Company: INDP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010099
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Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
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Notes to the unaudited condensed consolidated financial
statements

NOTE 1: GENERAL

Indaptus Therapeutics, Inc. and its wholly-owned subsidiaries,
Decoy Biosystems, Inc. and Intec Pharma Ltd., collectively (the “Company”), is a biotechnology company dedicated to enhancing
and expanding curative cancer immunotherapy for patients with unresectable or metastatic solid tumors and lymphomas, which are responsible
for more than 90% of all cancer deaths. The Company is developing a novel, multi-targeted product that activates both innate and adaptive
anti-tumor and anti-viral immune responses.

Risks and uncertainties

The Company is subject to a number of risks similar
to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products,
the need for additional capital (or financing) to fund operations (see below), competition from substitute products and services from
larger companies, protection of proprietary technology, patent litigation, 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 three-month period ended March 31, 2025, the Company incurred a net loss of
approximately $4.5
million, and as of March 31, 2025, the Company had an accumulated deficit of approximately $65.0
million. In addition, during the three-month period ended March 31, 2025, the Company used approximately $5.0
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. As of
the date of the issuance of these unaudited condensed consolidated financial statements and based on its current operating plan, the Company will need to obtain additional capital to fund its ongoing
activities beyond the second quarter of 2025. 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 Stand