Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 6

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 6
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 $1,721,604
and $27,550,996,
respectively.

The Company plans to finance future operations
with proceeds from equity securities, grant awards and strategic collaborations. However, there is no assurance that the Company will
be able to affect transactions on commercially reasonable terms, if at all. In management’s opinion, these conditions raise substantial doubt about the Company’s ability to
continue as a going concern for a period of at least twelve months from the date of this report.

Business Segment

Business segments are identified as components of an enterprise for which separate discrete financial information
is available for evaluation by the Company’s chief operating decision maker (“CODM”) and relied upon when making decisions
regarding resource allocation and assessing performance. When evaluating the Company’s financial performance, the CODM reviews 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 one operating segment.

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 three months
ended March 31, 2025 and 2024, respectively, include valuation of stock-based compensation, uncertain tax positions, and the valuation
allowance on deferred tax assets.

Cash

The Company considers all highly liquid investments
that have maturities of three months or less when acquired to be cash equivalents. As of March 31, 2025 and December 31, 2024, the Company
invested a portion of cash balances in a high yield savings account, which are included as cash equivalents on the balance sheets. As
of March 31, 2025 and December 31, 2024, the cash balances exceed the FDIC limit of $250,000 by $2,456,469 and $3,519,510, respectively.

Prepaid Contracts

Prepaid contracts represent service
agreements which the Company will receive services over a period of time and are