Company: INDP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021759
Chunk: 44

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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 based on estimates of services received and efforts
expended pursuant to agreements with CROs, CMOs, and other outside service providers. These estimates are typically based on contracted
amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers
as to the progress or stage of completion of the services. In the event advance payments are made to a CRO, CMO, or outside service provider,
the payments will be recorded as a prepaid expense, which will be amortized or expensed as the contracted services are performed.

Fair
Value Measurement

ASC
820, Fair Value Measurements, (“ASC 820”) provides guidance on the development and disclosure of fair value measurements.
Under this accounting guidance, fair value is defined as an exit price, representing the amount that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. As such, fair
value is a market-based measurement that should be determined based on assumptions that 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