Indaptus Therapeutics (INDP) 10-Q 6 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 03, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-40652
Entity Registrant Name	Indaptus Therapeutics, Inc.
Entity Central Index Key	0001857044
Entity Tax Identification Number	86-3158720
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3 Columbus Circle
Entity Address, Address Line Two	15th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10019
City Area Code	(646)
Local Phone Number	427-2727
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	INDP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,401,047

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 15,963,998	$ 9,626,800
Marketable securities		16,806,009
Prepaid expenses and other current assets	879,524	811,433
Total current assets	16,843,522	27,244,242
Non-current assets:
Property and equipment, net	1,055	2,019
Right-of-use asset	194,751	79,294
Other assets	754,728	738,251
Total non-current assets	950,534	819,564
Total assets	17,794,056	28,063,806
Current liabilities:
Accounts payable and other current liabilities	2,264,062	3,352,847
Operating lease liability, current portion	101,004	80,494
Total current liabilities	2,365,066	3,433,341
Non-current liabilities:
Operating lease liability, net of current portion	95,237
Total non-current liabilities	95,237
Total liabilities	2,460,303	3,433,341
Commitments and contingent liabilities (Note 7)
Stockholders’ equity:
Common stock: $0.01 par value, 200,000,000 shares authorized as of September 30, 2023 and December 31, 2022; 8,401,047 shares issued and outstanding as of September 30, 2023 and December 31, 2022	84,011	84,011
Additional paid in capital	56,664,118	54,443,705
Accumulated deficit	(41,414,376)	(29,993,685)
Accumulated other comprehensive income		96,434
Total stockholders’ equity	15,333,753	24,630,465
Total liabilities and stockholders’ equity	$ 17,794,056	$ 28,063,806

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	8,401,047	8,401,047
Common stock, shares outstanding	8,401,047	8,401,047

