Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 350

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1B
Chunk 350
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Israel NOLs carry forward indefinitely.

The
Company’s ability to utilize its net operating losses may be limited under Section 382 and 383 of the Internal Revenue Code. The
limitations apply if an ownership change, as defined by Section 382, occurs. Generally, an ownership change occurs when certain shareholders
increase their aggregate ownership by more than 50 percentage points over their lowest ownership percentage in a testing period (typically
three years). Although the Company has not undergone a Section 382 analysis, it is possible that the utilization of the net operating
losses, could be substantially limited. Additionally, U.S. tax laws limit the time during which these carryforwards may be utilized against
future taxes. As a result, the Company may not be able to take full advantage of these carryforwards for federal and state tax purposes.
Future changes in stock ownership may also trigger an ownership change and, consequently, a Section 382 limitation.

The
Company recognizes the benefit of tax positions taken or expected to be taken in its tax returns in the consolidated financial statements
when it is more likely than not that the position will be sustained upon examination by authorities. Recognized tax positions are measured
at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. As of December 31, 2024 and 2023
the Company has not recorded any unrecognized tax benefits.

The
Company records interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses.
As of December 31, 2024 and 2023, the Company recorded no accrued interest and penalties related to unrecognized tax benefits. The Company
does not expect any significant changes in its tax positions that would warrant recognition of a liability for unrecognized income tax
benefits during the next 12 months.

The
Company files U.S. federal and various state income tax returns and is subject to the examination for tax years back to 2021 and 2020
for federal and state purposes, respectively, and its NOL’s dating back to inception are subject to adjustment by the taxing authorities
if claimed on future tax filings for which the statute remain open to examination. The Company also files Israeli tax returns and is
subject to examination for tax years back to 2020. The Company is not currently under audit by the Internal Revenue Service or other
similar national, state and local authorities.

NOTE
9: SEGMENT INFORMATION

Operating
segments are defined as components of an entity about which separate discrete information is available