Company: INMB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001213900-25-041072
Chunk: 33

Company: Inmune Bio, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 and development expenses during the three months ending March 31, 2025 compared to
the three months ending March 31, 2024 is largely due to incurring $1.5 million less expenses related to our Alzheimer’s clinical
program due to the Company nearing the completion of the Phase 2 clinical trial, partially offset by $0.3 million of higher employee compensation
costs and a decrease of $0.2 million of accrued rebate.

Other Expense, net

During the three months ended
March 31, 2025, the Company recorded $0.2 million of other income due to the Company earning interest income on its cash investments.
The increase in other income from the prior year is due to the Company paying off its debt in 2024.

24

Liquidity and Capital Resources

Liquidity
is the ability of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate
on an ongoing basis.

We incurred a net loss of
$9.7 million and $11.0 million for the three months ended March 31, 2025 and 2024, respectively. Net cash used in operating activities
was $6,824,000 and $7,476,000 for the three months ended March 31, 2025 and 2024, respectively. Since inception, we have funded our operations
primarily with proceeds from the sales of our common stock. As of March 31, 2025, we had cash and cash equivalents of $19,336,000. We
anticipate that operating losses and net cash used in operating activities will increase over the next few years as we advance our products
under development.

During the period from April 1, 2025 through May 8, 2024, the Company sold 279,966 shares of common stock at an average price of $7.62
for gross proceeds of approximately $2.1 million under the ATM offering.

Our
primary uses of capital are, and we expect will continue to be, third-party clinical and preclinical research and development services,
costs incurred to manufacture our drugs under development, compensation and related expenses, legal, patent and other regulatory expenses
and general overhead costs. We believe our use of CROs provides us with flexibility in managing our spending.

The
Company incurs significant research and development expenses in Australia and the United Kingdom. Fluctuations in the rate of exchange
between the United States dollar