Indaptus Therapeutics has no active clinical programs
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Indaptus Therapeutics, Inc. (INDP) reported a third-quarter net loss of $1,048,778, compared with $2,975,117 a year earlier. For the nine months ended September 30, 2026, net loss was $5,384,709 versus $12,736,466. Quarterly research and development expense was $271,204, down 82% from $1,517,723, primarily because of lower Decoy20 clinical costs and reduced payroll.
The company discontinued further enrollment in its combination study; no participants remain in active Decoy20 clinical studies, and Decoy20 development activity has been substantially reduced. It has no active clinical development programs and is evaluating strategic alternatives for its business and therapeutic assets without having determined which, if any, it will pursue.
As of September 30, 2026, cash and equivalents were $26,604,443 and short-term investments were $4,000,000. A September private placement for approximately $24.0 million in gross proceeds closed October 16, 2026; the remaining $3.5 million was received in October. Management believes cash, certificates of deposit and the October receipt will fund operations through December 31, 2027, excluding future financing. The company says additional capital will be needed for operations beyond that period and has not generated product revenue.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointNine-month net loss fell 58% to $5,384,709 from $12,736,466.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Management expects available resources to fund operations through December 31, 2027.
Negative
- Major pointNo active clinical development programs remain as Indaptus has substantially reduced Decoy20 development.
Filing Explained
The completed issuance increased the share count and reduced existing holders’ percentage ownership absent offsetting changes.
The September private placement closed on
The amended at-the-market agreement permits sales of up to
The filing reports cumulative at-the-market sales of 525,428 shares for approximately
Key Figures
Key Terms
preclinical evaluation medical
at the market agreement financial
anti-dilutive financial
going concern financial
Level 3 financial
weighted average remaining contractual term financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was INDP's third-quarter 2026 net loss?
How many shares did INDP issue in its September 2026 private placement?
What does INDP's amended at-the-market agreement permit?
When do INDP's certificates of deposit mature, and what rates do they earn?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE TRANSITION PERIOD FROM TO
Commission
File Number
(Exact name of Registrant as specified in its Charter)
| (State or other jurisdiction | (I.R.S. Employer |
| (Address of principal executive offices) | (Zip Code) |
(Registrant’s
telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☒ NO ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO
The
number of shares of the Registrant’s common stock outstanding as of November 13, 2026 was
TABLE OF CONTENTS
| Page | ||
| CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | ii | |
| PART I. FINANCIAL INFORMATION | F-1 | |
| Item 1. | Financial Statements | F-1 |
| Unaudited Condensed Consolidated Balance Sheets | F-1 | |
| Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss | F-2 | |
| Unaudited Condensed Consolidated Statements of Stockholders’ Equity (Deficit) | F-3 | |
| Unaudited Condensed Consolidated Statements of Cash Flows | F-4 | |
| Notes to Unaudited Condensed Consolidated Financial Statements | F-5 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 1 |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 5 |
| Item 4. | Controls and Procedures | 5 |
| PART II. OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 6 |
| Item 1A. | Risk Factors | 6 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 6 |
| Item 3. | Defaults Upon Senior Securities | 7 |
| Item 4. | Mine Safety Disclosures | 7 |
| Item 5. | Other Information | 7 |
| Item 6. | Exhibits | 7 |
| i |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q, or Quarterly Report, contains, and management may make, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this Quarterly Report are forward-looking statements. In some cases, forward-looking statements can be identified by the use of terms such as “believe,” “expect,” “intend,” “plan,” “may,” “should,” “anticipate,” “could,” “might,” “seek,” “target,” “will,” “project,” “forecast,” “continue” or their negatives or variations of these words or other comparable words. These statements include, without limitation, our statements about: our evaluation of our Decoy platform and Decoy20 assets, including any potential licensing, partnership or other strategic opportunities relating to those assets; our research collaborations and other research initiatives, including those relating to sleep-related biological signals, neurophysiological activity patterns, immune-therapeutic response pathways and other data-driven health technologies, and the potential contribution of such initiatives to our longer-term strategy; our general business strategy and the plans and objectives of management for future operations; our expectations regarding our research and development and general and administrative expenses; our future results of operations and financial condition; the sufficiency of our cash and cash equivalents to fund our ongoing activities and our ability to continue as a going concern; our ability to obtain additional financing when needed; and the impact of current macroeconomic conditions on our operations, ability to access capital, and liquidity.
The forward-looking statements in this Quarterly Report are only predictions and are based largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of known and unknown risks, uncertainties and assumptions, including those described under the sections in this Quarterly Report entitled Part II. Item 1A. “Risk Factors” and Part I. Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report.
Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.
Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise. We intend the forward-looking statements contained in this Quarterly Report to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.
| ii |
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
INDAPTUS THERAPEUTICS, INC.
Unaudited Condensed Consolidated Balance Sheets
| As of September 30, | As of December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Short-term investments | - | |||||||
| Prepaid expenses and other current assets | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other current liabilities | $ | $ | ||||||
| Proceeds received pending share issuance (Note 6h) | - | |||||||
| Total liabilities | ||||||||
| Commitments and contingencies (Note 7) | - | - | ||||||
| Stockholders’ equity: | ||||||||
| Common
stock: $ | ||||||||
| Preferred
stock: $ | - | |||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ equity | ||||||||
| Total liabilities and stockholders’ equity | $ | $ | ||||||
See accompanying notes to the unaudited condensed consolidated financial statements
| F-1 |
INDAPTUS THERAPEUTICS, INC.
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | $ | $ | $ | ||||||||||||
| General and administrative | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Warrant repricing | - | - | ( | ) | - | |||||||||||
| Change in fair value of convertible promissory notes | - | ( | ) | - | ( | ) | ||||||||||
| Other income, net | ||||||||||||||||
| Total other income (expense), net | ( | ) | ( | ) | ( | ) | ||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per share, basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average number of shares basic and diluted | ||||||||||||||||
See accompanying notes to the unaudited condensed consolidated financial statements
| F-2 |
INDAPTUS THERAPEUTICS, INC.
