Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 269

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 269
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 expenses with the period in which
services are performed and efforts are expended. The Company accounts for these expenses according to the progress of the trial as measured
by patient progression and the timing of various aspects of the trial. The Company determines accrual estimates based on estimates of
services received and efforts expended that take into account discussion with applicable personnel and outside service providers as to
the progress or state of consummation of trials. During the course of a clinical trial, the Company adjusts the clinical expense recognition
if actual results differ from its estimates. The Company makes estimates of the accrued expenses as of each balance sheet date based
on the facts and circumstances known at that time. The clinical trial accruals are dependent upon the timely and accurate reporting of
contract research organizations and other third-party vendors. Although the Company does not expect the estimates to be materially different
from amounts actually incurred, understanding of the status and timing of services performed relative to the actual status and timing
of services performed may vary and may result in reporting amounts that are too high or too low for any particular period.

Fair
Value of Financial Instruments and Fair Value Measurements

The
Company measures its financial assets and liabilities in accordance with US GAAP. For certain financial instruments, including cash and
cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amounts approximate fair value due to their
short maturities. Amounts recorded for notes payable, net of discount, and loans payable also approximate fair value because current
interest rates available for debt with similar terms and maturities are substantially the same.

The
Company follows accounting guidance for financial assets and liabilities. This standard defines fair value, provides guidance for measuring
fair value and requires certain disclosures. This standard does not require any new fair value measurements, but rather applies to all
other accounting pronouncements that require or permit fair value measurements. This guidance does not apply to measurements related
to share-based payments. This guidance discusses valuation techniques, such as the market approach (comparable market prices), the income
approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement
cost).

The
guidance utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into six broad
levels. The following is a brief description of those three levels:

Level
1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level
2: Inputs