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating expenses:
Research and development	$ 2,226,688	$ 1,609,554	$ 5,587,073	$ 4,412,817
General and administrative	2,021,724	1,942,995	6,611,767	6,411,066
Total operating expenses	4,248,412	3,552,549	12,198,840	10,823,883
Loss from operations	(4,248,412)	(3,552,549)	(12,198,840)	(10,823,883)
Other income, net	326,024	86,184	778,149	156,862
Net loss	$ (3,922,388)	$ (3,466,365)	$ (11,420,691)	$ (10,667,021)
Net loss available to common stockholders per share of common stock, basic	$ (0.47)	$ (0.42)	$ (1.36)	$ (1.29)
Net loss available to common stockholders per share of common stock, diluted	$ (0.47)	$ (0.42)	$ (1.36)	$ (1.29)
Weighted average number of shares used in calculating net loss per share, basic	8,401,047	8,258,597	8,401,047	8,258,597
Weighted average number of shares used in calculating net loss per share,diluted	8,401,047	8,258,597	8,401,047	8,258,597
Other comprehensive income:
Reclassification adjustment for interest earned on marketable securities included in net loss	$ (140,567)	$ (7,836)	$ (430,993)	$ (7,836)
Change in unrealized gain on marketable securities	6,412	49,904	334,559	22,967
Comprehensive loss	$ (4,056,543)	$ (3,424,297)	$ (11,517,125)	$ (10,651,890)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2021	$ 82,586	$ 51,487,881	$ (15,670,887)		$ 35,899,580
Balance, shares at Dec. 31, 2021	8,258,597
Stock-based compensation		831,183			831,183
Change in unrealized gain on marketable securities				(9,221)	(9,221)
Net loss			(3,365,154)		(3,365,154)
Balance at Mar. 31, 2022	$ 82,586	52,319,064	(19,036,041)	(9,221)	33,356,388
Balance, shares at Mar. 31, 2022	8,258,597
Balance at Dec. 31, 2021	$ 82,586	51,487,881	(15,670,887)		35,899,580
Balance, shares at Dec. 31, 2021	8,258,597
Change in unrealized gain on marketable securities					22,967
Net loss					(10,667,021)
Reclassification adjustment for interest earned on marketable securities included in net loss					(7,836)
Balance at Sep. 30, 2022	$ 82,586	53,807,500	(26,337,908)	15,131	27,567,309
Balance, shares at Sep. 30, 2022	8,258,597
Balance at Mar. 31, 2022	$ 82,586	52,319,064	(19,036,041)	(9,221)	33,356,388
Balance, shares at Mar. 31, 2022	8,258,597
Stock-based compensation		904,395			904,395
Change in unrealized gain on marketable securities				(17,716)	(17,716)
Net loss			(3,835,502)		(3,835,502)
Balance at Jun. 30, 2022	$ 82,586	53,223,459	(22,871,543)	(26,937)	30,407,565
Balance, shares at Jun. 30, 2022	8,258,597
Stock-based compensation		584,041			584,041
Change in unrealized gain on marketable securities				49,904	49,904
Net loss			(3,466,365)		(3,466,365)
Reclassification adjustment for interest earned on marketable securities included in net loss				(7,836)	(7,836)
Balance at Sep. 30, 2022	$ 82,586	53,807,500	(26,337,908)	15,131	27,567,309
Balance, shares at Sep. 30, 2022	8,258,597
Balance at Dec. 31, 2022	$ 84,011	54,443,705	(29,993,685)	96,434	24,630,465
Balance, shares at Dec. 31, 2022	8,401,047
Stock-based compensation		727,144			727,144
Change in unrealized gain on marketable securities				210,252	210,252
Net loss			(4,253,238)		(4,253,238)
Reclassification adjustment for interest earned on marketable securities included in net loss				(129,229)	(129,229)
Balance at Mar. 31, 2023	$ 84,011	55,170,849	(34,246,923)	177,457	21,185,394
Balance, shares at Mar. 31, 2023	8,401,047
Balance at Dec. 31, 2022	$ 84,011	54,443,705	(29,993,685)	96,434	24,630,465
Balance, shares at Dec. 31, 2022	8,401,047
Change in unrealized gain on marketable securities					334,559
Net loss					(11,420,691)
Reclassification adjustment for interest earned on marketable securities included in net loss					(430,993)
Balance at Sep. 30, 2023	$ 84,011	56,664,118	(41,414,376)		15,333,753
Balance, shares at Sep. 30, 2023	8,401,047
Balance at Mar. 31, 2023	$ 84,011	55,170,849	(34,246,923)	177,457	21,185,394
Balance, shares at Mar. 31, 2023	8,401,047
Stock-based compensation		728,466			728,466
Change in unrealized gain on marketable securities				117,895	117,895
Net loss			(3,245,065)		(3,245,065)
Reclassification adjustment for interest earned on marketable securities included in net loss				(161,197)	(161,197)
Balance at Jun. 30, 2023	$ 84,011	55,899,315	(37,491,988)	134,155	18,625,493
Balance, shares at Jun. 30, 2023	8,401,047
Stock-based compensation		764,803			764,803
Change in unrealized gain on marketable securities				6,412	6,412
Net loss			(3,922,388)		(3,922,388)
Reclassification adjustment for interest earned on marketable securities included in net loss				(140,567)	(140,567)
Balance at Sep. 30, 2023	$ 84,011	$ 56,664,118	$ (41,414,376)		$ 15,333,753
Balance, shares at Sep. 30, 2023	8,401,047

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (11,420,691)	$ (10,667,021)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	964	1,460
Stock-based compensation	2,220,413	2,319,619
Interest earned on marketable securities	(430,993)	(7,836)
Realized gain on assets held for sale		(24,155)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(84,568)	(26,739)
Accounts payable and other current liabilities	(1,088,785)	(1,725,592)
Other assets		(738,251)
Operating lease right-of-use asset and liability, net	290	1,081
Net cash used in operating activities	(10,803,370)	(10,867,434)
Cash flows from investing activities:
Proceeds received for assets held for sale		172,555
Maturity of marketable securities including interest earned	24,000,000	2,000,000
Purchase of marketable securities	(6,859,432)	(23,719,073)
Net cash provided by (used in) investing activities	17,140,568	(21,546,518)
Net increase (decrease) in cash and cash equivalents	6,337,198	(32,413,952)
Cash and cash equivalents at beginning of period	9,626,800	39,132,165
Cash and cash equivalents at end of period	15,963,998	6,718,213
Noncash investing and financing activities
Change in unrealized gain/loss on marketable securities	(96,434)
ASC 842 lease renewal option exercise	236,506
Reclassification of security deposit	16,477
Supplemental disclosures
Cash paid for income taxes	1,600	2,400
Cash received for interest earned on deposits	$ 317,261	$ 70,353

