Company: INDP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021759
Chunk: 19

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 19
---
 exercisable at $0.01
per share and do not have an expiration date. As of September 30, 2025, pre-funded warrants to purchase an aggregate of 15,391
shares of common stock had been exercised.

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 fair
value of a warrant to purchase one share of common stock that was issued to the investors and the placement agent was $8.73.

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. Accordingly, the Company recognized an increase in the fair value of the Notes of approximately $1.15 million and $0.36
million during the nine and three months ended September 30, 2025, respectively. On July 27, 2025, the Company determined the fair value
of the Notes immediately prior to their conversion, based on the closing share price on that date and the number of shares to be issued.
Upon conversion, the Company reclassified the fair value of the Notes, approximately $6.8 million, from current liabilities to shareholders’
equity.

    F-11

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