Unaudited Condensed Consolidated Statements of Stockholders’ Equity (Deficit)
| Shares* | Amount* | Shares | Amount | in capital* | deficit | Total | ||||||||||||||||||||||
| Common stock | Preferred stock | Additional paid | Accumulated | |||||||||||||||||||||||||
| Shares* | Amount* | Shares | Amount | in capital* | deficit | Total | ||||||||||||||||||||||
| Balance, January 1, 2025 | $ | - | $ | - | $ | $ | ( | ) | $ | |||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Issuance of common stock and warrants, net of issuance costs (Note 6c) | - | - | - | |||||||||||||||||||||||||
| Issuance of common stock, net of issuance costs (Note 6d) | - | - | - | |||||||||||||||||||||||||
| Issuance of commitment shares (Note 6d) | - | - | ( | ) | - | - | ||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance, March 31, 2025 | - | - | ( | ) | ||||||||||||||||||||||||
| Issuance of common stock and warrants, net of issuance costs | - | - | - | |||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance, June 30, 2025 | - | - | ( | ) | ( | ) | ||||||||||||||||||||||
| Issuance of common stock and warrants upon conversion of debt, net of issuance costs | - | - | - | |||||||||||||||||||||||||
| Exercise of pre-funded warrants | - | - | - | - | ||||||||||||||||||||||||
| Issuance of shares of common stock, net of issuance costs (Note 6b) | - | - | - | |||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance, September 30, 2025 | $ | - | $ | - | $ | $ | ( | ) | $ | |||||||||||||||||||
| Balance, January 1, 2026 | $ | $ | $ | $ | ( | ) | $ | |||||||||||||||||||||
| Stock-based compensation | - | - | - | |||||||||||||||||||||||||
| Warrant repricing (Note 6a) | - | - | - | - | - | |||||||||||||||||||||||
| Conversion of Series AA preferred stock (Note 6e) | ( | ) | ( | ) | ( | ) | - | - | ||||||||||||||||||||
| Conversion of Series AAA preferred stock (Note 6e) | ( | ) | ( | ) | ( | ) | - | - | ||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance, March 31, 2026 | - | - | ( | ) | ||||||||||||||||||||||||
| Issuance of shares of common stock, net of issuance costs (Note 6f) | - | - | - | |||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance, June 30, 2026 | - | - | ( | ) | ||||||||||||||||||||||||
| Balance | - | - | ( | ) | ||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance, September 30, 2026 | $ | - | $ | - | $ | $ | ( | ) | $ | |||||||||||||||||||
| Balance | $ | - | $ | - | $ | $ | ( | ) | $ | |||||||||||||||||||
| * |
See accompanying notes to the unaudited condensed consolidated financial statements
| F-3 |
INDAPTUS THERAPEUTICS, INC.
Unaudited Condensed Consolidated Statements of Cash Flows
| 2026 | 2025 | |||||||
| For the Nine Months Ended September 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments
to reconcile net loss to net cash (used in) operating activities: | ||||||||
| Stock-based compensation | ||||||||
| Change in fair value of convertible promissory note | - | |||||||
| Warrant repricing | - | |||||||
| Changes in operating assets and liabilities: | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Accounts payable and other current liabilities | ( | ) | ( | ) | ||||
| Operating lease right-of-use asset and liability, net | - | ( | ) | |||||
| Net cash (used in) operating activities | ( | ) | ( | ) | ||||
| Cash flows from investing activities: | ||||||||
| Certificates of deposit | ( | ) | - | |||||
| Net cash (used in) investing activities | ( | ) | - | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of convertible promissory notes | - | |||||||
| Proceeds from issuance of shares of common stock and warrants | ||||||||
| Proceeds from advance related to future financing | - | |||||||
| Issuance costs | ( | ) | ( | ) | ||||
| Net cash provided by financing activities | ||||||||
| Net increase in cash and cash equivalents | ||||||||
| Cash and cash equivalents, beginning of period | ||||||||
| Cash and cash equivalents, end of period | $ | $ | ||||||
| Noncash investing and financing activities: | ||||||||
| Settlement of convertible debt | $ | - | $ | |||||
| Issuance of commitment shares | $ | - | $ | |||||
| Conversion of Series AA and Series AAA preferred stock | $ | $ | - | |||||
See accompanying notes to the unaudited condensed consolidated financial statements
| F-4 |
INDAPTUS THERAPEUTICS, INC.
Notes to Unaudited Condensed Consolidated Financial Statements
NOTE 1: GENERAL
Indaptus Therapeutics, Inc. and its wholly-owned subsidiaries (Decoy Biosystems, Inc., Intec Pharma Ltd., and Pinnacle Innovation Limited), collectively the “Company”, is a clinical-stage biotechnology company that has historically focused on developing a novel and patented systemically-administered anti-cancer and anti-viral immunotherapy platform. The Company seeks to better understand the relationship between sleep, physical recovery, neurological function, and immune status, which could potentially support future immunotherapy evaluation, patient recovery monitoring, and biomarker research.
During the nine months ended September 30, 2026, the Company entered into a research collaboration with Kunming University of Science and Technology, located in Kunming China, for the study of neurological research and sleep as an extension of its immunotherapy research based on its Decoy platform.
On
December 22, 2025, the Company entered into a Securities Purchase Agreement (the “December 2025 Purchase Agreement”) with
David E. Lazar, pursuant to which he agreed to purchase from the Company
As part of the Investment Transaction, the Company is evaluating opportunities for a strategic transaction involving either an investment in or acquisition of an operating business (a “Post-Investment Transaction”) to create future growth opportunities for both the Company and its stockholders. Any investments in or acquisitions of strategic opportunities will be evaluated based on scientific validation, clinical and regulatory considerations, resource availability, strategic fit, and the Company’s overall long-term objectives.