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ (3,922,388)	$ (3,245,065)	$ (4,253,238)	$ (3,466,365)	$ (3,835,502)	$ (3,365,154)	$ (11,420,691)	$ (10,667,021)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Insider Trading Arrangements [Line Items]
Material Terms of Trading Arrangement	During the three months ended September 30, 2023, no director or “officer” (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated a “ Rule 10b5-1 trading arrangement non-Rule 10b5-1 trading arrangement
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

GENERAL

GENERAL	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1: GENERAL Indaptus Therapeutics, Inc. and its wholly-owned subsidiaries, Decoy Biosystems, Inc. and Intec Pharma Ltd., collectively (the “Company”), is a biotechnology company dedicated to enhancing and expanding curative cancer immunotherapy for patients with unresectable or metastatic solid tumors and lymphomas, which are responsible for more than 90% of all cancer deaths. The Company is developing a novel, multi-targeted product that activates both innate and adaptive anti-tumor and anti-viral immune responses. Risks and uncertainties The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional capital (or financing) to fund operating losses (see below), competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, and dependence on key individuals. The Company is subject to general conditions and macroeconomic factors in the global economy including increasing concerns over banking failures and bailouts and their potential broader effect on the banking sector generally and on the biotechnology industry. Additionally, inflation, rising interest rates, overall economic conditions and uncertainties, and the risk of a severe or prolonged economic downturn could result in a variety of risks, including the Company’s ability to raise additional funding on a timely basis or on acceptable terms and may additionally impact third parties upon which the Company relies to carry out its operations. Going concern and management’s plans The Company has incurred net losses and utilized cash in operations since inception. For the nine months ended September 30, 2023, the Company incurred a net loss of approximately $ 11.4 41.4 10.8 As a result of these uncertainties, there is substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments to the carrying amounts and classifications of assets and liabilities that would result if the Company was unable to continue as a going concern.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and SEC Regulation S-X Article 10 for interim financial statements. Accordingly, they do not contain all information and notes required by US GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of September 30, 2023, and the consolidated results of operations and changes in stockholders’ equity for the three- and nine-month periods ended September 30, 2023 and 2022 and cash flows for the nine-month periods ended September 30, 2023 and 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on March 17, 2023. The condensed consolidated balance sheet data as of December 31, 2022, included in these unaudited condensed consolidated financial statements was derived from the audited financial statements for the year ended December 31, 2022, but does not include all disclosures required by US GAAP for annual financial statements. The results for the nine-month period ended September 30, 2023, are not necessarily indicative of the results expected for the year ending December 31, 2023. Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of Indaptus Therapeutics, Inc. and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation. Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting periods. The most significant estimates relate to the determination of the fair value of stock-based compensation and the determination of period-end obligations to certain contract research organizations. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates. Loss per share Loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is based upon the weighted average number of shares of common stock and of common stock equivalents outstanding when dilutive. Common stock equivalents include outstanding stock options and warrants which are included under the treasury stock method when dilutive. The following number of stock options and warrants were excluded from the calculation of diluted loss per share because their effect would have been anti-dilutive for the periods presented (share data): SCHEDULE OF ANTI-DILUTIVE SECURITIES Weighted average Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Outstanding stock options 2,034,562 1,608,837 1,955,182 1,543,931 Warrants 3,090,787 3,090,787 3,090,787 3,090,787 Research and development expenses Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, share-based compensation expenses, payroll taxes and other employee benefits, subcontractors and materials used for research and development activities, including clinical trials and professional services. All costs associated with research and development are expensed as incurred. The Company accrues for expenses resulting from obligations under agreements with contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”), and other outside service providers for which payment flows do not match the periods over which services or materials are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements with CROs, CMOs, and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. In the event advance payments are made to a CRO, CMO, or outside service provider, the payments will be recorded as a prepaid expense, which will be amortized or expensed as the contracted services are performed. Recently adopted accounting standard On January 1, 2023, the Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	9 Months Ended
	Sep. 30, 2023
Prepaid Expenses And Other Current Assets
PREPAID EXPENSES AND OTHER CURRENT ASSETS	NOTE 3: PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets are comprised of the following: SCHEDULE OF PREPAID EXPENSE AND OTHER CURRENT ASSETS September 30, December 31, 2023 2022 Prepaid insurance $ 737,881 $ 610,208 Prepaid research and development 19,457 80,910 Other prepaid expenses 122,186 120,315 Total prepaid expenses and other current assets $ 879,524 $ 811,433

