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Jupiter Neurosciences, Inc. (NASDAQ:JUNS), a pharmaceutical company with a market capitalization of $357 million, has revised the compensation agreement for its Chief Financial Officer (CFO), as detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC). The company's stock has experienced significant volatility, with InvestingPro data showing a 98% return over the past year despite recent pullbacks.
The company, which specializes in pharmaceutical preparations and currently operates with moderate debt levels according to InvestingPro analysis, has entered into a new Scope of Work (SOW) with Titan Advisory Services LLC, the service provider through which Saleem Elmasri, the CFO, is contracted.
InvestingPro subscribers have access to 8 additional key insights about JUNS's financial health and market position. The new agreement, effective as of Monday, sets the monthly fee at $20,000 for the calendar year 2025, totaling an annual fee of $240,000.
This update follows a series of adjustments to the CFO's compensation. Initially, the Master Services Agreement (MSA) between Jupiter Neurosciences and Titan, signed on December 31, 2022, stipulated a monthly fee of $25,000.
However, on January 31, 2023, this amount was reduced to $20,000 per month, contingent upon the company raising an additional $1.5 million in capital. Subsequently, on December 18, 2023, a further reduction to $5,000 per month was agreed upon, retroactively effective from October 1, 2023, until the additional capital was raised. Following the end of this Reduction Period, the base salary was set to increase to 105% of the original agreement.
The December 2024 SOW also outlines that Titan may be eligible for cash bonuses and additional equity compensation at the discretion of Jupiter Neurosciences.
Jupiter Neurosciences, originally known as Jupiter Orphan Therapeutics, Inc., is incorporated in Delaware and has its principal executive offices in Jupiter, Florida. The company's common stock is traded on the Nasdaq Capital Market under the ticker symbol JUNS, with the stock currently trading at $10.86, between its 52-week range of $3.86 to $19.51.
InvestingPro analysis indicates the stock may be trading above its Fair Value, with additional metrics and insights available to subscribers. The full text of the December 2024 SOW is included as an exhibit to the 8-K filing, which provides the basis for this news report.
In other recent news, Jupiter Neurosciences has entered into a strategic agreement with Dominant Treasure Health Company Limited, aiming to expand its product distribution in Southeast Asia.
The agreement entails a one-time payment of $2.3 million to Dominant Treasure, along with a success fee equivalent to 5% of any upfront or milestone payments received by Jupiter Neurosciences from distribution agreements negotiated by Dominant Treasure. This partnership is set to last for 36 months, with the potential for termination by mutual agreement at any time.
In related developments, Greenridge Capital initiated coverage on Jupiter Neurosciences, giving a bullish Buy rating. The firm's confidence stems from the potential of Jupiter Neurosciences' JOTROL platform, based on resveratrol, a compound known for various proposed health benefits.
Greenridge Capital believes that the current valuation does not fully reflect the platform's worth, despite the company maintaining a moderate debt level and a 'GOOD' overall financial health score.
Jupiter Neurosciences plans to continue seeking grant and other non-dilutive funding opportunities to advance its product pipeline. Moreover, the company is exploring Traditional Chinese Medicine as a potential revenue stream.
Greenridge Capital's valuation approach involved market comparisons for each of Jupiter's five key products, using recent sales and acquisitions of similar products to support the valuation. The firm anticipates that forthcoming proof-of-concept studies will provide further data to refine the valuation of Jupiter Neurosciences.
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