Company: INDP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010099
Chunk: 43

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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of Macroeconomic Conditions on our Operations

Economic
developments such as inflation, interest rates and tariffs have negatively affected the global financial markets and may reduce our
ability to access capital, which could negatively impact our short-term and long-term liquidity. The ultimate impact of current
economic conditions is highly uncertain and subject to change. While it is unknown how long these conditions will last and what the
complete financial effect will be to us, capital raise efforts and additional development of our technologies may be negatively
affected. In addition, our business operations expose us to risks associated with public health crises and
epidemics/pandemics.

Components
of Operating Results

Research
and Development Expenses

Research
and development expenses account for a significant portion of our operating expenses. Research and development expenses consist primarily
of fees paid to contract research organizations, or CROs, and contract manufacturing organizations, or CMOs, as well as compensation
expenses for certain employees involved in the planning, managing, and analyzing the work of the CROs and CMOs and materials used for
research and development activities. We expense research and development costs as incurred.

We
accrue expenses for manufacturing, preclinical studies and clinical trial activities performed by third parties based on estimates of
services received and efforts expended pursuant to agreements with CROs, CMOs, and other outside service providers. We determine these
estimates 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, we record the payments as a prepaid asset, which will be amortized or expensed as the contracted
services are performed. However, actual costs and timing of these activities are highly uncertain, subject to risks and may change depending
upon a number of factors, including our clinical development plan.

2

We
expect our research and development expenses to increase substantially for the foreseeable future as we continue to ramp up our clinical
development activities and incur expenses associated with hiring additional personnel to support our research and development efforts.
Our expenditures on future nonclinical and clinical development programs are subject to numerous uncertainties in timing and cost to
completion. The duration, costs and timing of preclinical studies and clinical trials and development of product candidates will depend
on a variety of factors, including:

    ●
    the
    timing and receipt of regulatory approvals