ACCOUNTS PAYABLE AND OTHER CURR

ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES	NOTE 4: ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES Accounts payable and other current liabilities are comprised of the following: SCHEDULE OF ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES September 30, December 31, 2023 2022 Accounts payable $ 617,270 $ 1,378,316 Accrued employee costs 795,183 1,216,242 Accrued professional fees 124,852 172,356 Accrued research and development 559,044 311,036 Accrued board fees 117,750 116,000 Delaware franchise taxes payable 30,000 128,929 Other accrued expenses 19,963 29,968 Total accounts payable and other current liabilities $ 2,264,062 $ 3,352,847

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 5: STOCK-BASED COMPENSATION The Company has an equity incentive plan for grants to employees, officers, consultants, directors, and other service providers that was approved in 2021 (the “2021 Plan”). The maximum aggregate number of shares that may be issued pursuant to this 2021 Plan is 1,864,963 the Pool will increase on January 1 of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2024 (each, an “Evergreen Date”), in an amount equal to the lesser of (i) 3% of the total number of shares of common stock outstanding on the December 31st immediately preceding the applicable Evergreen Date and (ii) such lesser number of shares of common stock as determined to be appropriate by the Committee (as defined in the 2021 Plan) in its sole discretion. On January 1, 2022 and January 1, 2023, the Pool was increased by 247,758 252,031 The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, restricted stock awards, restricted stock units, unrestricted stock awards, stock appreciation rights and other forms of stock-based compensation. The 2021 Plan permits the Company’s board to change the type, terms and conditions of awards as circumstances may change. This flexibility to adjust the type of compensation to be granted is particularly important given current economic and world events. A summary of the stock option activity during the nine months ended September 30, 2023, is presented in the table below: SCHEDULE OF SHARE BASED COMPENSATION Weighted average Number of Exercise Remaining Intrinsic value Outstanding as of January 1, 2023 1,672,873 $ 13.01 8.5 $ - Granted 425,750 $ 1.70 - $ - Forfeited and cancelled (48,426 ) $ 4.34 - $ - Outstanding as of September 30, 2023 2,050,197 $ 10.86 8.1 $ 556,523 Exercisable as of September 30, 2023 1,080,701 $ 16.37 7.6 $ 62,993 Vested and expected to vest September 30, 2023 2,050,197 $ 10.86 8.1 $ 556,523 The following table summarizes the total stock-based compensation expense included in the condensed consolidated statements of operations for the periods presented: SCHEDULE OF STOCK BASED COMPENSATION EXPENSES For the three months ended For the nine months ended 2023 2022 2023 2022 Research and development $ 200,624 $ 217,379 $ 586,854 $ 602,069 General and administrative 564,179 366,662 1,633,559 1,717,550 Total stock-based compensation expense $ 764,803 $ 584,041 $ 2,220,413 $ 2,319,619 As of September 30, 2023, total compensation cost not yet recognized related to unvested stock options was approximately $ 3.0 0.9 The Company estimates the fair value of stock options on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of each stock option. The weighted average inputs used to measure the value of the options granted during the nine months ended September 30, 2023 are presented in the table below. The weighted average fair value of stock options issued during the nine months ended September 30, 2023 was $ 1.43 SCHEDULE OF WEIGHTED AVERAGE INPUTS USED TO MEASURE VALUE OF OPTIONS GRANTED 2023 Stock price $ 1.70 Exercise price $ 1.70 Expected term (in years) 5.8 Volatility 110.9 % Risk free rate 3.7 % Dividend yield 0 % The following table presents the exercise price of outstanding stock options as of September 30, 2023: SCHEDULE OF EXERCISE PRICE OF OUTSTANDING STOCK OPTIONS Exercise price Options $ 0.01 8.00 1,023,249 $ 8.01 16.00 992,250 $ 16.00 34,698 Total 2,050,197

