Company: INMB
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003354
Chunk: 121

Company: Inmune Bio, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 121
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 with generally accepted accounting principles applicable to a going concern, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of business.

The Company has incurred significant losses and
negative cash flows from operations since inception and expects to incur additional losses until such time that it can generate significant
revenue from the commercialization of its product candidates. The Company had net losses of approximately $42.1 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