Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 185

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 185
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 private placement in January 2025 (the “January 2025 Offering”). Following these offerings, the Company raised a total
of approximately $6.3 million, net of placement agent and other offering expenses in the amount of approximately $1.1 million. For more
details, see Note 6(c), 6(d) and 6(e). In addition, in February 2025, the Company entered into a Standby
Equity Purchase Agreement pursuant to which the Company has the right, but not the obligation, to sell up to $20.0 million of
the Company’s common stock during a 36-month period, subject to the restrictions and satisfaction of the conditions in the
Standby Equity Purchase Agreement. For more details, see Note 6(f). However, there is no assurance that additional capital and/or
financing will be available to the Company, and even if available, whether it will be on terms acceptable to the Company or in the amounts
required. If the Company is unsuccessful in securing sufficient financing, it may need to delay, reduce, or eliminate its research and
development programs, which could adversely affect its business prospects, or cease operations.

As
a result of these uncertainties, there is substantial doubt about the Company’s ability to continue as a going concern. The consolidated
financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that would
result if the Company was unable to continue as a going concern.

NOTE
2: SIGNIFICANT ACCOUNTING POLICIES

Basis
of presentation

The
consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the
United States of America (“US GAAP”).

    F-7

Principles
of consolidation

The
consolidated financial statements include the accounts of Indaptus and its subsidiaries. Intercompany balances and transactions have
been eliminated upon consolidation.

Use
of estimates

The
preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the
reported amounts of expenses during the reporting periods. The most significant estimates relate to the determination of the fair value
of stock-based compensation and the determination of period-end obligations to certain contract research organizations. Management evaluates
its estimates and assumptions on an ongoing basis using historical experience and other factors and makes adjustments when facts and
circumstances