Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 678

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 4
Chunk 678
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 TAX ASSETS

    2024  
    2023 
  
    Deferred tax assets: 

    Net operating losses 
    $53,447,116  
    $51,846,000 
  
    Capitalized research and development 
     2,959,591  
     2,162,872 
  
    Stock-based compensation 
     288,756  
     261,052 
  
    Accruals 
     249,495  
     220,923 
  
    Operating lease liabilities 
     17,760  
     36,761 
  
    Other 
     616  
     559 
  
    Total gross deferred tax assets 
     56,963,334  
     54,528,167 

    Deferred tax liabilities: 

    Right-of-use asset 
     (17,340) 
     (36,373)
  
    Gross deferred tax liabilities 
     (17,340) 
     (36,373)

    Less: Deferred tax asset valuation allowance 
     (56,945,994) 
     (54,491,794)
  
    Total net deferred tax assets 
    $-  
    $- 

Deferred
income tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities
that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets
to the amount expected to be realized

    F-15

ASC
740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to
the extent that management assesses that realization is “more likely than not.” Realization of the future tax benefits is
dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. Because of the Company’s
recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned
future tax benefits is currently not likely to be realized and, accordingly, has provided a full valuation allowance for the years ended
December 31, 2024 and 2023. The net change in total valuation allowance for the years ended December 31, 2024 and 2023 was an increase
of $2.5 million