Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 380

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 10
Chunk 380
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 F-15

JUPITER
NEUROSCIENCES, INC.

NOTES
TO FINANCIAL STATEMENTS

December
31, 2024 and 2023

Note
5 – Convertible Debt and Derivative Liability, continued

Senior
Secured Note – Formerly Known as the Convertible Debt II, continued

On
September 22, 2023, Note II was amended to postpone the commencement of the principle to December 31, 2023. The Company and the noteholder
agreed to a repayment plan on past due interest. In addition, the Company agreed to prepay in cash the aggregate principal amount of
the Note II of 120% (or 150% on or after the first six months from closing) plus any accrued interest on the sale of all the assets of
the Company and its subsidiaries, upon the Change of Control, or on a Qualified Offering. Upon default of Note II, the Company agrees
to pay 150% of the outstanding note principal and accrued interest through maturity and all liquidation damages. In addition, upon closing
the Note Holder will receive 175% stock coverage. As a result of the material modification, the incremental fair value of the modified
derivative was classified as a debt extinguishment. Due to the extension of the maturity date of the convertible note, the fair value
of the derivative liability increased. This resulted in the Company recording a loss on extinguishment of debt of $217,527.

On
April 29, 2024, the Company, the Holder of the Note II and the CEO entered into an amendment in which the CEO agrees to exchange 685,867
shares issued to the Holder in exchange for his related party notes that accrued interest at 3% that are due from the Company in an aggregate
principal amount of $266,667 and the Holder agreed to forfeit all rights to all additional future shares from the Company that would
of become due upon a qualified offering as well as the conversion option. Therefore, the principal amount of the note was increased to
$1,377,778 and the exchange debt follows the requirements of Note II. In addition, the Holder agreed to extend the note maturity date
to August 11, 2024. The note shall be designated as a 10% original issue discount secured note (“Senior Secured Note”) moving
forward. The Senior Secured Note and interest will become due and payable upon the earliest of the maturity date or upon the occurrence