CAPITALIZATION

CAPITALIZATION	9 Months Ended
	Sep. 30, 2023
Capitalization
CAPITALIZATION	NOTE 6: CAPITALIZATION As of September 30, 2023 and December 31, 2022, the Company had 200,000,000 8,401,047 3,090,787 12.50 3.2

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 7: COMMITMENTS AND CONTINGENCIES Litigation On July 13, 2022, LTS Lohmann Therapie Systeme AG (“LTS”) filed a Request for Arbitration with the International Chamber of Commerce (“Request”), naming as respondent the Company’s subsidiary, Intec Israel. The Request alleges that LTS is entitled to payment of Euro 2 1 1 On February 7, 2023, Intec Israel settled the dispute with LTS by paying Euro 800,000 860,000 345,000 365,000 From time to time, the Company could become involved in additional 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 7,999 3% On April 19, 2023, the Company executed an amendment to the lease agreement to extend the lease through October 31, 2025. 236,506 9% Future minimum lease payments for the years ending December 31, under the Company’s noncancelable operating lease as of September 30, 2023 are as follows: SUMMARY OF MINIMUM LEASE PAYMENTS 2023 (remaining) $ 25,105 2024 101,705 2025 86,862 Total minimum lease payments 213,672 Less: amount representing interest (17,431 ) Present value of operating lease liability 196,241 Less: current portion (101,004 ) Operating lease liability, net of current portion $ 95,237 The Company recognized rent expense of $ 75,280 73,069 25,462 24,356 74,148 71,989

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8: SUBSEQUENT EVENTS The Company evaluated subsequent events from September 30, 2023, the date of these unaudited condensed consolidated financial statements, through November 6, 2023, which represents the date the condensed consolidated financial statements were issued, for events requiring recognition or disclosure in the condensed consolidated financial statements for the nine months ended September 30, 2023. The Company concluded that no events have occurred that would require recognition or disclosure in the condensed consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and SEC Regulation S-X Article 10 for interim financial statements. Accordingly, they do not contain all information and notes required by US GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of September 30, 2023, and the consolidated results of operations and changes in stockholders’ equity for the three- and nine-month periods ended September 30, 2023 and 2022 and cash flows for the nine-month periods ended September 30, 2023 and 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on March 17, 2023. The condensed consolidated balance sheet data as of December 31, 2022, included in these unaudited condensed consolidated financial statements was derived from the audited financial statements for the year ended December 31, 2022, but does not include all disclosures required by US GAAP for annual financial statements. The results for the nine-month period ended September 30, 2023, are not necessarily indicative of the results expected for the year ending December 31, 2023.
Principles of consolidation	Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of Indaptus Therapeutics, Inc. and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.
Use of estimates	Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting periods. The most significant estimates relate to the determination of the fair value of stock-based compensation and the determination of period-end obligations to certain contract research organizations. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and adjusts when facts and circumstances dictate. These estimates are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from those estimates.
Loss per share	Loss per share Loss per share, basic and diluted, is computed on the basis of the net loss for the period divided by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is based upon the weighted average number of shares of common stock and of common stock equivalents outstanding when dilutive. Common stock equivalents include outstanding stock options and warrants which are included under the treasury stock method when dilutive. The following number of stock options and warrants were excluded from the calculation of diluted loss per share because their effect would have been anti-dilutive for the periods presented (share data): SCHEDULE OF ANTI-DILUTIVE SECURITIES Weighted average Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Outstanding stock options 2,034,562 1,608,837 1,955,182 1,543,931 Warrants 3,090,787 3,090,787 3,090,787 3,090,787
Research and development expenses	Research and development expenses Research and development expenses include costs directly attributable to the conduct of research and development programs, including the cost of salaries, share-based compensation expenses, payroll taxes and other employee benefits, subcontractors and materials used for research and development activities, including clinical trials and professional services. All costs associated with research and development are expensed as incurred. The Company accrues for expenses resulting from obligations under agreements with contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”), and other outside service providers for which payment flows do not match the periods over which services or materials are provided to the Company. Accruals are recorded based on estimates of services received and efforts expended pursuant to agreements with CROs, CMOs, and other outside service providers. These estimates are typically based on contracted amounts applied to the proportion of work performed and determined through analysis with internal personnel and external service providers as to the progress or stage of completion of the services. In the event advance payments are made to a CRO, CMO, or outside service provider, the payments will be recorded as a prepaid expense, which will be amortized or expensed as the contracted services are performed.
Recently adopted accounting standard	Recently adopted accounting standard On January 1, 2023, the Company adopted ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SCHEDULE OF ANTI-DILUTIVE SECURITIES	The following number of stock options and warrants were excluded from the calculation of diluted loss per share because their effect would have been anti-dilutive for the periods presented (share data): SCHEDULE OF ANTI-DILUTIVE SECURITIES Weighted average Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Outstanding stock options 2,034,562 1,608,837 1,955,182 1,543,931 Warrants 3,090,787 3,090,787 3,090,787 3,090,787

