Company: JUNS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023603
Chunk: 18

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 18
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ization
by the Company. Furthermore, License Agreement II grants an exclusive worldwide license to the Company to use the MCRI know-how for developing,
manufacturing, and commercializing the product candidate for proposed treatment for Friedreich’s ataxia. In turn, MCRI has been
granted an irrevocable, royalty free, worldwide license for the use any product inventions along with patent rights for internal research
and development. Upon receipt of approval of an MMA in each territory, as defined (e.g., United States, European Union, China, Japan),
the Company will be obligated to pay an approval fee of $66,000 per territory up to a maximum of $300,000 in aggregate, which has not
yet been received as of September 30, 2025. Pursuant to the terms of License Agreement II, upon commercialization, Company will pay a
royalty of 1.5% of net sales, as defined, in each territory to MCRI until such time as any product related to License Agreement II is
no longer sold in the respective territory.

    22

JUPITER
NEUROSCIENCES, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note
8 – Segment Report

The
Company’s Chief Executive Officer serves as the Chief Operating Decision Maker (“CODM”) and evaluates the financial
performance of the business and makes resource allocation decisions on a consolidated basis.

During
2025, the Company began evaluating a potential realignment of its operations into two reportable segments: (i) the production and sale of premium nutritional
supplements, and (ii) pharmaceutical operations focused on the development of drug candidates. However, as of September 30, 2025, the
CODM has not begun reviewing operating results separately for these activities for purposes of performance assessment or resource allocation.
The CODM continues to evaluate the Company’s financial performance on a consolidated basis, and the internal reporting structure does not provide discrete segment-level financial information.

Management
believes a transitional period is appropriate given the timing of these operational changes. Accordingly, the Company has concluded that
no change in reportable segments has occurred as of September 30, 2025. The Company will continue to monitor the CODM’s review
practices and internal reporting structure and will update segment disclosures in future periods if and when discrete financial information
is regularly reviewed at the segment level.

In accordance with ASC 280-10-50-34,