Company: INDP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010099
Chunk: 3

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 3
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 resulting from obligations
under agreements with contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”),
and other outside service providers for which payment flows do not match the periods over which services or materials are provided to
the Company. Accruals are recorded 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.

    F-6

Recently
issued accounting pronouncements

In November
2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. This ASU
will require entities to provide enhanced disclosures, in a tabular format, related to certain expense categories included in the statement
of operations. The ASU aims to increase transparency and provide investors with more detailed information about the nature of expenses
reported on the face of the income statement. The new ASU is effective for annual reporting periods beginning after December 15, 2026
and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the
impact of the adoption of this standard on the related disclosures.

In December
2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures. This ASU does not change accounting for income taxes but
requires new disclosures focusing on two areas, the effective rate reconciliation and taxes paid. This new standard is effective for public
business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. 

NOTE 3: PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets are comprised
of the following:

SCHEDULE OF PREPAID EXPENSE AND OTHER CURRENT ASSETS 

    March 31, 2025  
    December 31, 2024 
  
    Prepaid insurance 
    $295,093  
    $506,489 
  
    Prepaid research and development