The Company intends to continue evaluating opportunities related to its existing therapeutic development activities while also assessing how additional research capabilities, strategic investments, and potential business combinations may contribute to its longer-term development strategy. As part of this evaluation process, the Company may explore and selectively expand investments in complementary research initiatives, including areas related to sleep-related biological signals, neurophysiological activity patterns, and other data-driven health technologies, where such opportunities are determined to align with the Company’s strategic objectives. The scope, timing and extent of any such investments will depend on scientific validation, market opportunities, available resources, regulatory considerations and other business factors.
On
June 17, 2026, the Company entered into a Stock Purchase Agreement (the “June 2026 Private Placement”) pursuant to which
the Company agreed to issue and sell an aggregate of
On
August 28, 2026, the Company entered into an amendment to its at the market agreement dated June 1, 2022 (the “ATM Agreement”)
which supersedes and replaces the ATM Agreement (the “Amended ATM Agreement”). Pursuant to the Amended ATM Agreement, the
Company may issue and sell shares of its common stock up to an aggregate maximum offering price of $
On
September 8, 2026, the Company entered into a private placement pursuant to which the Company agreed to issue and sell an aggregate of
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 operations (see below), competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, and dependence on key individuals. In addition, the Company is subject to risks related to its ability to realize the anticipated benefits of the Investment Transaction in the event it is not able to identify and/or pursue a Post-Investment Transaction.
Going concern and management’s plans
The
Company has incurred net losses and negative cash flows from operations since inception and had an accumulated deficit of $
In
prior periods, the Company disclosed that these conditions raised substantial doubt about its ability to continue as a going concern.
During 2026, the Company completed two private placements of its common stock. In June 2026, the Company sold
| F-5 |
As
of September 30, 2026, the Company had cash of $
The Company will need to raise additional capital to fund its operations beyond that period. It may seek such capital through equity or debt financings or other sources, including potential collaborations, licenses and similar arrangements. There can be no assurance that such financing will be available on acceptable terms, or at all.
Reverse Split
On
June 26, 2025,
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
These unaudited 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 the information and notes required by US GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated 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, 2026 and December 31, 2025, the consolidated results of operations and changes in stockholders’ equity for the three and nine months ended September 30, 2026 and 2025, and cash flows for the nine months ended September 30, 2026 and 2025.
These unaudited 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, 2025, as filed with the SEC on March 17, 2026. The consolidated balance sheet data as of December 31, 2025, included in these unaudited condensed consolidated financial statements was derived from the audited financial statements for the year ended December 31, 2025, but does not include all disclosures required by US GAAP for annual financial statements.
The results for the three and nine months ended September 30, 2026, are not necessarily indicative of the results expected for the year ending December 31, 2026.
Principles of consolidation
These unaudited condensed consolidated financial statements include the accounts of Indaptus and its subsidiaries. Intercompany balances and transactions have been eliminated upon consolidation.
Use of estimates
The preparation of these 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 unaudited 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, warrants, pre-funded warrants, and convertible Preferred Stock, which are included under the treasury stock method when dilutive.
| F-6 |
The following number of stock options, warrants, pre-funded warrants, and convertible Preferred Stock 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 | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Warrants | ||||||||||||||||
| Outstanding stock options | ||||||||||||||||
| Pre-funded warrants | ||||||||||||||||
| Preferred stock | - | - | - | |||||||||||||
Cash and cash equivalents
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of September 30, 2026 and December 31, 2025, cash and cash equivalents consist of business checking deposits and an investment in a government money market mutual fund. The Company’s cash balances exceed those that are federally insured, however, the Company believes it is not exposed to significant credit risk due to the financial strength of the depository institutions in which the cash and cash equivalents are held. To date, the Company has not recognized any losses caused by uninsured balances.
Short-term investments
Short-term
investments consist of certificates of deposit. During the nine months ended September 30, 2026, the Company placed an aggregate of
$
Interest
is earned at graduated annual rates that increase with the length of the holding period, ranging from
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 are recorded as a prepaid expense which is amortized or expensed as the contracted services are performed.
Fair value measurement
ASC 820, Fair Value Measurements (“ASC 820”) provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance, fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.
The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:
| Level 1: | Quoted prices in active markets for identical assets or liabilities. | |
| Level 2: | Inputs other than Level 1 prices for similar assets or liabilities that are directly or indirectly observable in the marketplace. | |
| Level 3: | Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. |
| F-7 |
The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. This determination requires significant judgments to be made by the Company.
As of September 30, 2026 and December 31, 2025, the recorded values of cash and cash equivalents, prepaid expenses, accounts payable, and accrued expenses and other liabilities approximated their fair values due to the short-term nature of these items.
During the nine months ended September 30, 2026, the Company repriced outstanding warrants to purchase its common stock. The valuation of the warrants is considered under Level 3 of the fair value hierarchy due to the need to use assumptions in the valuation that are both significant to the fair value measurement and unobservable. See Note 6a for details.
During
the nine months ended September 30, 2026, the Company invested $
Recently issued accounting pronouncements
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. This ASU will require entities to provide enhanced disclosures, in a tabular format, related to certain expense categories included in the statement of operations. The ASU aims to increase transparency and provide investors with more detailed information about the nature of expenses reported on the face of the income statement. The new ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on the related disclosures.
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting. This ASU was issued to enhance consistency in interim reporting for all entities by providing clarity about the current interim reporting requirements and creating a comprehensive list of interim disclosures required under US GAAP. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and amendments can be applied either prospectively or retrospectively. The Company is currently evaluating the impact of the adoption of this standard on its interim disclosures.
