Company: INMB
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001213900-25-104141
Chunk: 43

Company: Inmune Bio, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 43
---
.8 million during the nine months ended September 30, 2025 and 2024, respectively. The change in research and development
expenses during the nine months ending September 30, 2025 compared to the nine months ending September 30, 2024 is mainly due to
the Company incurring $9.5 million less Alzheimer’s clinical program expenses due to the trial being completed in 2025, partially
offset by the Company incurring $1.3 million of additional compensation expense primarily in connection with the termination of employees
and recording $1.0 million less accrued rebate during the nine months ended September 30, 2025.

General and Administrative

General and administrative expenses were approximately $7.1 million
and $7.4 million during the nine months ended September 30, 2025 and 2024, respectively. The decrease in general and administrative expenses
during the nine months ended September 30, 2025 was mainly due to the Company incurring $0.3 million lower investor relations expense
and $0.1 million lower professional fees, partially offset by $0.3 million higher stock-based compensation.

Impairment of acquired in-process research
and development intangible assets

During the nine months ended
September 30, 2025, the Company released the Phase 2 clinical trial results for our Alzheimer’s drug candidate, XPro, which failed
to meet the primary endpoint, though a subgroup showed potential benefits. Due to insufficient resources to fund further trials, the Company
has halted immediate plans to develop XPro for Alzheimer’s or other indications and are instead seeking a partner to continue these
studies. As part of preparing its interim unaudited condensed consolidated financial statements, the Company determined that the intangible
asset’s fair value was likely below its carrying value. Following a quantitative impairment assessment, the Company estimated the
asset’s fair value at $0, resulting in a recorded impairment of $16.5 million during the second quarter of 2025.

31

Other Income, net

During the nine months ended
September 30, 2025, the Company recorded $1.2 million of other income, of which $0.6 million was due to the Company earning interest income
on its cash investments and $0.6 million was gain on forgiveness of payables. During the nine months ended September 30, 2024, the Company
earned $0.3 million of other income consisting of interest income partially offset by