Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 393

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 10
Chunk 393
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4, the Company entered into a Strategic Services Agreement (the “Dominant Treasure Agreement”) with
Dominant Treasure Health Company Limited (“Dominant Treasure”). Pursuant to the terms of the Dominant Treasure
Agreement, Dominant Treasure agreed to provide certain services to the Company to assist the Company in accelerating the
Company’s desire to get its products developed and distributed in the Southeast Asian market. In exchange for Dominant
Treasure’s services pursuant to the Dominant Treasure Agreement, the Company agreed to pay Dominant Treasure a one-time
payment of $2,300,000.
In addition, if Dominant Treasure is involved in generating negotiations and conclusion of a distribution agreement for the Company
in the countries of China (including Hong Kong), Singapore and Malaysia, the Company will pay Dominant Treasure a success fee of 5%
of any upfront and/or milestone payments to be received by the Company. If such an agreement will include a royalty payment to the
Company, Dominant Treasure will receive 5%
of such royalty payment. The Dominant Treasure Agreement has a term of 36
months and may be terminated at any time upon mutual agreement of the parties. The one-time payment of $2,300,000
was accounted for as a prepaid contract and will be expensed over a three-year period. For the year ended December 31, 2024, the Company recorded prepaid contract expense of $54,612.

Executive
Employment Agreements

The
Company’s standard executive employment agreements have a stated term of six years. Per the agreements, employees are eligible
for a discretionary annual performance bonus, determined by the Board of Directors. If the Company terminates an employee without cause,
the employee is entitled to a pro-rated pay out of the annual performance bonus based on days worked in the fiscal year, severance of
twelve months of the base salary, and automatic vesting of unvested equity grants. If the employee terminates with good reason, as defined
in the employment contract, the employee is entitled to automatic vesting of unvested equity grants.

During
2020, the Company began consistently paying salaries at 50% of the salaries reflected in the respective employment agreements. As of
September 2021, the Company began paying full salaries. Throughout 2022, the Company returned to paying partial salaries and by October
2023 the company stopped paying 100% in an effort to conserve cash. See Note 3 – Related Party Transactions for details related
to forgiveness of accrued compensation