Company: INDP
Filing Date: 2025-02-12
Form Type: S-1
Source: 0001493152-25-006068
Chunk: 164

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-02-12
Form: S-1
Chunk 164
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 matters. Periodically, the Company reviews the status of significant matters, if any exist, and assesses its potential financial exposure. If the potential loss from any claim or legal claim is considered probable and the amount of such potential loss can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation.

Leases

On October 1, 2021, the Company entered into a noncancelable two-year operating lease agreement for approximately 2,000square feet of office space in San Diego, California. The base rent was $ 7,999per month with an increase of 3% after the first anniversary of the lease term commencement, which was November 1, 2022.

On April 19, 2023, the Company executed an amendment to the lease agreement to extend the lease through October 31, 2025.Accordingly, the Company remeasured its operating lease liability under the agreement and recognized an incremental lease liability and right-of-use asset of $ 236,506. The remeasurement was based on a 9% incremental borrowing rate.

| F-13 |

Future minimum annual lease payments and a reconciliation to the Company’s operating lease liability under the Company’s noncancelable operating lease as of December 31, 2023 are as follows:

SUMMARY OF MINIMUM LEASE PAYMENTS

| 2024                                              |     | $ |  101,705 |   |
| 2025                                              |     |   |   86,862 |   |
| Total minimum lease payments                      |     |   |  188,567 |   |
| Less: amount representing interest                |     |   |  (13,514 | ) |
| Present value of operating lease liability        |     |   |  175,053 |   |
| Less: current portion                             |     |   | (101,705 | ) |
| Operating lease liability, net of current portion |     | $ |   73,348 |   |

The Company recognized rent expense of $ 100,742and $ 97,425during the years ended December 31, 2023 and 2022, respectively. Total cash payments for the operating lease totaled $ 99,254and $