Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 585

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 3
Chunk 585
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 calculated using the straight-line method over
the estimated useful lives of the assets. The Company uses an estimated useful life of three years for employee-related computers and
other office equipment and five years for furniture. Leasehold improvements are amortized over the shorter of the lease-term or the estimated
useful life of the related asset.

Patents

The
Company expenses patent costs, including related legal costs, as incurred and records such costs within general and administrative expense.

    F-8

Research
and development expenses

Research
and development expenses include costs directly attributable to the conduct of research and development programs, including the cost
of salaries, share-based compensation expenses, payroll taxes and other employee benefits, subcontractors and materials used for research
and development activities, including clinical trials and professional services. All costs associated with research and development are
expensed as incurred.

The
Company accrues for expenses resulting from obligations under agreements with contract research organizations (“CROs”), contract
manufacturing organizations (“CMOs”), and other outside service providers for which payment flows do not match the periods
over which services or materials are provided to the Company. Accruals are recorded based on estimates of services received and efforts
expended pursuant to agreements with CROs, CMOs, and other outside service providers. These estimates are typically based on contracted
amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers
as 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