Indaptus Therapeutics(INDP) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of approximately $4.5 million, compared to a net loss of$3.8 million for the same period in 2024, representing an increase of 18.9%[19] - The net loss for Q1 2025 was $4.53 million, representing a 19.1$3.81 million in Q1 2024[74] - The net loss per share for Q1 2025 was $(0.32), a decrease of 28.9$(0.45) in Q1 2024[74] Operating Expenses - Total operating expenses for the first quarter of 2025 were $4.57 million, up from$3.94 million in the first quarter of 2024, reflecting a year-over-year increase of 16.0%[19] - General and administrative expenses for Q1 2025 were approximately $1.76 million, a decrease of 25.1$2.35 million in Q1 2024, mainly due to reduced payroll and legal fees[78] - Total stock-based compensation expense for the three months ended March 31, 2025, was $240,891, a decrease of 69.0$774,691 for the same period in 2024[43] Research and Development - Research and development expenses increased significantly to $2.81 million in Q1 2025, compared to$1.59 million in Q1 2024, marking a rise of 76.7%[19] - Research and development expenses for Q1 2025 were approximately $2.81 million, an increase of 76.7$1.59 million in Q1 2024, primarily due to costs associated with the Phase 1 clinical trial[77] Cash and Liquidity - The company's cash and cash equivalents decreased to $3.89 million as of March 31, 2025, down from$5.79 million at the end of 2024, a decline of 32.8%[17] - The company had an accumulated deficit of approximately $65.0 million as of March 31, 2025, up from$60.4 million at the end of 2024[27] - The company anticipates needing additional capital to fund ongoing activities beyond the second quarter of 2025, with potential financing through equity or debt, which may lead to substantial dilution for stockholders[86] Financing Activities - The Company completed a private placement offering on January 16, 2025, raising approximately $2.0 million after expenses by issuing 2,109,383 shares of common stock[46] - A private placement in January 2025 raised approximately$2.25 million through the sale of 2,109,383 shares and warrants[82] - A registered direct offering in November 2024 generated gross proceeds of approximately $2.135 million from the sale of 1,817,017 shares and warrants[83] - In August 2024, the company completed a registered direct offering, selling 1,643,837 shares of common stock and issuing unregistered warrants, resulting in gross proceeds of approximately$3.0 million[84] Assets and Liabilities - As of March 31, 2025, the company had total assets of $5.41 million, down from$7.34 million at the end of 2024, a decrease of 26.3%[17] - Accounts payable and other current liabilities decreased to $2,552,379 as of March 31, 2025, down from$3,309,717 as of December 31, 2024, reflecting a 22.8% reduction[41] Future Outlook - The company plans to secure additional capital through collaborations, strategic alliances, or public/private financing to fund ongoing activities beyond Q2 2025[27] - Future capital requirements will depend on various factors, including the success of clinical trials and the ability to secure financing under acceptable terms[92] - Operating expenses are expected to continue increasing, particularly with ramping up clinical development activities and hiring additional personnel[90] Clinical Development - As of May 13, 2025, the company had enrolled 13 participants in the single-dose study and 32 participants in the weekly dosing study of Decoy20[62] - The company initiated a Phase 1 Combination Study of Decoy20 with Tislelizumab in March 2025, following a clinical supply agreement with BeOne Medicines[63] Cost Management - The company began implementing a cost-reduction plan in May 2025, focusing on essential activities and reducing non-essential expenses[91] - The total future payments for operating lease obligations as of March 31, 2025, were approximately $0.06 million due in the next twelve months[94] - The company has no off-balance sheet arrangements as defined under SEC rules[95]