Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 337

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 337
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 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,
the payments will be recorded as a prepaid expense, which will be amortized or expensed as the contracted services are performed.

General
and administrative expenses

General
and administrative expenses include compensation, employee benefits, and stock-based compensation for executive management, finance,
administration and human resources, facility costs (including rent), professional service fees, and other general overhead costs to support
the Company’s operations.

Income
taxes

Income
taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation
allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will
not be realized in the foreseeable future. As of December 31, 2024, and 2023, the Company has recorded a full valuation allowance against
its deferred tax assets.

The
Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized
income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or
measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized
tax benefits in interest expense and penalties in general and administrative expenses.

Stock-based
compensation

The
Company measures and records the expense related to stock-based payment awards based on the fair value of those awards as determined
using the Black-Scholes-Merton (“Black-Scholes”) model as of the date of grant. The Company recognizes stock-based compensation
expense over the requisite service period of the individual grant, generally equal to the vesting period, on a straight-line basis.

The
Black-Scholes model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based payment
awards, including the option’s expected term