Company: INDP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023333
Chunk: 42

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 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.

The
Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at
which to classify them for each reporting period. This determination requires significant judgments to be made by the Company.

As
of June 30, 2025 and December 31, 2024, the recorded values of cash and cash equivalents, prepaid expenses, accounts payable, and accrued
expenses and other liabilities approximated their fair values due to the short-term nature of these items.

Convertible
notes

The
Company issued convertible notes during the six months ended June 30, 2025 and elected to account for the debt at fair value. Such fair
value measurements are categorized within Level 3 of the fair value hierarchy. The changes in the fair value of the debt are recognized
in other income (expense) for each reporting period. For more details, see Note 7.

    F-7

The
following table summarizes the change in fair value of the Company’s Level 3 liabilities for the three and six months ended June
30, 2025:

 SCHEDULE OF CONVERTIBLE DEBT

    Convertible notes 
  
    Fair value, January 1, 2025 
    $- 
  
    Additions 
     5,714,800 
  
    Change in fair value 
     787,703 
  
    Fair value, June 30, 2025 
    $6,502,503 

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