Company: INDP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023333
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Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
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NOTE
1: GENERAL

Indaptus
Therapeutics, Inc. and its wholly-owned subsidiaries, Decoy Biosystems, Inc. and Intec Pharma Ltd., collectively (the “Company”),
is a biotechnology company dedicated to enhancing and expanding curative cancer immunotherapy for patients with unresectable or metastatic
solid tumors and lymphomas, which are responsible for more than 90% of all cancer deaths. The Company is developing a novel, multi-targeted
product that activates both innate and adaptive anti-tumor and anti-viral immune responses.

Risks
and uncertainties

The
Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited
to, the need for successful development of products, the need for additional capital (or financing) to fund operations (see below), competition
from substitute products and services from larger companies, protection of proprietary technology, patent litigation, and dependence
on key individuals.

Going
concern and management’s plans

The
Company has incurred net losses and utilized cash in operations since inception. For the six-month period ended June 30, 2025, the
Company incurred a net loss of approximately $9.8
million, and as of June 30, 2025, the Company had an accumulated deficit of approximately $70.2
million. In addition, during the six-month period ended June 30, 2025, the Company used approximately $9.1
million of cash in operations and expects to continue to incur significant cash outflows and incur future additional losses as
clinical trials and commercialization of the Company’s product candidates will require significant additional financing. The
Company believes that, as of the date of the issuance of these unaudited condensed consolidated financial statements, it has
adequate cash to fund its ongoing activities into the fourth quarter of 2025 based on its current operating plan. The Company plans
to execute its operating plan by obtaining additional capital, principally through entering into collaborations, strategic
alliances, or license agreements with third parties and/or additional public or private debt and equity financing. In February 2025,
the Company entered into a Standby Equity Purchase Agreement pursuant to which the Company has the right, but not the obligation, to
sell up to $20.0
million of the Company’s common stock during a 36-month period, subject to the restrictions and satisfaction of the conditions
in the Standby Equity Purchase Agreement (the “