Company: INMB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001213900-25-041072
Chunk: 9

Company: Inmune Bio, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 per share excludes all potential
common shares if their effect is anti-dilutive. For all periods presented, there is no difference in the number of shares used to calculate
basic and diluted shares outstanding due to the Company’s net loss position.

At March 31, 2025 and 2024, the Company had potentially
issuable shares as follows:

    March 31, 

    2025  
    2024 
  
    Stock options 
     7,303,307  
     5,496,000 
  
    Warrants 
     3,944,138  
     45,386 
  
    Total 
     11,247,445  
     5,541,386 

Revenue Recognition

The Company recognizes revenue when the customer
obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange
for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC Topic 606: (1) identify
contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate
the transaction price to the performance obligations in the contract; and (5) recognize revenues when (or as) the Company satisfies the
performance obligations. The Company records the expenses related to revenue in research and development expense, in the periods such
expenses were incurred.

The Company records deferred revenues when cash
payments are received or due in advance of performance, including amounts which are refundable.

Stock-Based Compensation

The Company
utilizes the Black-Scholes option pricing model to estimate the fair value of stock option awards at the date of grant, which requires
the input of highly subjective assumptions, including expected volatility and expected life. Changes in these inputs and assumptions can
materially affect the measure of estimated fair value of our share-based compensation. These assumptions are subjective and generally
require significant analysis and judgment to develop. When estimating fair value, some of the assumptions will be based on, or determined
from, external data and other assumptions may be derived from our historical experience with stock-based payment arrangements. The appropriate
weight to place on historical experience is a matter of judgment, based on relevant facts and circumstances. The Company accounts for
forfeitures of stock options as they occur.

Research and Development

Research and development (“R&D”)
costs are expensed as incurred. Research and development credits