Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 587

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 3
Chunk 587
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yield has been estimated to be zero.

The
Company has elected to recognize forfeitures as they occur.

Fair
value measurements

Fair
value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability
in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the
measurement date. The Company follows the established framework for measuring fair value and providing disclosures about fair value measurements.

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.

ASC
820, Fair Value Measurement, requires all entities to disclose the fair value of financial instruments, both assets and liabilities,
for which it is practicable to estimate fair value, and defines the fair value of a financial instrument as the amount at which the instrument
could be exchanged in a current transaction between willing parties. As of December 31, 2024, and 2023, the recorded values of cash and
cash equivalents, prepaid expenses, and accounts payable and other current liabilities approximate their fair values due to the short-term
nature of these items.

Recently
adopted accounting pronouncements

In
November 2023, the FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures. The FASB amended the guidance in ASC
280, Segment Reporting (“ASC 280”), to require a public entity to disclose significant segment expenses and other segment
items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss
and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures
and all the disclosures required under ASC 280. The guidance is applied retrospectively to all periods presented in financial statements
unless it is impracticable. This new guidance is effective for public business entities for annual periods beginning after December 15,
2023, and