Company: INMB
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003354
Chunk: 511

Company: Inmune Bio, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 511
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 between the levels of
the fair value measurement hierarchy during the years presented.

The carrying amounts of financial instruments
such as cash and cash equivalents, research and development tax credit receivable, other receivable, prepaid expenses, and accounts payable
and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments. 

Risks and Uncertainties

The Company
is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development
by competitors of new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government
regulations and the need to obtain additional financing to fund operations. Product candidates currently under development will require
significant additional research and development efforts, including extensive preclinical studies, clinical trials and regulatory approval
prior to commercialization. These efforts require significant amounts of additional resources, adequate personnel, infrastructure and
extensive compliance and reporting.

The Company’s
product candidates are still in development and, to date, none of the Company’s product candidates have been approved for sale.

There can
be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s
intellectual property will be obtained or maintained, that any products developed will obtain necessary government regulatory approval
or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it
is uncertain when, if ever, the Company will generate any revenue from any of its products. The Company operates in an environment of
rapid change in technology and substantial competition from other pharmaceutical and biotechnology companies.

The Company
relies and expects to continue to rely on a small number of vendors to manufacture supplies and materials for its use in the clinical
trial programs. These programs could be adversely affected by a significant interruption in these manufacturing services.

Cash and Cash Equivalents

The Company considers all highly liquid instruments
purchased with an original maturity of three months or less to be cash equivalents. The Company holds cash in banks in excess of Federal
Deposit Insurance Corporation insurance limits. However, the Company believes risk of loss is minimal as the cash is held by large, highly-rated
financial institutions. 

F-8

Research and Development Tax Incentive Receivable

The Company, through its wholly-owned subsidiary
in Australia, participates in the Australian research and development tax incentive program, such that a percentage of our qualifying
research and development expenditures are reimbursed by the Australian government, and such