Company: INMB
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003354
Chunk: 372

Company: Inmune Bio, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1C
Chunk 372
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t 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
are based on inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs are
used when little or no market data is available.

Assets and liabilities are classified based on
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 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