Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 19

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 19
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22

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 7 – Commitments and Contingencies,
continued

Licensing and Royalty Agreements - Aquanova
AG

In September  2016, the Company entered
into a Development, Collaboration and License Agreement (“License Agreement”) with Aquanova AG, a German company in the
field of development, manufacturing and selling of colloidal formulas. The License Agreement resulted in the creation of the
pharmaceutic product, JOTROL. The License Agreement remains in effect until product launch, which is undeterminable at this time. The
Chief Scientific Officer of the Company and the CEO of Aquanova are the joint inventors of JOTROL. Aquanova is the assignee on the
patents in the United States, the European Union, China and Japan whereas the Company is obligated to maintain the patents. The
License Agreement grants the Company ownership of any regulatory approvals as well as the sole and exclusive worldwide right to develop,
manufacture and commercialize all products, including JOTROL. Aquanova has been granted the exclusive license to conduct formulation
development and manufacturing.

The License Agreement defines various fees
due to Aquanova for product and formulation development and licensing of the products. The Company is obligated to pay Aquanova an
annual license fee of $75,000 in
the year and each year subsequent thereto the acceptance of the product formulation by both parties. Such annual license fee
requirement terminates in the year in which marketing authorization approval (“MMA”) is obtained in a single territory,
which as of March 31, 2024 has not been received. Upon receipt of MMA in each territory (e.g., United States, European Union, China,
Japan), the Company will be obligated to pay $200,000 to
Aquanova per territory in which an MMA approval obtained, up to a maximum of $600,000,
in aggregate. In addition, upon commercialization the Company will be obligated to pay Aquanova a royalty equal to 5%
of net sales, as defined, in each territory until the later of (i) ten years after the first commercial sale; (ii) the first date
there is no valid claim within the Aquanova patent rights; or (iii) the MMA expiration date in each territory. As of March 31, 2025
and December 31,