Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 38

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1
Chunk 38
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capital through the sale of equity or convertible debt securities, your ownership interest will be diluted, and the terms may include
liquidation or other preferences that adversely affect your rights as a shareholder. For example, in June 2022, we entered into an at
the market offering agreement, which was amended on September 1, 2022, with a sales agent pursuant to which we may offer and sell from
time to time shares of our common stock for aggregate gross proceeds of up to $3.7 million, and in 2024, we sold 152,000 shares of our
common stock for aggregate gross proceeds of approximately $0.4 million. On August 6, 2024, we filed a prospectus supplement to reduce
the amount of shares registered under the prospectus for the ATM to $0.00 and to suspend the ATM program, but the ATM Agreement remains
in full force and effect. In August 2024, November 2024 and January 2025, we raised an aggregate of approximately $6.4 million, net of
placement agent and other offering expenses. In addition, in February 2025, we entered into a Standby
Equity Purchase Agreement pursuant to which we have the right, but not the obligation, to sell up to $20.0 million of our common stock
during a 36 month period, subject to the restrictions and satisfaction of the conditions in the Standby Equity Purchase Agreement. We
may also issue in the future equity securities that provide for rights, preferences and privileges senior to those of our common stock.
Given our need for cash and that equity issuances are the most common type of fundraising for similarly situated companies, the risk
of dilution is particularly significant for our stockholders. Depending upon market liquidity at the time, additional sales of shares
registered at any given time could cause the trading price of our common stock to decline. Debt financing, if available, would result
in increased fixed payment obligations and may involve agreements that include covenants limiting or restricting our ability to take
specific actions such as incurring debt, making capital expenditures or declaring dividends. If we raise additional funds through collaborations,
strategic alliances and licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future
revenue streams or product candidates, or grant licenses on terms that are not favorable to us.

28

Risks
Related to the Discovery and Development of Our Product Candidates

We
are dependent on the success of one