Company: JUNS
Filing Date: 2025-11-26
Form Type: S-1
Source: 0001493152-25-025204
Chunk: 137

Company: JUPITER NEUROSCIENCES, INC.
Filing Date: 2025-11-26
Form: S-1
Chunk 137
---
 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.

Convertible Notes with Embedded Derivative Liabilities

The Company has entered into
convertible notes, some of which contain variable conversion options, whereby the outstanding principal and accrued interest may be converted,
by the holder, into shares of common stock at a fixed discount to the price of the common stock at or around the time of conversion upon
certain trigger events. The Company evaluates all its financial instruments to determine if those contracts or any potential embedded
components of those contracts qualify as derivatives to be separately accounted for in accordance with ASC 815-10 - Derivative and Hedging - Contract in Entity’s Own Equity. This accounting treatment requires that the carrying amount of any derivatives be
recorded at fair value at issuance and marked-to-market at each balance sheet date. In the event that the fair value is recorded as a
liability, as is the case with the Company, the change in the fair value during the period is recorded as either other income or expense.
Upon conversion, exercise or repayment, the respective derivative liability is marked to fair value at the conversion, repayment, or exercise
date and then the related fair value amount is reclassified to other income or expense as part of gain or loss on debt extinguishment.

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<div align='center'>DESCRIPTION OF BUSINESS</div>

Unless the context otherwise requires, “JNS,” “we,” “us,” “our,” or “the Company” refers to Jupiter Neurosciences, Inc., a Delaware corporation.

Business Overview

Jupiter Neurosciences, Inc.
is a clinical stage research and development company pursuing a dual-path