Company: INMB
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001213900-25-104141
Chunk: 11

Company: Inmune Bio, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 of scientific equipment with a 5 year life. Repairs
and maintenance costs are charged to expense as incurred.

Intangible Assets

The Company capitalizes costs incurred in connection
with in-process research and development purchased from others if the asset has alternative uses and such uses are not restricted under
applicable license agreements; patent applications (principally legal fees), patent purchases, and trademarks related to its cell line
as intangible assets. Acquired in-process research and development costs that do not have alternative uses are expensed as incurred. When
the assets are determined to have a finite life (upon completion of the development of the in-process research and development for its
DN-TNF platform), the useful life will be determined and the in-process research and development intangible assets will be amortized.

During the fourth quarter and if business factors
indicate more frequently, the Company performs an assessment of the qualitative factors affecting the fair value of our in-process research
and development. If the qualitative assessment suggests that impairment is more likely than not, a quantitative analysis is performed.
The quantitative analysis involves a comparison of the fair value of the in-process research and development with the carrying amount.
If the carrying amount of the in-process research and development exceeds its fair value, an impairment loss is recognized in an amount
equal to that excess.

During the second quarter of 2025, the Company
released the Phase 2 clinical trial results for our Alzheimer’s drug candidate, XPro, which failed to meet the primary endpoint,
though a subgroup showed potential benefits. Due to insufficient resources to fund further trials, the Company has halted immediate plans
to develop XPro for Alzheimer’s or other indications and are instead seeking a partner to continue these studies. As part of preparing
its interim unaudited condensed consolidated financial statements, the Company determined that the intangible asset’s fair value
was likely below its carrying value. Following a quantitative impairment assessment, the Company estimated the asset’s fair value
at $0, resulting in a recorded impairment of $16,514,000 which was recorded during the second quarter of 2025.

8

Basic and Diluted Loss per Share 

Basic loss per share is computed by dividing net
loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per
share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential
common shares if their effect is anti-dilutive. For all periods presented, there