Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 1385

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1A
Chunk 1385
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-Oxley
Act and The Nasdaq Stock Market LLC (“Nasdaq”) rules. The requirements of these rules and regulations increase our legal
and financial compliance costs, make some activities more difficult, time-consuming or costly and place strain on our personnel, systems
and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our
business and financial condition.

59

The
Sarbanes-Oxley Act requires, among other things, that we disclose whether we maintain effective disclosure controls and procedures and
internal control over financial reporting. Ensuring that we have adequate internal financial and accounting controls and procedures in
place is a costly and time-consuming effort that needs to be re-evaluated frequently.

We
may need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge.
Implementing any appropriate changes to our internal controls may require specific compliance training for our directors, officers and
employees, entail substantial costs, and take a significant period of time to complete. Such changes may not, however, be effective in
maintaining the adequacy of our internal controls, and any failure to maintain that adequacy, or consequent inability to produce accurate
financial statements on a timely basis, could increase our operating costs and could materially impair our ability to operate our business.
Moreover, effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent fraud.

In
accordance with Nasdaq rules, we will be required to maintain a majority independent board of directors. The various rules and regulations
applicable to public companies make it more difficult and more expensive for us to maintain directors’ and officers’ liability
insurance, and we may be required to accept reduced coverage or incur substantially higher costs to maintain coverage. If we are unable
to maintain adequate directors’ and officers’ insurance, our ability to recruit and retain qualified officers and directors
will be significantly curtailed.

It
is expected that the rules and regulations applicable to public companies will result in us incurring substantial legal and financial
compliance costs. These costs will decrease our net income or increase our net loss and may require us to reduce costs in other areas
of our business.

Failure
to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could
have a material adverse effect on our share price.

As
a public company in the U.S., we incur significant accounting,