Company: INMB
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003354
Chunk: 833

Company: Inmune Bio, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 7A
Chunk 833
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.1 million and $30.0 million
and negative cash flows from operating activities of approximately $33.4 million and $12.0 million for the years ended December 31, 2024
and 2023, respectively, and an accumulated deficit of approximately $163.1 million and $121.0 million as of December 31, 2024 and 2023,
respectively. Given the Company’s projected operating requirements and its existing cash and cash equivalents, the Company is projecting
insufficient liquidity to sustain its operations through one year following the date that the financial statements are issued. These conditions
and events raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the
issuance of these financial statements.

In response to these conditions, management is
currently evaluating different strategies to obtain the required funding of future operations. Financing strategies may include, but are
not limited to, the public or private sale of equity, debt financings or funds from other capital sources, such as government funding,
collaborations, strategic alliances, divestment of non-core assets, or licensing arrangements with third parties. There can be no assurances
that the Company will be able to secure additional financing, or if available, that it will be sufficient to meet its needs or on favorable
terms. Because management’s plans have not yet been finalized and are not within the Company’s control, the implementation
of such plans cannot be considered probable. As a result, the Company has concluded that management’s plans do not alleviate substantial
doubt about the Company’s ability to continue as a going concern.

The consolidated financial statements do not include
any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities
that might result from the outcome of this uncertainty.

F-7

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Preparing financial statements in conformity with
US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses.
Actual results and outcomes may differ from management’s estimates and assumptions.

Fair Value of Financial Instruments

The Company measures certain assets and liabilities
in accordance with authoritative guidance which requires fair value measurements to be classified and disclosed in one of the following
three categories:

Level 1: Quoted prices (unadjusted)
in active markets that are accessible at the measurement date for assets or liabilities.

Level 2: Observable prices that