Indaptus Therapeutics Reports Fourth Quarter and Year-End 2022 Financial Results and Provides Corporate Update Enrollment Underway in Phase 1 Clinical Trial of Decoy20 for Treatment of Solid Tumors with First Patient Dos

Therapeutics Reports Fourth Quarter and Year-End 2022 Financial Results and Provides Corporate Update

Underway in Phase 1 Clinical Trial of Decoy20 for Treatment of Solid Tumors with First Patient Dosed In March 2023

YORK (March 17, 2023) - Indaptus Therapeutics, Inc. (Nasdaq: INDP) ("Indaptus" or the "Company"), today announced

financial results for the fourth quarter and fiscal year ended December 31, 2022 and provided a corporate update.

the initiation of our INDP-D101 trial at the end of December 2022 and the subsequent dosing of our first patient in the first cohort,

we are well underway in our Phase 1 trial of Decoy20 for the treatment of solid tumors," said Jeffrey Meckler, chief executive

officer of Indaptus. "Following the initial dosing we were encouraged to learn that the subject experienced manageable and expected

adverse events related to the immune response we anticipated. We are looking forward to analyzing the data generated from that first

patient and finishing the first arm of the trial per the protocol. As we continue to bring new centers online and enroll patients, we

will continue to prudently manage our cash position, and update stakeholders on our progress as it develops."

highlights from Q4 2022 to date:

Highlights for Fourth Quarter and Fiscal Year Ended December 31, 2022

and development expenses for the three-month period ended December 31, 2022, were approximately $1.9 million, an increase of approximately

$0.9 million, or approximately 90%, compared with approximately $1.0 million in the three-month period ended December 31, 2021. Research

and development expenses for the twelve-month period ended December 31, 2022, were approximately $6.3 million, an increase of approximately

$3.8 million, or approximately 150%, compared with approximately $2.5 million in the twelve-month period ended December 31, 2021. The

increase in each of the three and twelve-month periods was primarily due to increased payroll and related expenses, share-based compensation,

Phase 1 clinical trial activities including the IND preparation and submission, and costs associated with the manufacturing processes

of our lead clinical candidate.

and administrative expenses for the three-month period ended December 31, 2022, were approximately $2.2 million, a decrease of approximately

$0.1 million, or approximately 4%, compared with approximately $2.3 million in the three-month period ended December 31, 2021. General

and administrative expenses for the twelve-month period ended December 31, 2022, were approximately $8.6 million, an increase of approximately

$3.4 million, or approximately 65%, compared to approximately $5.2 million for the twelve-month period ended December 31, 2021. The increase

in the twelve-month period was primarily due to increased payroll and related expenses, stock-based compensation expense resulting from

increased headcount of our executive team, directors' and officers' insurance expenses, professional fees and other expenses

associated with being a public company following the merger.

per share for the twelve-month period ended December 31, 2022, was approximately $1.73 compared with approximately $1.89 for the twelve-month

period ended December 31, 2021.

of December 31, 2022, the Company had cash and cash equivalents and marketable securities of approximately $26.4 million. As of December

31, 2021, the Company had cash and cash equivalents of approximately $39.1 million. The Company expects that its current cash, cash equivalents

and marketable securities will support its ongoing operating activities into the second quarter of 2024. This cash runaway guidance is

based on the Company's current operational plans and excludes any additional funding and any business development activities that

may be undertaken. Indaptus continues to assess all financing options that would support its corporate strategy.

cash used in operating activities was approximately $13.1 million for the twelve-month period ended December 31, 2022, compared with

net cash used in operating activities of approximately $11.3 million for the twelve-month period ended December 31, 2021. The approximately

$1.8 million increase in net cash used was primarily attributable to expenses related to research and development activities in connection

with the Phase 1 clinical trial and general and administrative expenses associated with being a public company following the merger.

was no net cash provided by financing activities for the twelve-month period ended December 31, 2022. Net cash provided by financing

activities was approximately $48.3 million for the year ended December 31, 2021 which was primarily due to the merger and the private

placement that closed in August 2021 as well as a series of SAFEs (Simple Agreements for Future Equity) that was issued to accredited

investors at the effective time of the merger.

