Company: INDP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023333
Chunk: 38

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
---
 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 six-month period ended June 30, 2025, the
Company incurred a net loss of approximately $9.8
million, and as of June 30, 2025, the Company had an accumulated deficit of approximately $70.2
million. In addition, during the six-month period ended June 30, 2025, the Company used approximately $9.1
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 unaudited condensed consolidated financial statements, it has
adequate cash to fund its ongoing activities into the fourth 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. 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 (the “SEPA”). During the six-month period ended June 30, 2025, the Company
raised under the SEPA net proceeds of approximately $1.75 million, after deducting offering expenses in the amount of approximately
$0.1 million. For more details, see Note 6(c). In June 2025, the Company raised total gross proceeds of approximately $5.7 million through the issuance of convertible
notes. Placement agent fees and other offering-related expenses totaled approximately $0.8 million. For more details, see Note 7. However, there is no assurance that additional capital and/or financing
will be available to the Company, and even if available, whether it will be on terms acceptable to the Company or in the amounts
required. If the Company is unsuccessful in securing sufficient financing, it may need to delay, reduce, or eliminate its research
and development programs, which could adversely affect its business prospects, or cease operations.