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2023
Prepaid Expenses And Other Current Assets
SCHEDULE OF PREPAID EXPENSE AND OTHER CURRENT ASSETS	Prepaid expenses and other current assets are comprised of the following: SCHEDULE OF PREPAID EXPENSE AND OTHER CURRENT ASSETS September 30, December 31, 2023 2022 Prepaid insurance $ 737,881 $ 610,208 Prepaid research and development 19,457 80,910 Other prepaid expenses 122,186 120,315 Total prepaid expenses and other current assets $ 879,524 $ 811,433

ACCOUNTS PAYABLE AND OTHER CU_2

ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2023
Payables and Accruals [Abstract]
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES	Accounts payable and other current liabilities are comprised of the following: SCHEDULE OF ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES September 30, December 31, 2023 2022 Accounts payable $ 617,270 $ 1,378,316 Accrued employee costs 795,183 1,216,242 Accrued professional fees 124,852 172,356 Accrued research and development 559,044 311,036 Accrued board fees 117,750 116,000 Delaware franchise taxes payable 30,000 128,929 Other accrued expenses 19,963 29,968 Total accounts payable and other current liabilities $ 2,264,062 $ 3,352,847

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF SHARE BASED COMPENSATION	A summary of the stock option activity during the nine months ended September 30, 2023, is presented in the table below: SCHEDULE OF SHARE BASED COMPENSATION Weighted average Number of Exercise Remaining Intrinsic value Outstanding as of January 1, 2023 1,672,873 $ 13.01 8.5 $ - Granted 425,750 $ 1.70 - $ - Forfeited and cancelled (48,426 ) $ 4.34 - $ - Outstanding as of September 30, 2023 2,050,197 $ 10.86 8.1 $ 556,523 Exercisable as of September 30, 2023 1,080,701 $ 16.37 7.6 $ 62,993 Vested and expected to vest September 30, 2023 2,050,197 $ 10.86 8.1 $ 556,523
SCHEDULE OF STOCK BASED COMPENSATION EXPENSES	SCHEDULE OF STOCK BASED COMPENSATION EXPENSES For the three months ended For the nine months ended 2023 2022 2023 2022 Research and development $ 200,624 $ 217,379 $ 586,854 $ 602,069 General and administrative 564,179 366,662 1,633,559 1,717,550 Total stock-based compensation expense $ 764,803 $ 584,041 $ 2,220,413 $ 2,319,619
SCHEDULE OF WEIGHTED AVERAGE INPUTS USED TO MEASURE VALUE OF OPTIONS GRANTED	SCHEDULE OF WEIGHTED AVERAGE INPUTS USED TO MEASURE VALUE OF OPTIONS GRANTED 2023 Stock price $ 1.70 Exercise price $ 1.70 Expected term (in years) 5.8 Volatility 110.9 % Risk free rate 3.7 % Dividend yield 0 %
SCHEDULE OF EXERCISE PRICE OF OUTSTANDING STOCK OPTIONS	The following table presents the exercise price of outstanding stock options as of September 30, 2023: SCHEDULE OF EXERCISE PRICE OF OUTSTANDING STOCK OPTIONS Exercise price Options $ 0.01 8.00 1,023,249 $ 8.01 16.00 992,250 $ 16.00 34,698 Total 2,050,197

