Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 334

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 334
---
 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 year ended December 31, 2024, the Company incurred
a net loss of approximately $15.0 million, and as of December 31, 2024, the Company had an accumulated deficit of approximately $60.4
million. In addition, during the year ended December 31, 2024, the Company used approximately $12.3 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 consolidated financial statements, it has adequate cash to fund its ongoing activities into the second quarter of
2025 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, such as through the registered direct offerings and concurrent private placements that the Company completed
in August 2024 (the “August 2024 Offering”) and in November 2024 (the “November 2024 Offering”), and through
the private placement in January 2025 (the “January 2025 Offering”). Following these offerings, the Company raised a total
of approximately $6.3 million, net of placement agent and other offering expenses in the amount of approximately $1.1 million. For more
details, see Note 6(c), 6(d) and 6(e). In addition, 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 $20.0 million of
the Company’s common stock during a 36-month period, subject to the restrictions and satisfaction of the conditions in the
Standby Equity Purchase Agreement. For more details, see Note 6(f). However, there is no assurance that additional capital and/or
financing will be