Inmune Bio nets about $4M; going-concern doubt remains
Management identified insufficient projected liquidity for the year after issuance, while an October financing generated approximately $4.0 million in net proceeds.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Inmune Bio, Inc. (INMB) reported a nine-month net loss of $11.4 million, versus $40.7 million a year earlier, and operating cash use of $10.0 million versus $19.6 million. Lower research and development expense reflected completion of the Alzheimer’s Phase 2 trial and higher rebates, partly offset by increased CORDStrom/INKmune costs; the prior-year period included a $16.5 million impairment. Cash was $16.3 million at September 30, 2026.
Management said projected liquidity is insufficient to sustain operations through one year following issuance of the financial statements, and its plans do not alleviate substantial doubt about the company’s ability to continue as a going concern. On October 29, 2026, it completed a financing, selling 3,000,000 common shares at $1.50 each and agreeing to issue warrants for 3,000,000 shares; net proceeds were approximately $4.0 million.
The company has ceased INKmune development. XPro’s Phase 2 Alzheimer’s trial did not meet its primary endpoint, although a subgroup showed potential benefits; immediate development is halted while it seeks a partner. It intends to file a UK MAA for CORDStrom in February 2027 and plans a U.S. BLA for mid-2027; regulatory timing and outcome remain uncertain.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointNine-month net loss fell to $11.4 million from $40.7 million.
- Moderate pointOperating cash use declined to $10.0 million from $19.6 million.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.Substantial doubt remains; projected liquidity is insufficient through one year after issuance.
Filing Explained
Warrant shares remain unissued unless exercised, and CORDStrom has a contingent payment of up to six million pounds upon the first listed marketing approval.
The October 29 financing is complete: INmune Bio agreed to issue
If exercised, those additional shares would increase the total share count and reduce existing holders’ percentage ownership, absent offsetting changes.
The CORDStrom license also provides for a payment of up to
The separate at-the-market agreement permits gradual share sales up to
Key Figures
Key Terms
going concern financial
at-the-market sales agreement financial
Biologics License Application regulatory
warrant inducement agreement financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did INMB lose and use in operating cash during the first nine months of 2026?
What were the terms of INMB’s October 2026 financing?
Why did INMB’s research and development expense change in the first nine months of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
FOR THE QUARTERLY PERIOD ENDED
OR
Commission File Number:
| (Exact name of registrant as specified in its charter) |
| (State of incorporation) | (I.R.S. Employer Identification No.) |
(Address of principal executive office) (Zip code)
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period than the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of November 5, 2026, there were
INMUNE BIO INC.
FORM 10-Q
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026
INDEX
| PART I – FINANCIAL INFORMATION | 1 | ||
| Item 1. | Financial Statements | 1 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 12 | |
| Item 3. | Quantitative and Qualitative Disclosure About Market Risk | 20 | |
| Item 4. | Controls and Procedures | 20 | |
| PART II – OTHER INFORMATION | 21 | ||
| Item 1. | Legal Proceedings | 21 | |
| Item 1A. | Risk Factors | 21 | |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 21 | |
| Item 3. | Defaults Upon Senior Securities | 21 | |
| Item 4. | Mine Safety Disclosures | 21 | |
| Item 5. | Other Information | 21 | |
| Item 6. | Exhibits | 21 | |
| Signatures | 22 | ||
i
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INMUNE BIO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
| September 30, 2026 |
December 31, 2025 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Research and development tax credit receivable | ||||||||
| Other tax receivable | ||||||||
| Prepaid expenses and other current assets | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| Equipment, net | ||||||||
| Operating lease – right of use asset | ||||||||
| Other assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued liabilities | $ | $ | ||||||
| Accounts payable and accrued liabilities – related party | ||||||||
| Operating lease, current liabilities | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| Long-term operating lease liabilities | ||||||||
| TOTAL LIABILITIES | ||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock, $ | - | - | ||||||
| Common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1
INMUNE BIO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUE | $ | - | $ | - | $ | - | $ | |||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Research and development | ||||||||||||||||
| Impairment of acquired in-process research and development intangible assets | - | - | - | |||||||||||||
| Total operating expenses | ||||||||||||||||
| LOSS FROM OPERATIONS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| OTHER INCOME, NET | ||||||||||||||||
| NET LOSS | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per common share – basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average common shares outstanding – basic and diluted | ||||||||||||||||
| COMPREHENSIVE LOSS | ||||||||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Other comprehensive loss – foreign currency translation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2
INMUNE BIO INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026
(In thousands, except share amounts)
