Company: JUNS
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010990
Chunk: 47

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 47
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 products developed and distributed in the Southeast
Asian market. In exchange for Dominant Treasure’s has 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 includes 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 expensed over three-year period. For the three months ended March 31, 2025 the Company
recorded consulting expense related to the Dominant Treasure agreement totaling $189,041.

    22

JUPITER NEUROSCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 7 – Commitments and Contingencies,
continued

Licensing and Royalty Agreements - Aquanova
AG

In September  2016, the Company entered
into a Development, Collaboration and License Agreement (“License Agreement”) with Aquanova AG, a German company in the
field of development, manufacturing and selling of colloidal formulas. The License Agreement resulted in the creation of the
pharmaceutic product, JOTROL. The License Agreement remains in effect until product launch, which is undeterminable at this time. The
Chief Scientific Officer of the Company and the CEO of Aquanova are the joint inventors of JOTROL. Aquanova is the assignee on the
patents in the United States, the European Union, China and Japan whereas the Company is obligated to maintain the patents. The
License Agreement grants the Company ownership of any regulatory approvals as well as the sole and exclusive worldwide right to develop,
manufacture and commercialize all products, including JOTROL. Aquanova has been granted the exclusive license to conduct formulation
development and manufacturing.

The License Agreement defines various fees
due to Aquanova for product and formulation development and licensing of the products. The Company is obligated to