Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 197

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 197
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 Official Closing Price (as reflected on Nasdaq.com) on the trading day immediately
    preceding the effective date or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for
    the five trading days immediately preceding the effective date). On February 12, 2025, the Company filed a Form S-1 covering
    the resale of up to 10,000,000 shares of common stock comprised of (i) 305,960 commitment shares, and (ii) up to 9,694,040 shares
    of common stock reserved for issuance and sale to Yorkville under the SEPA. The Form S-1 was declared effective on February 13, 2025.

NOTE
7: 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 law and employee relations matters. Periodically,
the Company reviews the status of significant matters, if any exist, and assesses its potential financial exposure. If the potential
loss from any claim or legal claim is considered probable and the amount of such potential loss can be estimated, the Company accrues
liability for the estimated loss. Legal proceedings are subject to uncertainties, and the outcomes are difficult to predict. Because
of such uncertainties, accruals are based on the best information available at the time. As additional information becomes available,
the Company reassesses the potential liability related to pending claims and litigation.

Leases

On
October 1, 2021, the Company entered into a noncancelable two-year operating lease agreement for approximately 2,000 square feet of office
space in San Diego, California. The base rent was $7,999 per month with an increase of 3% after the first anniversary of the lease term
commencement, which was November 1, 2022.

On
April 19, 2023, the Company executed an amendment to the lease agreement to extend the lease through October 31, 2025. Accordingly, the
Company remeasured its operating lease liability under the agreement and recognized an incremental lease liability and right-of-use asset
of $236,506. The remeasurement was based on a 9% incremental borrowing rate.

    F-14

Future
minimum annual lease payments and a reconciliation to the Company’s operating