Indaptus Therapeutics

Therapeutics has evolved from more than a century of immunotherapy advances. The Company's novel approach is based on the hypothesis

that efficient activation of both innate and adaptive immune cells and pathways and associated anti-tumor and anti-viral immune responses

will require a multi-targeted package of immune system-activating signals that can be administered safely intravenously (i.v.). Indaptus'

patented technology is composed of single strains of attenuated and killed, non-pathogenic, Gram-negative bacteria producing a multiple

Toll-like receptor (TLR) agonist Decoy platform. The products are designed to have reduced i.v. toxicity, but largely uncompromised ability

to prime or activate many of the cells and pathways of innate and adaptive immunity. Decoy products represent an antigen-agnostic technology

that have produced single-agent activity against metastatic pancreatic and orthotopic colorectal carcinomas, single agent eradication

of established antigen-expressing breast carcinoma, as well as combination-mediated eradication of established hepatocellular carcinomas

and non-Hodgkin's lymphomas in standard pre-clinical models, including syngeneic mouse tumors and human tumor xenografts. In pre-clinical

studies tumor eradication was observed with Decoy products in combination with anti-PD-1 checkpoint therapy, low-dose chemotherapy, a

non-steroidal anti-inflammatory drug, or an approved, targeted antibody. Combination-based tumor eradication in pre-clinical models produced

innate and adaptive immunological memory, involved activation of both innate and adaptive immune cells, and was associated with induction

of innate and adaptive immune pathways in tumors after only one i.v. dose of Decoy product, with associated "cold" to "hot"

tumor inflammation signature transition. IND-enabling, nonclinical toxicology studies demonstrated safe i.v. administration without sustained

induction of hallmark biomarkers of cytokine release syndromes, possibly due to passive targeting to liver, spleen, and tumor, followed

by rapid elimination of the product. Indaptus' Decoy products have also produced significant single agent activity against chronic

hepatitis B virus (HBV) and chronic human immunodeficiency virus (HIV) infections in pre-clinical models.

press release contains forward-looking statements with the meaning of the Private Securities Litigation Reform Act. These include statements

regarding management's expectations, beliefs and intentions regarding, among other things: our expectations and plans regarding

the Phase 1 clinical trial of Decoy20, including the timing and design thereof; the plans and objectives of management for future operations;

our research and development activities and costs; the sufficiency of our cash, cash equivalents and marketable securities to fund our

ongoing activities; and our assessment of financing options to support our corporate strategy. Forward-looking statements can be identified

by the use of forward-looking words such as "believe", "expect", "intend", "plan", "may",

"should", "could", "might", "seek", "target", "will", "project",

"forecast", "continue" or "anticipate" or their negatives or variations of these words or other comparable

words or by the fact that these statements do not relate strictly to historical matters. Because forward-looking statements relate to

matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause our actual results

to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause actual

activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but

not limited to the following: our limited operating history; the need for, and our ability to raise, additional capital given our lack

of current cash flow; our clinical and preclinical development, which involves a lengthy and expensive process with an uncertain outcome;

our incurrence of significant research and development expenses and other operating expenses, which may make it difficult for us to attain

profitability; our pursuit of a limited number of research programs, product candidates and specific indications and failure to capitalize

on product candidates or indications that may be more profitable or have a greater likelihood of success; our ability to obtain and maintain

regulatory approval of any product candidate; the market acceptance of our product candidates; our reliance on third parties to conduct

our preclinical studies and clinical trials and perform other tasks; our reliance on third parties for the manufacture of our product

candidates during clinical development; our ability to successfully commercialize Decoy20 or any future product candidates; our ability

to obtain or maintain coverage and adequate reimbursement for our products; the impact of legislation and healthcare reform measures

on our ability to obtain marketing approval for and commercialize Decoy20 and any future product candidates; product candidates of our

competitors that may be approved faster, marketed more effectively, and better tolerated than our product candidates; our ability to

adequately protect our proprietary or licensed technology in the marketplace; the impact of, and costs of complying with healthcare laws

and regulations, and our failure to comply with such laws and regulations; information technology system failures, cyberattacks or deficiencies

in our cybersecurity; and unfavorable global economic conditions. These and other important factors discussed under the caption "Risk

Factors" included in our most recent Annual Report on Form 10-K filed with the SEC on March 17, 2023, and our other filings with

the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release.

All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary

statements included in this press release. We undertake no obligation to update or revise forward-looking statements to reflect events

or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, except as required by applicable

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