NOTE 3: PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets were comprised of the following:
SCHEDULE OF PREPAID EXPENSE AND OTHER CURRENT ASSETS
September 30, 2026 | December 31, 2025 | |||||||
| Prepaid insurance | $ | $ | ||||||
| Prepaid research and development | ||||||||
| Other prepaid expenses | ||||||||
| Deferred transaction costs | - | |||||||
| Other current assets | - | |||||||
| Total prepaid expenses and other current assets | $ | $ | ||||||
NOTE 4: ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES
Accounts payable and other current liabilities were comprised of the following:
SCHEDULE OF ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES
September 30, 2026 | December 31, 2025 | |||||||
| Accounts payable | $ | $ | ||||||
| Accrued employee costs | ||||||||
| Other accrued expenses | ||||||||
| Accrued board fees | ||||||||
| Accrued professional fees | ||||||||
| Delaware franchise taxes payable | - | |||||||
| Accrued research and development | ||||||||
| Total accounts payable and other current liabilities | $ | $ | ||||||
| F-8 |
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 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, 2026 is presented in the table below:
SCHEDULE OF STOCK OPTION ACTIVITY
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Life | Intrinsic Value | |||||||||||||
| Outstanding as of January 1, 2026 | $ | $ | - | |||||||||||||
| Granted | $ | $ | ||||||||||||||
| Forfeited and cancelled | ( | ) | $ | - | - | $ | - | |||||||||
| Outstanding as of September 30, 2026 | $ | $ | ||||||||||||||
| Exercisable as of September 30, 2026 | $ | $ | ||||||||||||||
| Vested and expected to vest as of September 30, 2026 | $ | $ | ||||||||||||||
The following table summarizes the total stock-based compensation expense included in the unaudited condensed consolidated statements of operations for the periods presented:
SCHEDULE OF STOCK BASED COMPENSATION EXPENSES
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Research and development | $ | - | $ | $ | $ | |||||||||||
| General and administrative | ||||||||||||||||
| Total stock-based compensation | $ | $ | $ | $ | ||||||||||||
As
of September 30, 2026, total compensation cost not yet recognized related to unvested stock options was $
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, 2026 are presented in the
table below. The weighted average fair value of stock options issued during the nine months ended September 30, 2026 was $
SCHEDULE OF WEIGHTED AVERAGE INPUTS USED TO MEASURE VALUE OF OPTIONS GRANTED
Weighted average Black Scholes assumptions:
| 2026 | ||||
| Exercise Price | $ | |||
| Expected term (in years) | ||||
| Volatility | % | |||
| Dividend yield | % | |||
| Risk free rate | % | |||
| F-9 |
NOTE 6: CAPITALIZATION
| a) | As
of September 30, 2026 and December 31, 2025, the Company had | |
| As
of September 30, 2026 and December 31, 2025, the Company had | ||
| As
of September 30, 2026 and December 31, 2025, there were warrants outstanding to purchase an aggregate of | ||
| On
February 11, 2026, the Company entered into warrant repricing agreements with certain holders of warrants to purchase an aggregate
of | ||
| In
addition, on February 11, 2026, the Company’s board of directors approved a reduction of the exercise price to $ | ||
| The Company used a Black Scholes model to measure the fair value of the modified warrants immediately before and immediately after the modification using the following weighted average assumptions: |
SCHEDULE OF FAIR VALUE OF THE MODIFIED WARRANTS
| Term (in years) | ||||
| Volatility | % | |||
| Annual Rate of Dividends | % | |||
| Discount Rate (Equiv. Bond Yield) | % |
Following
the warrant repricing, the total outstanding warrants as of
| b) | On
June 1, 2022, the Company entered into an ATM Agreement, which was amended on September 1, 2022 with a sales agent, pursuant to
which the Company may offer and sell, from time to time through the sales agent, shares of the Company’s common stock. The
issuance and sale of common stock by the Company under the ATM Agreement was made pursuant to the Company’s effective
“shelf” registration statement on Form S-3 filed with the SEC on August 13, 2025 and declared effective on August 20,
2025. During 2025 the Company sold |
On
August 28, 2026, the Company entered into a new at the market agreement (the “Amended ATM Agreement”) with the sales
agent, which supersedes and replaces the prior ATM Agreement dated June 1, 2022. Pursuant to the Amended ATM Agreement, the Company may issue and sell shares of its common stock up to an aggregate maximum offering price of $
On August 31, 2026, the Company filed a prospectus supplement, including an accompanying base prospectus dated August 20, 2025, which together form a part of the Company’s shelf registration statement on Form S-3 (File No. 333-289573), initially filed and declared effective by the SEC in August 2025.
Pursuant
to the terms of the Amended ATM Agreement, the Company will pay the sales agent a placement fee equal to
| F-10 |
| c) | On
January 16, 2025, the Company completed a private placement offering pursuant to which the
Company sold and issued to certain investors an aggregate of | |
| d) | On
February 12, 2025, the Company entered into the SEPA with Yorkville, which provides that,
upon the terms and subject to the restrictions and satisfaction of the conditions in the
SEPA, Yorkville is committed to purchase up to an aggregate of $ |
Effective March 11, 2026, the Company terminated the SEPA with Yorkville, and the SEPA is no longer in effect.
| e) | On
December 22, 2025, the Company entered the Purchase Agreement with David E. Lazar pursuant
to which the Company agreed to issue and sell an aggregate of |
The Company determined that the Preferred Stock was not within the scope of ASC 815 as it did not contain any embedded derivatives required to be bifurcated from the Preferred Stock therefore these instruments were equity classified within permanent equity.
In March 2026, all outstanding shares of Preferred Stock were converted to shares of common stock as described above.
| f) | On
June 17, 2026, the Company entered into the June 2026 Private Placement pursuant to which
the Company agreed to issue and sell an aggregate of |
Under the June 2026 Private Placement, the Company was required to prepare and file a registration statement with the SEC covering the resale of such shares of common stock within 90 days following the closing. The Company filed Form S-3 on August 17, 2026, which was declared effective by the SEC on August 25, 2026. The Company agreed to bear all fees and expenses incurred in connection with the registration of the registrable securities. The June 2026 Purchase Agreement contains customary representations, warranties and covenants of the parties. The closing of the Private Placement was subject to customary closing conditions and occurred on the same date.
| g) | On
June 26, 2026, the Company filed Form S-3 to register an aggregate of up to | |
| h) | On
September 8, 2026, the Company entered into a private placement pursuant to which the Company
agreed to issue and sell an aggregate of |
On
October 16, 2026, the Company completed the September 2026 Private Placement, having received the full purchase price from each of
the purchasers and the Company issued an aggregate of
| F-11 |
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.
