{"url_path":"/sec/juns/8-k/2026-07-21/item-1-01","section_key":"item-1-01","section_title":"Item 1.01 Entry Into a Material Definitive Agreement.**","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-21","source_url":"https://www.sec.gov/Archives/edgar/data/1679628/0001493152-26-034077-index.html","accession_number":"0001493152-26-034077","cik":"0001679628","ticker":"JUNS","issuer_name":"JUPITER NEUROSCIENCES, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1679628/0001493152-26-034077-index.html","primary_entity_key":"0001679628","primary_entity_name":"JUPITER NEUROSCIENCES, INC."},"word_count":1123,"has_tables":true,"body_markdown":"**Item\n1.01 Entry Into a Material Definitive Agreement.**\n\n* *\n\n*Strategic\nAsset License Agreement*\n\n \n\nReference\nis made to the Current Report on Form 8-K filed by Jupiter Neurosciences, Inc. (the “Company”) with the Securities and Exchange\nCommission (the “SEC”) on May 20, 2026 (the “Prior 8-K”), in which the Company disclosed its entry into a non-binding\nsummary of proposed terms with PharmAla Biotech Holdings Inc. (“PharmAla”) regarding a potential licensing transaction for\nPharmAla’s ALA-002 program for the United States. On July 20, 2026, the Company and PharmAla entered into a definitive Strategic\nAsset License Agreement (the “License Agreement”), the terms of which differ in certain respects from, and supersede, the\nnon-binding summary of proposed terms described in the Prior 8-K, except for binding provisions and escrow-related matters that remain\neffective until release of the escrow deposit described below.\n\n \n\nPharmAla\nis a Canadian biotechnology company engaged in the research, development and GMP production of MDXX-class psychedelics, including clinical-grade\nMDMA and novel analogues, and owns a proprietary investigational compound known as ALA-002. Jupiter is a clinical-stage pharmaceutical\ncompany focused on therapies for neuroinflammation and CNS disorders.\n\n \n\nPursuant\nto the License Agreement, PharmAla granted Jupiter an exclusive royalty-bearing, sublicensable (subject to restrictions on sublicenses\nto persons engaged in a competing business without PharmAla’s prior written consent) license under PharmAla’s licensed intellectual\nproperty (including patents, know-how and regulatory documentation) to develop, manufacture and commercialize products incorporating\nor derived from ALA-002 (each, a “Licensed Product”), for all human therapeutic, prophylactic, palliative, diagnostic and\nsupportive uses, solely in the United States of America, including its territories, possessions and commonwealths, and including Puerto\nRico (the “Territory”). The license also permits Jupiter to manufacture Licensed Products outside the Territory solely for\nimport and sale into the Territory. PharmAla retains all rights to ALA-002 and the licensed intellectual property outside the Territory.\nIn connection with the license, PharmAla has agreed to make available to the Company certain licensed know-how, manufacturing and analytical\ninformation, and regulatory documentation reasonably necessary or useful for the Company to develop, manufacture and commercialize Licensed\nProducts in the Territory.\n\n* *\n\n*Upfront\nConsideration*\n\n \n\nJupiter\nwill pay PharmAla an aggregate upfront payment of $3,333,333 (the “Upfront Payment”), comprised of (i) $1,500,000 in cash\n(the “Initial Cash Consideration”), less a $600,000 escrow deposit previously made under the May 19, 2026 escrow agreement,\nwhich will be released to PharmAla and credited dollar-for-dollar against the cash consideration, and (ii) $1,833,333 payable in shares\nof Jupiter common stock (the “Equity Consideration”). Jupiter may elect to pay all or any portion of the Equity Consideration\nin cash. The Initial Cash Consideration is payable as a condition precedent to the effective date of the License Agreement. The shares\nof common stock will be issued no later than 30 days after the effective date based on the volume-weighted average price (“VWAP”)\nof Jupiter’s shares of common stock for the 20 consecutive trading days ending on the trading day immediately preceding the issuance\ndate, subject to a Nasdaq 19.99% exchange cap unless stockholder approval is obtained. The License Agreement includes a VWAP reset mechanic\npursuant to which if the VWAP during the pricing window is less than the initial issuance price, Jupiter is required to issue additional\nshares (or, if the price falls below the Equity Floor Price, pay cash) to ensure PharmAla receives the full value of the Equity Consideration\n(the “VWAP Reset Mechanic”). The shares are subject to a 120-day lock-up period and registration rights, including Jupiter’s\nobligation to file a registration statement within 30 days following the issuance date.