinical research organizations and consultants and under clinical site agreements in connection with conducting
clinical trials. The financial terms of these contracts are subject to negotiations, which vary from contract to contract and may result
in payment flows that do not match the periods over which materials or services are provided under such contracts. The Company’s
objective is to reflect the appropriate trial expenses in the financial statements by matching those expenses with the period in which
services are performed and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured
by patient progression and the timing of various aspects of the trial. The Company determines accrual estimates based on estimates of
services received and efforts expended that take into account discussion with applicable personnel and outside service providers as to
the progress or state of consummation of trials. During the course of a clinical trial, the Company adjusts the clinical expense recognition
if actual results differ from its estimates. The Company makes estimates of the accrued expenses as of each balance sheet date based
on the facts and circumstances known at that time. The clinical trial accruals are dependent upon the timely and