NOTE 8: SEGMENT INFORMATION
During
the three and nine months ended September 30, 2026 and 2025, the Company operated in
As such, the CODM uses cash forecast models in deciding how to invest in the segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used in assessing performance of the segment.
The following table presents reportable segment loss, including significant expenses regularly provided to the CODM, attributable to the Company’s reportable segment for the three and nine months ended September 30, 2026 and 2025:
SCHEDULE OF REPORTABLE SEGMENT LOSS
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Research and development | ||||||||||||||||
| External research and development | $ | $ | $ | $ | ||||||||||||
| Internal personnel costs | - | |||||||||||||||
| Total research and development | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Other income (expense) | ||||||||||||||||
| Warrant repricing | - | - | ( | ) | - | |||||||||||
| Change in fair value of convertible promissory notes | - | ( | ) | - | ( | ) | ||||||||||
| Other income, net | ||||||||||||||||
| Total other income (expense) | ( | ) | ( | ) | ( | ) | ||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
NOTE 9: RELATED PARTY TRANSACTIONS
On
January 20, 2026, the Company entered into a consulting agreement with N.L.T. Management and Asset Holdings Company Ltd. (the “Consulting
Entity”), an entity controlled by an immediate family member of a former director of the Company. The director resigned from the
Indaptus Therapeutics, Inc. Board on June 5, 2026, but remains a director on the Intec Pharma Ltd. Board. Under the agreement, the Consulting
Entity provides general business advice and services related to business development activities and potential ongoing operations in exchange
for (i) annual consulting fees of $
NOTE 10: SUBSEQUENT EVENTS
The Company evaluated events subsequent to September 30, 2026 through November 13, 2026, which represents the date these condensed consolidated financial statements were issued.
In
October 2026, the Company received the remaining $
The Company concluded that no other events occurred that would require recognition or disclosure in these unaudited condensed consolidated financial statements.
| F-12 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Unless the context indicates otherwise, in this Quarterly Report, the terms “Indaptus,” “the Company,” “we,” “us” and “our” refer to Indaptus Therapeutics, Inc. (formerly Intec Parent, Inc., the successor of Intec Pharma Ltd. following the domestication merger) and, where appropriate, its consolidated subsidiaries following the domestication merger and the reverse merger described in our previous periodic reports. References to “Intec Israel” refer to Intec Pharma Ltd., the predecessor of Indaptus prior to the domestication merger, and references to “Decoy” refer to Decoy Biosystems, Inc., the entity acquired by Indaptus in connection with the reverse merger.
You should read the following discussion and analysis of our financial condition and results of operations along with our consolidated financial statements and the related notes and other financial information included elsewhere in this Quarterly Report and our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on March 17, 2026 (the “2025 Annual Report on Form 10-K”). The following discussion contains forward-looking statements that are subject to risks, uncertainties and assumptions. Please also see the “Cautionary Note Regarding Forward-Looking Statements” section in the forepart of this Quarterly Report.
All information in this Quarterly Report relating to shares or price per share reflects the 1-for-28 reverse stock split effective June 27, 2025.
Overview
We are a clinical-stage biotechnology company that has historically focused on developing a novel and patented systemically-administered anti-cancer and anti-viral immunotherapy platform. During the second quarter of 2026, we also began evaluating our strategic alternatives, including a potential Post-Investment Transaction, involving an investment in or acquisition of an operating business, while continuing to evaluate our existing therapeutic assets and related research initiatives.
During the second quarter of 2026, we discontinued further enrollment in our combination study, there are no participants remaining in any active Decoy20 clinical study, and we substantially reduced activities related to the further development of Decoy20 while we evaluate strategic alternatives for our business and therapeutic assets.
In April 2026, the Company appointed Joe Z. Tsien as a scientific consultant to support the Company’s ongoing evaluation of certain research and data-related initiatives involving sleep-related biological signals, neurophysiological activity patterns, immune-therapeutic response pathways and functional physiological assessment methods. We continue to evaluate how these additional research capabilities may contribute to our longer-term scientific and strategic objectives.
During the second quarter of 2026, we also started a research collaboration with Kunming University of Science and Technology in the areas of neurological research and sleep, which we are evaluating as a complementary research initiative while we continue to evaluate the Company’s Decoy platform and Decoy20 assets from a scientific and strategic perspective, including the existing data, mechanism of action, potential applications, and possible licensing, partnership or other strategic opportunities.
Impact of Macroeconomic Conditions on our Operations
Economic developments such as inflation and interest rates have negatively affected the global financial markets and may reduce our ability to access capital, which could negatively impact our short-term and long-term liquidity. The ultimate impact of current economic conditions is highly uncertain and subject to change. While it is unknown how long these conditions will last and what the complete financial effect will be to us, capital raise efforts and additional development of our technologies may be negatively affected. In addition, our business operations expose us to risks associated with public health crises and epidemics/pandemics.
Components of Operating Results
Research and Development Expenses
Research and development expenses account for a significant portion of our operating expenses. Research and development expenses consist primarily of fees paid to contract research organizations, or CROs, and contract manufacturing organizations, or CMOs, as well as compensation expenses for certain employees involved in the planning, managing, and analyzing the work of the CROs and CMOs and materials used for research and development activities. We expense research and development costs as incurred.
We accrue expenses for manufacturing, preclinical studies and clinical trial activities performed by third parties based on estimates of services received and efforts expended pursuant to agreements with CROs, CMOs, and other outside service providers. We determine these estimates 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, we record the payments as a prepaid asset, which will be amortized or expensed as the contracted services are performed. However, actual costs and timing of these activities are highly uncertain, subject to risks and may change depending upon a number of factors, including our clinical development plan.
Currently, we have discontinued further clinical development of Decoy20 and there are no participants remaining in the study. We do not have any current plans to initiate a new clinical trial. As a result, we expect our research and development expenses to decrease in the short term.
