Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 654

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 4
Chunk 654
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 and “Risk Factors” in Item 1A. of this Annual Report.

Contractual
Obligations

Operating
lease liabilities represent our commitment for future rent made under a non-cancelable lease for our offices in San Diego, CA. The total
future payments for our operating lease obligation on December 31, 2024 were approximately $0.1 million and are due in the next twelve
months. For additional details regarding our lease, see Note 7 to our consolidated financial statements included in this Annual Report.

We
did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined under the SEC
rules.

Critical
Accounting Policies

This
discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which
have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates
that affect the reported amounts of our assets, liabilities and expenses. Significant accounting policies employed by us, including the
use of estimates, are presented in the notes to our annual financial statements included in this Annual Report. We periodically evaluate
our estimates, which are based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.
Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations
and require our subjective or complex judgments, resulting in the need to make estimates about the effect of matters that are inherently
uncertain. If actual performance should differ from historical experience or if the underlying assumptions were to change, our financial
condition and results of operations may be materially impacted.

We
believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our
consolidated financial statements:

Accounting
for Research and Development Costs

We
record the costs associated with services provided by CROs and CMOs as they are incurred. Though the scope and timing of work are generally
based on signed agreements, some judgement is involved in determining periodic expenses because payment flows do not always match the
periods over which services and materials are provided to us. As a result, our management is required to make estimates of services received
and efforts expended pursuant to agreements established with these third-parties at each period-end date. During the year ended December
31, 2024, we incurred approximately $7.2 million of research and development expenses, of which approximately $4