Company: INMB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001213900-25-073077
Chunk: 8

Company: Inmune Bio, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 8
---
, included in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 27, 2025.

6

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 the Company’s product candidates have been approved for sale.

There can be no assurance that the Company’s
research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be
obtained or maintained, that any products developed will obtain necessary government regulatory approval or that any approved products
will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the
Company will generate any revenue from any of its products. The Company operates in an environment of rapid change in technology and substantial
competition from other pharmaceutical and biotechnology companies.

The Company relies and expects to continue to
rely on a small number of vendors to manufacture supplies and materials for its use in the clinical trial programs. These programs could
be adversely affected by a significant interruption in these manufacturing services.

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