Our expenditures on future nonclinical and clinical development programs are subject to numerous uncertainties in timing and cost to completion. The duration, costs and timing of preclinical studies and clinical trials and development of product candidates will depend on a variety of factors, including:
| ● | the timing and receipt of regulatory approvals; |
| ● | the scope, rate of progress and expenses of preclinical studies and clinical trials and other research and development activities; |
| 1 |
| ● | potential safety monitoring and other studies requested by regulatory agencies; and |
| ● | significant and changing government regulation. |
The process of conducting the necessary clinical research to obtain FDA and other regulatory approval is costly and time consuming and the successful development of product candidates is highly uncertain. As a result of these risks and uncertainties, we are unable to determine with any degree of certainty the duration and completion costs of our research and development projects, or if, when, or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval. We may never succeed in achieving regulatory approval for any of our product candidates.
General and Administrative Expenses
General and administrative expenses include compensation, employee benefits, and stock-based compensation, finance administration and human resources, facility costs, professional service fees, and other general overhead costs to support our operations.
With the discontinuation and winding down of the clinical development of Decoy20, we expect our general and administrative expenses to decrease in the short term, however, this may be offset by additional costs related to any Post-Investment Transaction.
General and administrative expenses also include additional expenses as a result of operating as a public company, including expenses related to compliance with the rules and regulations of the Nasdaq Capital Market and the SEC, additional director and officer insurance expenses, investor relations activities, and other administrative and professional services.
Other Income (Expense), Net
Other income (expense), net includes interest earned on deposits and investments and other items of income, expense, gain and loss that are incidental to the core operations of the Company.
Results of Operations
For the three months ended September 30, 2026 compared to the three months ended September 30, 2025
The following table sets forth our results of operations for the three months ended September 30, 2026 and 2025 and the relative dollar and percentage change between the two periods.
Three Months Ended September 30, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 271,204 | $ | 1,517,723 | $ | (1,246,519 | ) | -82 | % | |||||||
| General and administrative | 864,663 | 1,130,764 | (266,101 | ) | -24 | % | ||||||||||
| Total operating expenses | 1,135,867 | 2,648,487 | (1,512,620 | ) | -57 | % | ||||||||||
| Loss from operations | (1,135,867 | ) | (2,648,487 | ) | 1,512,620 | 57 | % | |||||||||
| Other income (expense), net | 87,089 | (326,630 | ) | 413,719 | -127 | % | ||||||||||
| Net loss | $ | (1,048,778 | ) | $ | (2,975,117 | ) | $ | 1,926,339 | 65 | % | ||||||
| Net loss available to common shareholders per share of common stock, basic and diluted | $ | (0.01 | ) | $ | (2.98 | ) | $ | 2.97 | 100 | % | ||||||
| Weighted average number of shares used in calculating net loss per share, basic and diluted | 133,242,324 | 997,038 | 132,245,286 | 13264 | % | |||||||||||
Research and Development Expenses
Our research and development expenses for the three months ended September 30, 2026 and 2025 were $0.3 million and $1.5 million, respectively, a decrease of $1.2 million or 82%, primarily attributable to a decrease in clinical costs related to our Phase 1 study of Decoy20 as well as a decrease in payroll and related expenses due to reductions to headcount and base salaries.
General and Administrative Expenses
Our general and administrative expenses for the three months ended September 30, 2026 and 2025 were $0.9 million and $1.1 million, respectively, representing a decrease of $0.3 million or 24%. The decrease was primarily attributable to a decrease in certain expenses related to the transition of management as well as a decrease in payroll and related expenses due to reductions to headcount and base salaries.
| 2 |
Other Income (Expense), net
The change in our other income (expense), net between three months ended September 30, 2026 and 2025 was approximately $0.4 million and consists primarily of the change in the fair value of outstanding convertible promissory notes during the three months ended September 30, 2025 with no similar charges during the three months ended September 30, 2026.
For the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025
The following table sets forth our results of operations for the nine months ended September 30, 2026 and 2025 and the relative dollar and percentage change between the two periods.
| For the Nine Months Ended | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 1,125,465 | $ | 6,495,677 | $ | (5,370,212 | ) | -83 | % | |||||||
| General and administrative | 3,978,854 | 5,182,132 | (1,203,278 | ) | -23 | % | ||||||||||
| Total operating expenses | 5,104,319 | 11,677,809 | (6,573,490 | ) | -56 | % | ||||||||||
| Loss from operations | (5,104,319 | ) | (11,677,809 | ) | 6,573,490 | 56 | % | |||||||||
| Other income (expense), net | (280,390 | ) | (1,058,657 | ) | 778,267 | -74 | % | |||||||||
| Net loss | $ | (5,384,709 | ) | $ | (12,736,466 | ) | $ | 7,351,757 | 58 | % | ||||||
| Net loss available to common shareholders per share of common stock, basic and diluted | $ | (0.06 | ) | $ | (18.48 | ) | $ | 18.42 | 100 | % | ||||||
| Weighted average number of shares used in calculating net loss per share, basic and diluted | 87,494,438 | 689,174 | 86,805,264 | 12596 | % | |||||||||||
Research and Development Expenses
Our research and development expenses for the nine months ended September 30, 2026 and 2025 were $1.1 million and $6.5 million, respectively, a decrease of $5.4 million or 83%, primarily attributable to a decrease in clinical costs related to our Phase 1 study of Decoy20 as well as a decrease in payroll and related expenses due to reductions to headcount and base salaries.
General and Administrative Expenses
Our general and administrative expenses for the nine months ended September 30, 2026 and 2025 were $4.0 million and $5.2 million, respectively, representing a decrease of $1.2 million or 23%. The decrease was primarily attributable to a decrease in certain expenses related to the transition of management as well as a decrease in payroll and related expenses due to reductions to headcount and base salaries, partially offset by a $0.5 million termination fee incurred in connection with the termination of the ATM Agreement.
Other Income (Expense), net
The change in our other income (expense), net between the nine months ended September 30, 2026 and 2025 was approximately $0.8 million and consists primarily of the change in the fair value of outstanding convertible promissory notes during the nine months ended September 30, 2025 offset by the warrant repricing in February 2026.
