Jupiter Neurosciences Inc(JUNS) - 2025 Q1 - Quarterly Report

PART I Financial Statements (unaudited) Unaudited Q1 2025 financial statements report a $1.53 million net loss, reduced assets, and raise substantial going concern doubts Unaudited Condensed Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $4.96 million, primarily due to reduced cash, with stockholders' equity falling to $3.06 million Condensed Consolidated Balance Sheet Data (unaudited) | Account | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Cash | $2,706,469 | $3,769,510 | | Total current assets | $3,611,328 | $4,650,263 | | Total assets | $4,962,826 | $6,202,409 | | Total current liabilities | $1,889,724 | $2,009,154 | | Total liabilities | $1,898,231 | $2,030,401 | | Total stockholders' equity | $3,064,595 | $4,172,008 | Unaudited Condensed Consolidated Statements of Operations For Q1 2025, the company reported a net loss of $1.53 million, an increase from $0.63 million in Q1 2024, driven by higher operating expenses Condensed Consolidated Statements of Operations (unaudited) | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Research and development | $466,745 | $98,667 | | General and administrative | $1,071,258 | $472,028 | | Loss from operations | ($1,538,003) | ($570,695) | | Net loss | ($1,528,867) | ($634,100) | | Net loss per share (Basic and diluted) | ($0.05) | ($0.02) | Unaudited Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) Stockholders' equity decreased from $4.17 million to $3.06 million in Q1 2025, primarily due to the net loss, partially offset by stock-based compensation - The company's total stockholders' equity decreased by approximately $1.1 million during the first quarter of 2025, moving from $4,172,008 to $3,064,595[22] - The primary drivers for the change in stockholders' equity were a net loss of $1,528,867 and non-cash stock-based compensation of $421,454[22] Unaudited Condensed Consolidated Statements of Cash Flows Net cash used in operating activities significantly increased to $1.06 million in Q1 2025, leading to a cash balance decrease from $3.77 million to $2.71 million Summary of Cash Flows (unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net cash flows from operating activities | ($1,063,041) | ($65,165) | | Net cash flows from financing activities | $0 | $45,000 | | Net Change in Cash | ($1,063,041) | ($20,165) | | Cash at end of period | $2,706,469 | $8,313 | Notes to the Unaudited Condensed Consolidated Financial Statements Notes detail the company's clinical-stage pharmaceutical business, express substantial doubt about going concern, and cover the December 2024 IPO, debt settlement, and strategic agreements - The company is a clinical-stage pharmaceutical company developing JOTROL, a unique resveratrol platform product, for neuro-inflammation indications like Parkinson's, Alzheimer's, Mucopolysaccharidoses Type 1, and Friedreich's Ataxia[26] - Management has expressed substantial doubt about the company's ability to continue as a going concern due to a history of net losses and negative operating cash flows[31][32] - In December 2024, the company completed an IPO, selling 2,750,000 shares at $4.00 per share for gross proceeds of $11 million[29][72] - All convertible notes were fully repaid or converted into common stock in December 2024, eliminating the associated derivative liability, with no such liabilities existing at March 31, 2025[61][62][63] - The company has a strategic services agreement with Dominant Treasure Health Company Limited, involving a one-time payment of $2.3 million (accounted for as a prepaid contract) to accelerate product development and distribution in the Southeast Asian market[90] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's clinical-stage focus on JOTROL, attributing the increased Q1 2025 net loss to higher R&D and G&A expenses, and reiterates substantial going concern doubts - The company's primary focus is on its platform product JOTROL for treating neuro-inflammation, with Parkinson's Disease as the main target indication, and a Phase IIa study expected to start in Q3 2025[101][104][105] - A $16.5 million grant application to the NIA for a Phase II trial in MCI/early Alzheimer's Disease was not approved, and studies for this indication are paused pending biomarker results from the Parkinson's trial[107] - In March 2025, the company partnered with Aquanova AG to develop and launch a series of nutritional products targeting longevity and aging, with a planned market entry in Q3 2025 via a Direct-to-Consumer model[110] Comparison of Operating Results (Q1 2025 vs Q1 2024) | Expense Category | Q1 2025 ($) | Q1 2024 ($) | Change Driver | | :--- | :--- | :--- | :--- | | R&D Expenses | $466,745 | $98,667 | Increased activity for Parkinson's program and costs for a service agreement for the SE Asian market | | G&A Expenses | $1,071,258 | $472,028 | Full salary payments post-IPO, and higher legal, professional, and insurance fees as a public company | | Interest Expense | $1,229 | $65,756 | Decrease due to the repayment and conversion of all convertible notes in December 2024 | - The company acknowledges substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows, and anticipates needing to raise significant additional capital to fund future operations[111][121][122] Quantitative and Qualitative Disclosures About Market Risk The company states this item is not applicable, indicating no significant exposure to market risks requiring disclosure - Not applicable[139] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Based on an evaluation as of March 31, 2025, the company's Certifying Officers concluded that disclosure controls and procedures were effective[140] - No material changes to the company's internal control over financial reporting occurred during the most recent fiscal quarter[142] PART II – OTHER INFORMATION Legal Proceedings The company is not currently involved in any material legal proceedings outside the ordinary course of business as of March 31, 2025 - The company may become involved in legal proceedings in the ordinary course of business, but as of the filing date, there are no material legal actions pending[83][144] Risk Factors The company refers investors to its Annual Report on Form 10-K for detailed risk factors, with no new or updated risks presented in this report - For a detailed discussion of risk factors, the company refers to its Annual Report on Form 10-K for the fiscal year ended December 31, 2024[146] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period covered by this report - None[147] Defaults Upon Senior Securities The company reported no defaults upon its senior securities - None[147] Mine Safety Disclosures This item is not applicable to the company - Not applicable[148] Other Information No director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer of the Company adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[149] Exhibits This section lists exhibits filed with Form 10-Q, including SOX certifications by the CEO and CFO, and Inline XBRL documents - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and various Inline XBRL files[150]