Indaptus Therapeutics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net loss decreased to approximately $1.0 million for the third quarter of 2026, compared to approximately $3.0 million for the same period in 2025.
• Net loss for the first nine months of 2026 was approximately $5.4 million, a decrease from approximately $12.7 million in 2025.
• Basic and diluted net loss per share was $0.01 for the third quarter of 2026 and $0.06 for the first nine months of 2026, compared to $2.98 and $18.48, respectively, in 2025.
• Research and development expenses decreased 82% to approximately $0.3 million in Q3 2026 (from $1.5 million in 2025) and 83% to approximately $1.1 million for the first nine months of 2026 (from $6.5 million in 2025).
• General and administrative expenses decreased 24% to approximately $0.9 million in Q3 2026 (from $1.1 million in 2025) and 23% to approximately $4.0 million for the first nine months of 2026 (from $5.2 million in 2025).
• Net cash used in operating activities was approximately $10.4 million for the nine months ended September 30, 2026.
• As of September 30, 2026, the Company held approximately $26.6 million in cash and cash equivalents and $4.0 million in short-term investments (certificates of deposit).
• Total assets increased to $31.2 million as of September 30, 2026, from $9.3 million as of December 31, 2025.
• Total liabilities were $20.9 million as of September 30, 2026, primarily driven by $20.5 million in proceeds received pending share issuance from a private placement.
• Stockholders' equity increased to $10.3 million as of September 30, 2026, from $3.2 million as of December 31, 2025.

Guidance and Future Outlook:

• Management intends to use net proceeds from the September 2026 private placement for working capital, research and development, and general corporate purposes.
• The Company plans to explore early-stage research and preclinical evaluation of a potential neurotechnology and neural-network-based device for sleep-related conditions, with a view toward a potential future FDA submission.
• Management believes current resources provide sufficient liquidity to fund anticipated operating expenses, capital expenditure requirements, and planned R&D activities.
• The Company is evaluating the Decoy platform and existing therapeutic assets for potential licensing, partnership, and other strategic opportunities.
• Future activities depend on scientific validation, strategic fit, market opportunities, available resources, and regulatory considerations.

Business Segments and Product Lines:

• The Company is a biotechnology firm dedicated to immunotherapy research using its patented Decoy technology (attenuated and killed, non-pathogenic Gram-negative bacteria).
• Clinical costs related to the Decoy20 Phase 1 study were lower in the current period compared to 2025.
• The Company is evaluating complementary research initiatives, specifically a neurotechnology device for sleep-related conditions.
• Headcount and base salary reductions contributed to lower payroll and related expenses in R&D and G&A.
• A $0.5 million termination fee was incurred in connection with the termination of the ATM Agreement during the first nine months of 2026.

Market and Competitive Landscape:

• The Company is investigating novel approaches to address unmet needs in sleep-related health through its potential neurotechnology device.
• The Company seeks to understand relationships among sleep, physical recovery, neurological function, and immune status to support future immunotherapy evaluation and biomarker research.

Risks and Challenges:

• The Company faces risks associated with its limited operating history, history of losses, and the need to raise additional capital.
• There is a risk of dilution from future financings.
• The Company has no active clinical development programs currently and has discontinued/wound down Decoy20 clinical activities.
• Risks include the possibility that research initiatives may not demonstrate scientific merit or obtain regulatory approval.
• Potential risks include reliance on third parties, competition, protection of proprietary technology, cybersecurity deficiencies, and Nasdaq continued-listing risks.

Management Commentary and Tone:

• CEO Junyi Dai stated the strategic objective is to position Indaptus for its next phase of growth by pursuing innovative opportunities with significant long-term potential.
• Management expressed excitement about the potential of the neurotechnology device for sleep-related conditions.
• The tone reflects a disciplined approach to capital allocation and a focus on creating long-term shareholder value.
• Management highlighted the successful completion of the $24.0 million private placement as a foundation for advancing their vision.

Other Key Points:

• On September 8, 2026, the Company entered a private placement for 20,338,974 shares of common stock with aggregate gross proceeds of approximately $24.0 million.
• The private placement transaction closed on October 16, 2026; approximately $20.5 million was received by September 30, 2026, and the remaining $3.5 million was received in October.
• The Company executed a one-for-28 reverse stock split in June 2025, with share and per-share amounts retroactively adjusted.
• As of September 30, 2026, the Company had 133,242,324 shares issued and outstanding, compared to 2,167,324 shares as of December 31, 2025.
• Preferred stock was converted, with no preferred shares issued or outstanding as of September 30, 2026, compared to 1,000,000 shares as of December 31, 2025.
• The Company recorded $12.0 million in proceeds from the issuance of shares of common stock and warrants and $20.5 million in proceeds from an advance related to future financing in the nine months ended September 30, 2026.