Liquidity and Capital Resources
We do not currently have any approved products and have never generated any revenue from product sales. Since our inception, we have funded our operations primarily through public and private offerings of our equity securities.
In June 2022, we entered into the ATM Agreement with H.C Wainwright & Co. (“Wainwright”), which was amended on September 1, 2022, pursuant to which we may offer and sell, from time to time through Wainwright, shares of our common stock for aggregate gross proceeds of up to $6.3 million. The issuances and sales of common stock by us under the ATM Agreement were made pursuant to “shelf” registration statements on Form S-3 filed with the SEC on September 1, 2022 and declared effective on September 9, 2022 and most recently on August 13, 2025 and declared effective on August 20, 2025. On June 8, 2026, the ATM Agreement was terminated and we paid a termination fee of $0.5 million. On August 28, 2026, the Company entered into an amendment to its at the market agreement pursuant to which the Company may issue and sell shares of its common stock up to an aggregate maximum offering price of $100.0 million. As of the date of this Quarterly Report, we have sold a cumulative 525,428 shares of our common stock for aggregate gross proceeds of approximately $2.7 million.
| 3 |
In January 2025, we completed a private placement (the “January 2025 Financing”) for the sale and issuance of an aggregate of: (i) 75,335 shares of our common stock and (ii) warrants to purchase 75,335 shares of common stock. The shares and warrants were sold on a combined basis for consideration of $29.82 for one share and one warrant for aggregate gross proceeds of approximately $2.25 million.
In February 2025, we entered into the SEPA with Yorkville, 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 SEPA. Upon execution of the SEPA, we issued to Yorkville 10,927 commitment shares. As of March 16, 2026, we sold and issued 89,902 shares of common stock under the SEPA for aggregate net proceeds of approximately $1.74 million, after deducting offering expenses in the amount of approximately $0.1 million. Effective March 11, 2026, we terminated the SEPA with Yorkville, and the SEPA is no longer in effect.
In June 2025, we completed a private placement (the “June 2025 Financing”) of convertible notes to certain investors, including our then Chief Executive Officer, which automatically converted in July 2025 into 501,566 shares of our common stock and pre-funded warrants to purchase 190,795 shares of our common stock at a conversion price of $8.302 per share. In connection with the offering, we also issued to the investors warrants to purchase 1,384,722 shares of our common stock, exercisable at $8.302 per share and expiring on July 27, 2030. The total gross proceeds were approximately $5.7 million and placement agent fees and other offering expenses were approximately $0.8 million. As of the date hereof, all pre-funded warrants have been exercised into an aggregate of 190,795 shares of common stock.
On December 22, 2025, the Company entered into the Purchase Agreement with Mr. Lazar, pursuant to which he agreed to purchase from the Company a series of Preferred Stock at a purchase price of $6.00 per share of Preferred Stock for aggregate gross proceeds of $6.0 million, subject to the terms and conditions thereunder. The offering closed on December 23, 2025. The shares of convertible preferred stock issued in December 2025 were converted into 111,000,000 shares of common stock in March 2026.
On June 17, 2026, the Company entered into the Private Placement pursuant to which the Company agreed to issue and sell an aggregate of 20,000,000 shares of its common stock at a purchase price of $0.60 per share. The aggregate gross proceeds to the Company from the Private Placement were approximately $12.0 million before deducting offering expenses payable by the Company. The Private Placement was conducted directly by the Company, and no commissions or other compensation were paid in connection with it.
On September 8, 2026, the Company entered into a private placement pursuant to which the Company agreed to issue and sell an aggregate of 20,338,974 shares of the Company’s common stock, par value $0.01 per share, for aggregate gross proceeds of approximately $24.0 million, before deducting offering expenses. The private placement closed on October 16, 2026.
We believe that our cash and cash equivalents of approximately $26.6 million as of September 30, 2026, together with approximately $4.0 million held in certificates of deposit that are available for withdrawal and $3.5 million received in October 2026 from the Private Placement,will provide us with sufficient liquidity to fund our operating expenses and capital expenditure requirements through the year ended December 31, 2027. During this period, we may also seek to further strengthen our capital position through additional equity financings to further support our operational goals or maintain strategic flexibility. Accordingly, we believe that our cash resources are adequate for our anticipated near-term operating needs.
These expectations are based on management’s current assumptions, which involve risks and uncertainties, and actual resource requirements may differ materially. If our liquidity needs exceed current projections, or if additional capital cannot be obtained on acceptable terms, we may adjust the scale or timing of our research and development activities accordingly. For additional discussion of our liquidity and financial condition, see Note 1 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report.
We have no ongoing material financing commitments, such as lines of credit or guarantees, that are expected to affect our liquidity over the next five years.
Cash Flows
Operating Activities
Net cash used in operating activities was approximately $10.4 million for the nine months ended September 30, 2026, compared with net cash used in operating activities of approximately $11.6 million for the nine months ended September 30, 2025. The change is primarily attributable to the reduction in our net loss of approximately $7.4 million, and the decrease in our accounts payable and other current liabilities of approximately $4.8 million. The decrease in our accounts payable and other current liabilities was primarily a result of the payment of certain expenses accrued as of December 31, 2025 during the nine months ended September 30, 2026, combined with significantly reduced operating expenses due to the wind-down of the Phase 1 trial and decreases in executive compensation.
Investing Activities
During the nine months ended September 30, 2026, the Company invested $4.0 million in certificates of deposit.
Financing Activities
Net cash provided by financing activities for the nine months ended September 30, 2026 was approximately $32.5 million, which was provided by the issuance and sale of approximately $12.0 million of our common stock pursuant to the June 2026 Private Placement and approximately $20.5 million raised pursuant to the September 2026 Private Placement, net of issuance costs of $0.1 million.
Funding Requirements
We believe that our existing cash and cash equivalents as of September 30, 2026 are adequate to fund our ongoing activities through the year ended December 31, 2027 and we expect to continue to incur operating expenses in the future in connection with our ongoing activities and our plans to pursue a Post-Investment Transaction.