\n\n* *\n\n \n\n \n\n* *\n\n*Development\nMilestone Payments*\n\n \n\nJupiter\nwill pay PharmAla development milestone payments totaling up to $23,333,333, comprised of (i) $3,333,333 upon first dosing of the first\npatient in a Phase 3 clinical trial of a Licensed Product in the Territory (payable fifty percent (50%) in cash and fifty percent (50%),\nat PharmAla’s election, in cash or Jupiter Shares) and (ii) $20,000,000 upon first FDA approval of an NDA for a Licensed Product\n(payable in cash). Each development milestone payment is payable only once.\n\n* *\n\n*Commercialization\nMilestone Payments*\n\n \n\nJupiter\nwill pay PharmAla commercialization milestone payments totaling up to $73,333,333, comprised of (i) $10,000,000 upon first achievement\nof $333,333,333 in net sales in the Territory, (ii) $30,000,000 upon first achievement of $1,000,000,000 in net sales in the Territory,\nand (iii) $33,333,333 upon first achievement of $2,000,000,000 in net sales in the Territory. Each commercialization milestone payment\nis payable only once.\n\n* *\n\n*Royalties*\n\n \n\nBeginning\nwith the calendar quarter in which the third commercialization milestone becomes payable, Jupiter will pay PharmAla a royalty of 3% of\nnet sales of Licensed Products in the Territory during the term of the License Agreement.\n\n \n\nJupiter\nhas the exclusive right and obligation to develop Licensed Products in the Territory and must use commercially reasonable efforts, at\nits sole cost and expense, to develop, obtain regulatory approval for, and commercialize Licensed Products in the Territory, including\nconducting clinical trials, making regulatory filings, and achieving first commercial sale within six months following NDA approval.\nJupiter must also deliver quarterly progress reports to PharmAla during the development period.\n\n \n\nJupiter\nhas sole and exclusive responsibility for manufacturing ALA-002 and Licensed Products for use in the Territory. At Jupiter’s request,\nPharmAla will arrange supply of GMP-grade ALA-002 drug substance and/or drug product under a separate supply agreement to be negotiated\non customary terms.\n\n \n\nThe\nLicense Agreement was executed on July 20, 2026 and becomes effective upon satisfaction of specified conditions precedent, including\npayment of the Initial Cash Consideration and release of the escrow deposit to PharmAla. Unless earlier terminated, the License Agreement\ncontinues in perpetuity. Either party may terminate the License Agreement for an uncured material breach after a 90-day cure period (five\nBusiness Days for certain critical payment obligations, including the Upfront Payment, cash consideration payable as a condition to the\neffective date, and amounts payable in connection with the VWAP Reset Mechanic or the Nasdaq exchange cap, and 30 days for all other\npayment obligations). Either party may terminate immediately upon the other party’s insolvency or bankruptcy. PharmAla may terminate\nupon 90 days’ notice if Jupiter fails to achieve development milestones by applicable deadlines (subject to specified extensions)\nand such failure remains uncured. Jupiter may not consummate a change of control involving a competing business without PharmAla’s\nprior written consent, and PharmAla may terminate immediately if such a transaction is consummated without consent. Jupiter may terminate\nfor convenience upon at least 180 days’ prior written notice, without relieving accrued payment obligations.\n\n \n\n \n\n \n\n \n\nThe\nforegoing description of the License Agreement does not purport to be complete and is qualified in its entirety by reference to the full\ntext of the Strategic Asset License Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated\nherein by reference."}