Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 1182

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 4
Chunk 1182
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daq Capital Market under the ticker symbol “JUNS”.
The Company sold 2,750,000 shares of its Common Stock to the underwriters and yielded proceeds of $9,725,213, net of underwriters and
other fees of $1,274,787.

Critical
Accounting Policies

Basis of Presentation

The financial statements of the Company have been
prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

Business Segments

The Company uses the “management approach”
to identify its reportable segments. The management approach requires companies to report segment financial information consistent with
information used by management for making operating decisions and assessing performance as the basis for identifying the Company’s reportable
segments. The Company has identified one single reportable operating segment. The Company manages its business on the basis of one operating
and reportable segment and derives revenues from selling its product and related services.

Use of Estimates

Preparing financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure
of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual
results could differ from those estimates, and those estimates may be material.

Changes in estimates are recorded in the period in
which they become known. The Company bases its estimates on historical experience and other assumptions, which include both quantitative
and qualitative assessments that it believes to be reasonable under the circumstances.

Significant estimates during the years ended December
31, 2024 and 2023, respectively, include valuation of stock-based compensation, uncertain tax positions, and the valuation allowance
on deferred tax assets.

Research
and Development

Research
and development costs are expensed as incurred. Costs for certain development activities, such as clinical trials, are recognized based
on an evaluation of the progress to completion of specific tasks using data such as subject enrollment, monitoring visits, clinical site
activations, or information provided to us by our vendors with respect to their actual costs incurred. Payments for these activities
are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the
financial statements as prepaid or accrued research and development expense, as the case may be. Total research and development costs
for the fiscal years ended December 31, 2024 and 2023 were $492,660 and $954,793, respectively.

91

Stock-Based