Company: INDP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023333
Chunk: 11

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 11
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 of (i) the date that is 30 days from the effectiveness
of a reverse split effected by the Company on Nasdaq (i.e. July 27, 2025), and (ii) the one-year anniversary from the issuance of the
Notes.

On
July 27, 2025, the Notes automatically converted into an aggregate of 501,566
shares of the Company’s common stock, par value $0.01
per share, at a conversion price of $8.3024
per share, which represented 80%
of the average Nasdaq closing price of the Company’s common stock for the five trading days immediately preceding and
including the conversion date, subject to a maximum conversion price of $11.20
per share. In addition, for investors whose conversions would have exceeded ownership limits of 4.99%
or 9.99%,
the Company issued pre-funded warrants to purchase an aggregate of 190,795
shares of common stock which represent the portion that would otherwise exceed the applicable threshold. The pre-funded warrants
have substantially the same terms as the July 2025 Warrants (as defined below), except they are exercisable at $0.01
per share and do not have an expiration date.

In
connection with the automatic conversion of the Notes, the Company also issued to investors in the offering warrants to purchase an aggregate
of 1,384,722 shares of common stock (the “July 2025 Warrants”). The July 2025 Warrants are exercisable at a price of $8.3024
per share and have a term of five years, expiring on July 27, 2030.

Placement
agent fees and other offering-related expenses, totaling approximately $0.8 million, were recognized as general and administrative
expenses in the statement of operations. In addition, the Company issued to the placement agent and its designees warrants to
purchase an aggregate of 83,083
shares of common stock at an exercise price of $8.3024.
The placement agent warrants have substantially the same terms as the July 2025 Warrants, except they include a cashless exercise
feature and expire on the fifth anniversary of the issuance date.

The
Company made an irrevocable election to measure the Notes at fair value as it believes the fair value option provides a greater
ability to estimate the outcome of future events as facts and circumstances change, particularly with respect to changes in the fair
value of the common stock