Company: INMB
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003354
Chunk: 204

Company: Inmune Bio, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 204
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 Sarbanes-Oxley Act, and failure to achieve and maintain effective internal control
over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act, could have a material adverse effect on our business
and share price.

Our management is currently required to report on the effectiveness of our internal control over financial
reporting. However, as a smaller reporting company and a non-accelerated filer, our independent registered public accounting firm will
not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 for as long as
we are not deemed an “accelerated filer” or “large accelerated filer.” The rules governing the standards that
must be met for our management to assess our internal control over financial reporting are complex and require significant documentation,
testing and possible remediation.

In connection with
the implementation of the necessary procedures and practices related to internal control over financial reporting, we may identify deficiencies
or material weaknesses that we may not be able to remediate in time to meet the deadline imposed by the Sarbanes-Oxley Act for compliance
with the requirements of Section 404. In addition, we may encounter problems or delays in completing the implementation of any requested
improvements and receiving a favorable attestation in connection with the attestation provided by our independent registered public accounting
firm. Failure to achieve and maintain an effective internal control environment could have a material adverse effect on our business,
financial condition and results of operations and could limit our ability to report our financial results accurately and in a timely manner.

Anti-takeover provisions in our stockholder
rights plan could make a third-party acquisition of us difficult.

We have a stockholder rights
plan that may have the effect of discouraging unsolicited takeover proposals. Specifically, the rights issued under the stockholder rights
plan could cause significant dilution to a person or group that attempts to acquire us on terms not approved in advance by our board of
directors. The rights plan is not intended to prevent a takeover, and we believe it will enable all our stockholders to realize the full
potential value of their investment in the Company and protect the Company and its stockholders from efforts to obtain control of the
Company that are inconsistent with the best interests of the Company and its stockholders. The rights under the plan will expire on December
30, 2025, subject to a possible earlier expiration to the extent provided in the stockholder rights plan, unless extended.

Sales of our