Company: JUNS
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001261
Chunk: 931

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 2
Chunk 931
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 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 years ended December
31, 2024 and 2023, respectively, include valuation of stock-based compensation, uncertain tax positions, and the valuation allowance
on deferred tax assets.

Research
and Development

Research
and development costs are expensed as incurred. Costs for certain development activities, such as clinical trials, are recognized based
on an evaluation of the progress to completion of specific tasks using data such as subject enrollment, monitoring visits, clinical site
activations, or information provided to us by our vendors with respect to their actual costs incurred. Payments for these activities
are based on the terms of the individual arrangements, which may differ from the pattern of costs incurred, and are reflected in the
financial statements as prepaid or accrued research and development expense, as the case may be. Total research and development costs
for the fiscal years ended December 31, 2024 and 2023 were $492,660 and $954,793, respectively.

91

Stock-Based
Compensation

The
Company accounts for stock-based compensation in accordance with the provisions of Accounting Standards Codification (ASC) Topic 718,
Compensation—Stock Compensation, or ASC 718, which requires the recognition of expense related to the fair value of stock-based
awards in the statements of operations. For stock options issued to employees, non-employees and members of our board of directors for
their services on our board of directors, the Company estimates the grant-date fair value of options using the Black-Scholes option pricing
model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of
the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates, and,
for grants prior to our initial public offering, the value of the common stock. For awards subject to time-based vesting, the Company
recognized stock-based