Company: INDP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023333
Chunk: 49

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 49
---
795
shares of common stock which represent the portion that would otherwise exceed the applicable threshold. The pre-funded warrants
have substantially the same terms as the July 2025 Warrants (as defined below), except they are exercisable at $0.01
per share and do not have an expiration date.

In
connection with the automatic conversion of the Notes, the Company also issued to investors in the offering warrants to purchase an aggregate
of 1,384,722 shares of common stock (the “July 2025 Warrants”). The July 2025 Warrants are exercisable at a price of $8.3024
per share and have a term of five years, expiring on July 27, 2030.

Placement
agent fees and other offering-related expenses, totaling approximately $0.8 million, were recognized as general and administrative
expenses in the statement of operations. In addition, the Company issued to the placement agent and its designees warrants to
purchase an aggregate of 83,083
shares of common stock at an exercise price of $8.3024.
The placement agent warrants have substantially the same terms as the July 2025 Warrants, except they include a cashless exercise
feature and expire on the fifth anniversary of the issuance date.

The
Company made an irrevocable election to measure the Notes at fair value as it believes the fair value option provides a greater
ability to estimate the outcome of future events as facts and circumstances change, particularly with respect to changes in the fair
value of the common stock. As of June 30, 2025, the fair value of the Notes was $6.5
million based on total principal and accrued interest of approximately $5.7
million and an estimated conversion price of $9.27
based on 80% of the average closing price of the common stock for the five days prior to June 30, 2025. Accordingly, the Company
recognized an increase in the fair value of the Notes of approximately $0.8
million during the three and six months ended June 30, 2025.

NOTE
8: COMMITMENTS AND CONTINGENCIES

Litigation

From
time to time, the Company could become involved in disputes and various litigation matters that arise in the normal course of business.
These may include disputes and lawsuits related to intellectual property, licensing, contract law and employee relations matters. Periodically,
the Company reviews the status of significant matters, if any exist, and assesses