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
SUMMARY OF MINIMUM LEASE PAYMENTS	Future minimum lease payments for the years ending December 31, under the Company’s noncancelable operating lease as of September 30, 2023 are as follows: SUMMARY OF MINIMUM LEASE PAYMENTS 2023 (remaining) $ 25,105 2024 101,705 2025 86,862 Total minimum lease payments 213,672 Less: amount representing interest (17,431 ) Present value of operating lease liability 196,241 Less: current portion (101,004 ) Operating lease liability, net of current portion $ 95,237

GENERAL (Details Narrative)

GENERAL (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 3,922,388	$ 3,245,065	$ 4,253,238	$ 3,466,365	$ 3,835,502	$ 3,365,154	$ 11,420,691	$ 10,667,021
Accumulated deficit	$ 41,414,376						41,414,376		$ 29,993,685
Cash in operations							$ 10,803,370	$ 10,867,434

SCHEDULE OF ANTI-DILUTIVE SECUR

SCHEDULE OF ANTI-DILUTIVE SECURITIES (Details) - shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	2,034,562	1,608,837	1,955,182	1,543,931
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	3,090,787	3,090,787	3,090,787	3,090,787	3,090,787

SCHEDULE OF PREPAID EXPENSE AND

SCHEDULE OF PREPAID EXPENSE AND OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Prepaid Expenses And Other Current Assets
Prepaid insurance	$ 737,881	$ 610,208
Prepaid research and development	19,457	80,910
Other prepaid expenses	122,186	120,315
Total prepaid expenses and other current assets	$ 879,524	$ 811,433

SCHEDULE OF ACCOUNTS PAYABLE AN

SCHEDULE OF ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable	$ 617,270	$ 1,378,316
Accrued employee costs	795,183	1,216,242
Accrued professional fees	124,852	172,356
Accrued research and development	559,044	311,036
Accrued board fees	117,750	116,000
Delaware franchise taxes payable	30,000	128,929
Other accrued expenses	19,963	29,968
Total accounts payable and other current liabilities	$ 2,264,062	$ 3,352,847

SCHEDULE OF SHARE BASED COMPENS

SCHEDULE OF SHARE BASED COMPENSATION (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Number of options, Outstanding, Beginning balance	1,672,873
Weighted average exercise price, Outstanding, Beginning balance	$ 13.01
Weighted average remaining contractual life, Outstanding, Ending balance	8 years 1 month 6 days	8 years 6 months
Intrinsic value, Outstanding, Beginning balance
Number of options, Granted	425,750
Weighted average exercise price, Granted	$ 1.70
Number of options, Forfeited and cancelled	(48,426)
Weighted average exercise price, Forfeited and cancelled	$ 4.34
Number of options, Outstanding, Ending balance	2,050,197	1,672,873
Weighted average exercise price, Ending balance	$ 10.86	$ 13.01
Intrinsic value, Outstanding, Ending balance	$ 556,523
Number of options, Exercisable	1,080,701
Weighted average exercise price, Exercisable	$ 16.37
Exercisable at end of period, Weighted average remaining contractual life	7 years 7 months 6 days
Intrinsic value, Exercisable, Ending balance	$ 62,993
Number of options, Vested and expected to vest	2,050,197
Weighted average exercise price, Vested and expected to vest	$ 10.86
Vested and expected to vest, Weighted average remaining contractual life	8 years 1 month 6 days
Intrinsic value, Vested and expected to vest	$ 556,523

SCHEDULE OF STOCK BASED COMPENS

SCHEDULE OF STOCK BASED COMPENSATION EXPENSES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 764,803	$ 584,041	$ 2,220,413	$ 2,319,619
Research and Development Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	200,624	217,379	586,854	602,069
General and Administrative Expense [Member]
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 564,179	$ 366,662	$ 1,633,559	$ 1,717,550

SCHEDULE OF WEIGHTED AVERAGE IN

SCHEDULE OF WEIGHTED AVERAGE INPUTS USED TO MEASURE VALUE OF OPTIONS GRANTED (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares
Share-Based Payment Arrangement [Abstract]
Stock price	$ 1.70
Exercise price	$ 1.70
Expected term (in years)	5 years 9 months 18 days
Volatility	110.90%
Risk free rate	3.70%
Dividend yield	0%

