Company: INMB
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001213900-25-104141
Chunk: 15

Company: Inmune Bio, Inc.
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 credit receivable of $1,704,000 and $1,181,000,
respectively, for R&D expenses incurred in Australia.

10

Xencor, Inc. License Agreement

On October
3, 2017, the Company entered into a license agreement (“Xencor License Agreement”) with Xencor, Inc. (“Xencor”),
which discovered and developed a proprietary biological molecule that inhibits soluble tumor necrosis factor. On June 10, 2021, the Company
and Xencor entered into a First Amendment to License Agreement pursuant to which, among other things, Section 3.2 of the Xencor License
Agreement was amended to change the due diligence milestones. Pursuant to the Xencor License Agreement, Xencor granted the Company an
exclusive worldwide, royalty-bearing license in licensed patent rights, licensed know-how and licensed materials (as defined in the license
agreement) to make, develop, use, sell and import any pharmaceutical product that comprises, contains, or incorporates Xencor’s
proprietary protein known as “XPro” that inhibits soluble tumor necrosis factor (or all modifications, formulations and variants
of the licensed protein that specifically bind soluble tumor necrosis factor) alone or in combination with one or more active ingredients,
in any dosage or formulation (“Licensed Products”). The Company believes the protein has numerous medical applications. Such
additional alternative applications of the technology are available under the Xencor License Agreement. 

The Company
also agreed to pay Xencor a 5% royalty on Net Sales of all Licensed Products in a given calendar year, which are payable on a country-by-
country and licensed product by licensed product basis until the date that is the later of (a) the expiration of the last to expire valid
claim covering such Licensed Product in such country or (b) ten years following the first sale to a third party of the licensed product
in such country.

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