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

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 market participants would use in pricing an asset
or a liability.

The
accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:

    Level
    1:
    Quoted
    prices in active markets for identical assets or liabilities.

    Level
    2:
    Inputs
    other than Level 1 prices for similar assets or liabilities that are directly or indirectly observable in the marketplace.

    Level
    3:
    Unobservable
    inputs which are supported by little or no market activity and values determined using pricing models, discounted cash flow methodologies,
    or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The
Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at
which to classify them for each reporting period. This determination requires significant judgments to be made by the Company.

As
of September 30, 2025 and December 31, 2024, the recorded values of cash and cash equivalents, prepaid expenses, accounts payable, and
accrued expenses and other liabilities approximated their fair values due to the short-term nature of these items.

    F-7

Convertible
notes

The
Company issued convertible notes during the nine months ended September 30, 2025 and elected to account for the debt at fair value.
Such fair value measurements are categorized within Level 3 of the fair value hierarchy. The changes in the fair value of the
convertible notes are recognized separately in the statement of operations for each reporting period. For more details, see Note
7.

The
following table summarizes the change in fair value of the Company’s Level 3 liabilities for the three and nine months ended
September 30, 2025:

 SCHEDULE OF CONVERTIBLE DEBT

    Convertible
                                                                               promissory notes 
  
    Fair value, January 1, 2025 
    $- 
  
    Additions 
     5,714,800 
  
    Change in fair value 
     1,153,421 
  
    Conversion of promissory notes into shares and warrants 
     (6,868,221)
  
    Fair value, September 30, 2025 
    $- 

    Convertible promissory notes 
  
    Fair value, July 1, 2025 
    $6,502,503 
  
    Change in fair value 
     365,