Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 595

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 3
Chunk 595
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 Company issue or sell to Yorkville more than 2,823,244
    shares of common stock (the “Exchange Cap”), which is 19.99% of the shares of common stock outstanding immediately prior
    to the execution of the SEPA, unless (i) the Company obtains stockholder approval to issue shares of common stock in excess of the
    Exchange Cap, or (ii) the average price of all applicable sales of common stock under the SEPA equals or exceeds $0.81722 per share
    (which represents the lower of (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) on the trading day immediately
    preceding the effective date or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for
    the five trading days immediately preceding the effective date). On February 12, 2025, the Company filed a Form S-1 covering
    the resale of up to 10,000,000 shares of common stock comprised of (i) 305,960 commitment shares, and (ii) up to 9,694,040 shares
    of common stock reserved for issuance and sale to Yorkville under the SEPA. The Form S-1 was declared effective on February 13, 2025.

NOTE
7: 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

On
October 1, 2021, the Company entered into a noncancelable two-year operating lease agreement for approximately 2,000 square feet of office
space in San Diego, California. The base rent was $7,999 per month with an increase of 3% after the