Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 349

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 349
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 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 and increase of $2.5 million respectively.

At
December 31, 2024, the Company has United States federal and state net operating loss (NOL) carryforwards of $35.3 million and $7.6 million,
respectively. The federal NOL carryforwards generated in pre-2018 tax years of $0.8 million will begin to expire in 2036 while federal
NOLs generated after 2017 of $34.4 million will carry forward indefinitely. The state NOL carryforwards of $7.6 million will begin to
expire in 2035 unless previously utilized. At December 31, 2024, the Company also had Israel NOL carryforwards of $197.9 million. The