Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 347

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 347
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 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 first anniversary of the lease term
commencement, which was November 1, 2022.

On
April 19, 2023, the Company executed an amendment to the lease agreement to extend the lease through October 31, 2025. Accordingly, the
Company remeasured its operating lease liability under the agreement and recognized an incremental lease liability and right-of-use asset
of $236,506. The remeasurement was based on a 9% incremental borrowing rate.

    F-14

Future
minimum annual lease payments and a reconciliation to the Company’s operating lease liability under the Company’s noncancelable
operating lease as of December 31, 2024 are as follows:

 SUMMARY OF MINIMUM LEASE PAYMENTS 

    Total minimum lease payments in 2025 
    $86,862 
  
    Less: amount representing interest 
     (2,698)
  
    Present value of operating lease liability 
     84,164 
  
    Less: current portion 
     (84,164)
  
    Operating lease liability, net of current portion 
    $- 

The
Company recognized rent expense of $101,847 and $100,742 during the years ended December 31, 2024 and 2023, respectively. Total cash
payments for the operating lease totaled $101,705 and $99,254 during the years ended December 31,