Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 125

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 125
---
 total revenues, total expenses,
and expenses by functional classification, using this information to make decisions on a company-wide basis. The Company views its operations
and manages its business in two operating segments: (i) the production and sale of premium nutritional supplements, and (ii) pharmaceutical
operations focused on the development of drug candidates.

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.

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. Changes in estimates are recorded in the period in which they become known.

Significant
estimates during the three and nine month periods ended September 30, 2025 and 2024 include valuation of share based arrangements and
those related to the recognition and disclosure of income taxes.

Cash

The
Company considers all highly liquid investments that have maturities of three months or less when acquired to be cash equivalents. From
time to time, the Company has cash and cash equivalent balances in excess of the FDIC insured limit of $250,000. As of September 30,
2025 cash and cash equivalent balances in excess of the FDIC limit totaled $468,589.

Prepaid
Contracts

Prepaid
contracts are related to certain agreements for which the services are being rendered by the counterparty over the three year term of
the agreement and the value of which is expensed ratably over that term. See further discussion in Note 6 - Stockholders’ Equity.

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
condensed consolidated financial statements as prepaid or accrued research and development expense, as the case may be.

    9

JUPITER
NEUROSCIENCES, INC.