Company: INDP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021759
Chunk: 40

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 40
---
Notes
to the unaudited condensed consolidated financial statements

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 nine-month period ended September 30, 2025,
the Company incurred a net loss of approximately $12.7 million, and as of September 30, 2025, the Company had an accumulated deficit
of approximately $73.2 million. In addition, during the nine-month period ended September 30, 2025, the Company used approximately $11.6
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 first quarter of 2026 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 million of the Company’s common
stock during a 36-month period, subject to the restrictions and satisfaction of the conditions in