Company: INMB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001213900-25-073077
Chunk: 9

Company: Inmune Bio, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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the lowest level of input that is significant to the fair value measurements. The Company reviews the fair value hierarchy classification
on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain assets
or liabilities within the fair value hierarchy. The Company did not have any transfers of assets and liabilities 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 tax receivable, prepaid expenses, and accounts
payable and accrued liabilities approximate the related fair values due to the short-term maturities of these instruments. 

7

Cash and Cash Equivalents

The Company
considers all short-term, highly liquid investments with an original maturity at the date of purchase of three months or less to be cash
equivalents. The Company maintains cash balances that may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation
limits. The Company maintains its cash deposits with major financial institutions.

Research
and Development Tax Incentive Receivable

The Company, through its wholly owned subsidiary
in Australia (“AUS”), 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 incentives are reflected
as a reduction of research and development expense. The Australian research and development tax incentive is recognized when there is
reasonable assurance that the incentive will be received, the relevant expenditure has been incurred and the amount of the consideration
can be reliably measured. At each period end, management estimates the reimbursement available to the Company based on available information
at the time.

The Company, through its wholly owned subsidiary
in the United Kingdom (“UK”), participates in the research and development program provided by the United Kingdom tax relief
program, such that a percentage of our qualifying research and development expenditures are reimbursed by the United Kingdom government,
and such incentives are reflected as a reduction of research and development expense. The United Kingdom research and development tax
incentive is recognized when there is reasonable assurance that the incentive will be received, the relevant expenditure has been incurred
and the amount of the consideration can be reliably measured. At each period end, management estimates the reimbursement available to
the Company based on available information at the time.

Equipment

Equipment is recorded at cost and depreciated
using the straight-line method over the estimated useful lives of the assets and consist of scientific equipment