Company: INDP
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001493152-25-010136
Chunk: 93

Company: Indaptus Therapeutics, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 1
Chunk 93
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. Accordingly, there can be no assurance that the IRS will
not challenge the qualification of the Domestication Merger and the Merger as a Section 351(a) Exchange or that a court will not sustain
such a challenge. If the IRS were to be successful in any such contention, or if for any other reason the Domestication Merger was not
treated as part of a Section 351(a) Exchange, the Domestication Merger could be a taxable event to the former U.S. holders of ordinary
shares of Intec Israel. Former holders of Intec Israel’s ordinary shares are urged to consult with their own tax advisors with
respect to the tax consequences of the Domestication Merger.

60

Notwithstanding
that the Domestication Merger and the Merger together are intended to qualify as a Section 351(a) Exchange, the Domestication Merger
could be a taxable event for certain former U.S. Holders of Intec Israel ordinary shares.

Subject
to the limitations and qualifications described in “The Merger - Material U.S. Federal Income Tax Consequences of the Domestication
Merger and the Merger,” described in the registration statement on Form S-4, as amended (File No. 333-255389), filed by us
with the SEC, or the Form S-4, including the application of the passive foreign investment company, or PFIC rules, the Domestication
Merger is intended to qualify, taken together with the Merger, as a Section 351(a) Exchange. Nonetheless, certain former U.S. Holders
of Intec Israel’s ordinary shares are likely to be taxed under the PFIC rules of the Code because of the likelihood that Intec
Israel is classified as a PFIC.

General
Risk Factors

Unfavorable
global economic or geopolitical conditions could adversely affect our business, financial condition or results of operations.

Our
results of operations could be adversely affected by general conditions in the global economy and in the global financial markets. For
example, the U.S. and global markets have been experiencing and are continuing to experience extreme volatility and disruptions in the
capital and credit markets and commodity prices due to rising inflation and interest rates, geopolitical tensions such as the conflict
between Russia and Ukraine and the armed conflict in Israel and Gaza, and other macroeconomic factors. A severe or prolonged economic
downturn, such as the current macroeconomic environment, could result in a variety of risks to our business, including, our ability to