Company: INMB
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003354
Chunk: 582

Company: Inmune Bio, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 4
Chunk 582
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utive. For all periods presented, there is no difference in the number of shares used to calculate
basic and diluted shares outstanding due to the Company’s net loss position.

At December 31, 2024, the Company had 7,203,307 potentially issuable shares
of common stock upon the exercise of stock options and 3,944,238 potentially issuable shares of common stock upon the exercise of warrants.

At December 31, 2023, the Company had 5,496,000
potentially issuable shares of common stock upon the exercise of stock options and 45,386 potentially issuable shares of common stock
upon the exercise of warrants.

Revenue Recognition

The Company recognizes revenue when the customer
obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange
for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC Topic 606: (1) identify
contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate
the transaction price to the performance obligations in the contract; and (5) recognize revenues when (or as) the Company satisfies the
performance obligations. The Company records the expenses related to revenue in research and development expense, in the periods such
expenses were incurred.

F-9

The Company records deferred revenues when cash
payments are received or due in advance of performance, including amounts which are refundable.

The Company’s 2024 and 2023 revenue was
from the sale of mesenchymal stromal cells to one customer in the United Kingdom and was recognized when the MSC’s were delivered
to the customer. 

Stock-Based Compensation

The Company utilizes the Black-Scholes option
pricing model to estimate the fair value of stock option awards at the date of grant, which requires the input of highly subjective assumptions,
including expected volatility and expected life. Changes in these inputs and assumptions can materially affect the measure of estimated
fair value of our share-based compensation. These assumptions are subjective and generally require significant analysis and judgment to
develop. When estimating fair value, some of the assumptions will be based on, or determined from, external data and other assumptions
may be derived from our historical experience with stock-based payment arrangements. The appropriate weight to place on historical experience
is a matter of judgment, based on relevant facts and circumstances. The Company accounts for forfeitures of