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We will need to continue to rely on additional financing to achieve our business objectives. Adequate additional financing may not be available to us on acceptable terms, or at all. For example, the trading prices for our and other biopharmaceutical companies’ stock have been highly volatile as a result of current macroeconomic conditions and market volatility. As a result, we may face difficulties raising capital through sales of our common stock on acceptable terms, if at all. If we are unsuccessful in securing sufficient financing, we may need to delay, reduce, or eliminate our research and development programs, which could adversely affect our business prospects, or cease operations. For additional information, see Note 1 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly 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 unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates that affect the reported amounts of our assets, liabilities and expenses. Significant accounting policies employed, including the use of estimates, are presented in the notes to our annual financial statements included in our 2025 Annual Report on Form 10-K. 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.
Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies” in our 2025 Annual Report on Form 10-K. During the nine months ended September 30, 2026, there were no material changes to our critical accounting policies from those discussed in our 2025 Annual Report on Form 10-K.
Recently Issued Accounting Pronouncements
Certain recently issued accounting pronouncements are discussed in Note 2, Significant Accounting Policies, to the accompanying unaudited condensed consolidated financial statements.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
We are a smaller reporting company as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are not required to provide the information otherwise required under this Item 3.
Item 4. Controls and Procedures
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, evaluated, as of September 30, 2026, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2026.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended September 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II. OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.
There are currently no pending material legal proceedings, and we are currently not aware of any legal proceedings or claims against us or our property that we believe will have any significant effect on our business, financial position or operating results. None of our officers or directors is a party against us in any legal proceeding.
Item 1A. Risk Factors
Except as set forth below in this Item 1A and the Risk Factors included in our previous filings made with the SEC, there have been no material changes to our risk factors from those disclosed in “Part I. Item 1A. Risk Factors” in the Form 10-K filed with the SEC on March 17, 2026.
Recent changes in executive management may create uncertainties during the Company’s transition period.
As previously disclosed, on March 23, 2026, certain securities previously held by Mr. David E. Lazar were transferred to third-party purchasers pursuant to the terms of the applicable Securities Purchase Agreement. Following these transactions, changes to the Company’s executive management occurred, including the resignation of Messrs. Lazar and Jeffrey Meckler from their executive officer positions. In addition, on April 16, 2026, Dr. Michael Newman, resigned as Chief Scientific Officer of the Company.
During this transition period, the Company may experience operational, organizational and governance-related challenges as the current management team continues to evaluate corporate priorities, internal processes, and capital allocation initiatives. In addition, there may be further changes to the Company’s executive management team in the future. Any such developments could disrupt the Company’s operations and strategic initiatives and adversely affect the Company’s business, financial condition, and results of operations.
Our future business prospects and operations are uncertain, and we may be unable to identify or successfully execute a viable development program or strategic alternative.
As of the date of this Quarterly Report, we have discontinued further enrollment in our combination study, there are no participants remaining in any ongoing Decoy20 clinical study, and we currently have no active clinical development programs. We have also substantially reduced activities relating to the further development of Decoy20 pending additional financing, strategic review and/or other business developments. As a result, the future direction and viability of our business and operations are subject to substantial uncertainty.
We are evaluating strategic alternatives for our Decoy20 program and broader business operations, which may include strategic transactions, research collaborations, investments in or acquisitions of other businesses, and other potential growth opportunities.
We are also evaluating our existing therapeutic development assets and certain limited nonclinical, preclinical, research and data-oriented initiatives. In April 2026, we appointed Joe Z. Tsien as a scientific consultant to support the Company’s ongoing evaluation of certain research and data-related initiatives involving sleep-related biological signals, neurophysiological activity patterns, immune-therapeutic response pathways and functional physiological assessment methods. However, we have not determined which, if any, of these strategic alternatives or initiatives we will pursue, and there can be no assurance that we will identify a suitable opportunity, obtain the financing or other resources necessary to pursue it, or successfully negotiate and complete any proposed transaction or collaboration. Any opportunity we pursue may require substantial additional capital, involve significant scientific, clinical, regulatory, operational and integration risks or fail to produce commercially viable products or meaningful revenues.
Our evaluation process may be lengthy, costly and disruptive to our existing operations and may divert management’s attention and resources. If we are unable to secure additional financing, identify and implement a viable strategic direction, or derive value from our existing assets or new initiatives, we may be required to further reduce or discontinue operations, dispose of assets on unfavorable terms, pursue a restructuring, wind down our operations, or seek protection under applicable bankruptcy laws. Accordingly, our business, financial condition, and results of operations could be materially and adversely affected and investors may incur losses in their investments in our securities.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
(a) On September 8, 2026, the Company entered into a private placement pursuant to which the Company agreed to issue and sell an aggregate of 20,338,974 shares of the Company’s common stock, par value $0.01 per share, for aggregate gross proceeds of approximately $24.0 million. The shares were offered and sold in reliance upon exemptions from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder. The private placement closed on October 16, 2026.
(b) None.
(c) None.
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Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During
the three months ended September 30, 2026, no director or “officer” (as defined in Rule 16a-1(f) under the Exchange Act)
of the Company
Item 6. Exhibits
| Exhibit No. | Exhibit Description | |
| 31.1* | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended | |
| 31.2* | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a), promulgated under the Securities Exchange Act of 1934, as amended | |
| 32.1# | Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
| 32.2# | Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
| 101.INS* | Inline XBRL Instance Document | |
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL document and included in Exhibit 101) |
* Filed herewith
# Furnished herewith
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Indaptus Therapeutics, Inc. | ||
| Date: November 13, 2026 | By: | /s/ Junyi Dai |
| Junyi Dai | ||
Chief Executive Officer (Principal Executive Officer) | ||
| Date: November 13, 2026 | By: | /s/ Yu Ding |
| Yu Ding | ||
Chief Financial Officer (Principal Financial and Accounting Officer) | ||
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