SCHEDULE OF EXERCISE PRICE OF O

SCHEDULE OF EXERCISE PRICE OF OUTSTANDING STOCK OPTIONS (Details) (Parenthetical)	9 Months Ended
	Sep. 30, 2023 $ / shares
Exercise Price Range One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range lower range limit	$ 0.01
Exercise price range upper range limit	8
Exercise Price Range Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range lower range limit	8.01
Exercise price range upper range limit	16
Exercise Price Range Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range lower range limit	$ 16

SCHEDULE OF EXERCISE PRICE OF_2

SCHEDULE OF EXERCISE PRICE OF OUTSTANDING STOCK OPTIONS (Details)	Sep. 30, 2023 shares
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding	2,050,197
Exercise Price Range One [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding	1,023,249
Exercise Price Range Two [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding	992,250
Exercise Price Range Three [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Options outstanding	34,698

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023	Jan. 01, 2023	Jan. 01, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation, not yet recognized	$ 3
Share-based compensation, not yet recognized, term	10 months 24 days
Weighted average grant date fair value of options granted	$ 1.43
2021 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum aggregate number of shares		252,031	247,758
Share based Compensation description	the Pool will increase on January 1 of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2024 (each, an “Evergreen Date”), in an amount equal to the lesser of (i) 3% of the total number of shares of common stock outstanding on the December 31st immediately preceding the applicable Evergreen Date and (ii) such lesser number of shares of common stock as determined to be appropriate by the Committee (as defined in the 2021 Plan) in its sole discretion. On January 1, 2022 and January 1, 2023, the Pool was increased by 247,758 shares and 252,031 shares, respectively. In no event shall more than 1,864,963 shares be available for issuance for Incentive Stock Options (as defined in the 2021 Plan) under the 2021 Plan.
2021 Plan [Member] | Employees Officers Consultants Directors [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Maximum aggregate number of shares	1,864,963

CAPITALIZATION (Details Narrati

CAPITALIZATION (Details Narrative) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, shares authorized	200,000,000		200,000,000		200,000,000
Common stock, shares issued	8,401,047		8,401,047		8,401,047
Common stock, shares outstanding	8,401,047		8,401,047		8,401,047
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average exercise price	$ 12.50		$ 12.50
Weighted average, remaining contractual life			3 years 2 months 12 days
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Warrants outstanding to purchase	3,090,787	3,090,787	3,090,787	3,090,787	3,090,787

SUMMARY OF MINIMUM LEASE PAYMEN

SUMMARY OF MINIMUM LEASE PAYMENTS (Details) - USD ($)	Sep. 30, 2023	Apr. 19, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
2023 (remaining)	$ 25,105
2024	101,705
2025	86,862
Total minimum lease payments	213,672
Less: amount representing interest	(17,431)
Present value of operating lease liability	196,241	$ 236,506
Less: current portion	(101,004)		$ (80,494)
Operating lease liability, net of current portion	$ 95,237

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative)						3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 19, 2023 USD ($)	Feb. 07, 2023 USD ($)	Feb. 07, 2023 EUR (€)	Jul. 13, 2022 EUR (€)	Oct. 01, 2021 USD ($) ft²	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Product Liability Contingency [Line Items]
Operating lease, extend description	lease agreement to extend the lease through October 31, 2025.
Operating lease liability	$ 236,506					$ 196,241		$ 196,241
Incremental borrowing rate	9%
Rental expense						$ 25,462	$ 24,356	75,280	$ 73,069
Operating lease payments								$ 74,148	$ 71,989
CALIFORNIA | Two Year Lease Agreement [Member]
Product Liability Contingency [Line Items]
Area of land | ft²					2,000
Base rent					$ 7,999
Rate of increase in lease rent					3%
Lohmann Therapie System AG [Member]
Product Liability Contingency [Line Items]
Payments for legal settlements | €				€ 2,000,000
Litigation settlement, expense		$ 860,000	€ 800,000							$ 1,000,000	€ 1,000,000
Other income										$ 365,000	€ 345,000