Indaptus Therapeutics, Inc.

What they do

Indaptus historically developed a patented, systemically administered anti-cancer and anti-viral immunotherapy based on attenuated and killed non-pathogenic Gram-negative bacteria designed to activate innate and adaptive immunity with reduced intravenous toxicity. Its lead candidate, Decoy20, entered a Phase 1 trial in advanced solid tumors in 2023, and a combination study with BeOne's anti-PD-1 antibody tislelizumab was launched after monotherapy enrollment concluded in May 2025. As of the 2025 Form 10-K and second-quarter 2026 update, the company has discontinued further enrollment in the combination study, has no participants remaining in any Decoy20 clinical study, and has no current plans to initiate a new trial. It now describes itself as a biotechnology company dedicated to immunotherapy research and is also pursuing a research collaboration with Kunming University of Science and Technology in neurological research and sleep.

Revenue drivers

• Decoy20 therapeutic program — The company's only clinical-stage asset, a systemically administered immunotherapy tested in advanced solid tumors; no revenue is generated because clinical development has been discontinued and no participants remain in any Decoy20 study.
• Decoy platform licensing or partnering — Management states it is evaluating the existing Decoy platform and Decoy20 data, mechanism of action and potential applications for possible licensing, partnership or other strategic opportunities; no such agreement has been disclosed.
• Post-Investment Transaction — Indaptus plans to pursue an investment in or acquisition of an operating business, which would become the company's source of commercial operations and cash flow if consummated; no target or transaction has been identified.
• Research collaboration — A research collaboration with Kunming University of Science and Technology in neurological research and sleep, described as a complementary research initiative rather than a revenue-producing activity.

Recent performance

Net loss fell to approximately $1.8 million for the second quarter of 2026 from $5.2 million in the same period of 2025, and to approximately $4.3 million for the first six months of 2026 from $9.8 million in 2025. Research and development expenses decreased 83% to approximately $0.4 million in the second quarter of 2026, and general and administrative expenses decreased 37% to approximately $1.4 million. As of June 30, 2026, the company reported approximately $7.6 million in cash and cash equivalents and $4.0 million in short-term investments, or about $11.6 million combined, following a June 2026 private placement of 20,000,000 common shares at $0.60 per share for gross proceeds of approximately $12.0 million. Annual net loss was $20.8 million in 2025, compared with $15.0 million in 2024, and operating cash flow was negative $14.8 million in 2025. Diluted EPS was $18.09 for the first six months of 2025 and $0.07 for the first six months of 2026.

Strategy

The stated direction centers on evaluating strategic alternatives for the Decoy platform and broader operations, including research collaborations, investments in or acquisitions of operating businesses, and other growth opportunities. The December 2025 Lazar investment of $6.0 million in Series AA and Series AAA Preferred Stock, convertible into a combined 111,000,000 common shares, made Mr. Lazar the beneficial owner of approximately 96.4% of common stock on an as-converted and fully diluted basis and shifted board control to his designees. Management says it is reviewing the Decoy20 data, mechanism of action and potential applications for possible licensing, partnership or other strategic opportunities, and that capital allocation will proceed based on scientific validation, strategic fit, regulatory considerations and available resources. The company also started a research collaboration in neurological disorders and sleep and, in April 2026, appointed Joe Z. Tsien as a scientific consultant to support evaluation of sleep-related biological signals, neurophysiological activity patterns and immune-therapeutic response pathways.

Risks

• Dilution and voting control — Full conversion of the Preferred Stock would issue 111.0 million common shares representing approximately 96.4% of shares outstanding on a fully diluted basis, giving Mr. Lazar effective voting control and significantly diluting existing holders.
• No active clinical program — The company has discontinued further enrollment in the Decoy20 combination study, has no participants remaining in any Decoy20 clinical study and has no current plans to initiate a new trial.
• Failure to complete a Post-Investment Transaction — The success of the Investment Transaction depends on identifying, pursuing and consummating a transaction with a Target Company, which may not occur before capital resources are depleted.
• Liquidity and going-concern risk — The company has a history of losses, negative operating cash flow of $14.8 million in 2025, and may need additional equity or debt financing to support operations and strategic objectives.

Outlook

Management states that the company intends to allocate capital in a disciplined manner based on scientific validation, strategic fit, regulatory considerations and available resources. It expects research and development expenses to decrease in the short term because clinical development of Decoy20 has been discontinued. The company may seek additional public or private equity or debt financing to support operations and strategic objectives. Success is stated to depend on identifying and completing a Post-Investment Transaction involving an operating business.