Company: INDP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023333
Chunk: 12

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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. As of June 30, 2025, the fair value of the Notes was $6.5
million based on total principal and accrued interest of approximately $5.7
million and an estimated conversion price of $9.27
based on 80% of the average closing price of the common stock for the five days prior to June 30, 2025. Accordingly, the Company
recognized an increase in the fair value of the Notes of approximately $0.8
million during the three and six months ended June 30, 2025.

NOTE
8: COMMITMENTS AND CONTINGENCIES

Litigation

From
time to time, the Company could become involved in disputes and various litigation matters that arise in the normal course of business.
These may include disputes and lawsuits related to intellectual property, licensing, contract law and employee relations matters. Periodically,
the Company reviews the status of significant matters, if any exist, and assesses its potential financial exposure. If the potential
loss from any claim or legal claim is considered probable and the amount of such potential loss can be estimated, the Company accrues
liability for the estimated loss. Legal proceedings are subject to uncertainties and the outcomes are difficult to predict. Because of
such uncertainties, accruals are based on the best information available at the time. As additional information becomes available, the
Company reassesses the potential liability related to pending claims and litigation.

Leases

Future
minimum annual lease payments and a reconciliation to the Company’s operating lease liability under the Company’s non-cancelable
operating lease as of June 30, 2025 were as follows:

 SCHEDULE OF MINIMUM LEASE PAYMENTS 

    Total minimum lease payments in 2025 
    $34,745 
  
    Less: amount representing interest 
     (372)
  
    Present value of operating lease liability 
     34,373 
  
    Less: current portion 
     (34,373)
  
    Operating lease liability, net of current portion 
    $- 

    F-11

The
Company recognized rent expense of $50,924 in each of the six months ended June 30, 2025 and 2024 respectively. The Company recognized
rent expense of $25,462 during each of the three months ended June 30, 2025 and 2024, respectively. Total cash payments for the operating
lease totaled $52,117 and $50,600 during the six months ended