Company: INDP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021759
Chunk: 52

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 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. Accordingly, the Company recognized an increase in the fair value of the Notes of approximately $1.15 million and $0.36
million during the nine and three months ended September 30, 2025, respectively. On July 27, 2025, the Company determined the fair value
of the Notes immediately prior to their conversion, based on the closing share price on that date and the number of shares to be issued.
Upon conversion, the Company reclassified the fair value of the Notes, approximately $6.8 million, from current liabilities to shareholders’
equity.

    F-11

NOTE
8: COMMITMENTS AND CONTINGENCIES

Litigation

From
time to time, the Company 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

Future
minimum annual lease payments and a reconciliation to the Company’s operating lease liability under the Company’s non-cancellable
operating lease as of September 30, 2025 were as follows:

 SCHEDULE OF MINIMUM LEASE PAYMENTS 

    Total minimum lease payments in 2025 
    $8,686 
  
    Less: amount representing interest 
     - 
  
    Present value of operating lease liability 
     8,686 
  
    Less: current portion 
     (8,686)
  
    Operating lease liability, net of current portion 
    $- 

The
Company recognized rent expense of $76,385
during the nine months ended September 30, 2025 and 2024 respectively. The Company recognized rent expense of $25,462
during each of the three months ended September 30,