(Unaudited)
| Accumulated | ||||||||||||||||||||||||||||
| Additional | Other | Total | ||||||||||||||||||||||||||
| Common Stock | Paid-In | Subscription | Comprehensive | Accumulated | Stockholders’ | |||||||||||||||||||||||
| Shares | Amount | Capital | Receivable | Gain (Loss) | Deficit | Equity | ||||||||||||||||||||||
| Balance as of December 31, 2025 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Gain on foreign currency translation | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of March 31, 2026 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Common stock issued for cash | - | - | - | - | ||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Exercise of warrants for cash | ( | ) | - | - | ||||||||||||||||||||||||
| Exercise of stock options for cash | - | - | - | - | ||||||||||||||||||||||||
| Loss on foreign currency translation | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of June 30, 2026 | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
| Common stock issued for cash | - | - | - | - | ||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Collection of warrant subscription receivable | - | - | - | - | - | |||||||||||||||||||||||
| Exercise of stock options for cash | - | - | - | - | ||||||||||||||||||||||||
| Loss on foreign currency translation | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of September 30, 2026 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3
INMUNE BIO INC.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025
(In thousands, except share amounts)
(Unaudited)
| Accumulated | ||||||||||||||||||||||||
| Additional | Other | Total | ||||||||||||||||||||||
| Common Stock | Paid-In | Comprehensive | Accumulated | Stockholders’ | ||||||||||||||||||||
| Shares | Amount | Capital | Loss | Deficit | Equity | |||||||||||||||||||
| Balance as of December 31, 2024 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
| Stock-based compensation | - | - | - | - | ||||||||||||||||||||
| Sale of common stock for cash | - | - | ||||||||||||||||||||||
| Exercise of warrants for cash | - | - | - | |||||||||||||||||||||
| Loss on foreign currency translation | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||
| Net loss | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||
| Balance as of March 31, 2025 | ( | ) | ( | ) | ||||||||||||||||||||
| Stock-based compensation | - | - | - | - | ||||||||||||||||||||
| Sale of common stock for cash | - | - | ||||||||||||||||||||||
| Loss on foreign currency translation | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||
| Net loss | - | - | ( | ) | ( | ) | ||||||||||||||||||
| Balance as of June 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||
| Stock-based compensation | - | - | - | - | ||||||||||||||||||||
| Loss on foreign currency translation | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||
| Net loss | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||
| Balance as of September 30, 2025 | $ | $ | $ | ( | ) | $ | ( | ) | $ | |||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4
INMUNE BIO INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| For the Nine Months Ended September 30, |
||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | ||||||||
| Gain on settlement of accounts payable | ( | ) | ( | ) | ||||
| Depreciation expense | ||||||||
| Impairment of acquired research and development intangible assets | - | |||||||
| Changes in operating assets and liabilities: | ||||||||
| Research and development tax credit receivable | ( | ) | ||||||
| Other tax receivable | ( | ) | ( | ) | ||||
| Prepaid expenses | ( | ) | ( | ) | ||||
| Other assets | ( | ) | ||||||
| Accounts payable and accrued liabilities | ( | ) | ||||||
| Deferred liabilities | - | ( | ) | |||||
| Operating lease liabilities | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of equipment | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Sale of common stock for cash | ||||||||
| Exercise of warrants for cash | ||||||||
| Exercise of stock options for cash | - | |||||||
| Net cash provided by financing activities | ||||||||
| Impact on cash from foreign currency translation | ( | ) | ( | ) | ||||
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | ( | ) | ||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ||||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||||||||
| Cash paid for income taxes | $ | - | $ | - | ||||
| Cash paid for interest | $ | - | $ | - | ||||
| SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Right of use assets obtained in exchange for lease obligations | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5
INMUNE BIO INC.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Description of Business
INmune Bio Inc. (the “Company” or “INmune Bio”) is a clinical stage biotechnology pharmaceutical company focused on developing and commercializing its product candidates to treat diseases where inflammation and immunology cause a dysfunctional immune system contributing to disease. INmune Bio has three product platforms. The CORDStrom product platform is a pooled, human umbilical cord mesenchymal stem cell product currently being developed to treat recessive dystrophic epidermolysis bullosa (“RDEB”). The DN-TNF product platform utilizes dominant-negative technology to selectively neutralize soluble TNF, a key driver of innate immune dysfunction and mechanistic target of many diseases and was used for its Alzheimer’s clinical trial (“XPro”). The Natural Killer Cell Priming Platform includes INKmune aimed at priming the patient’s NK cells to eliminate minimal residual disease in patients with cancer. The Company has ceased development activities related to INKmune.
Basis of Presentation
The accompanying financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of INmune Bio Inc. and its subsidiaries. Intercompany transactions and balances have been eliminated.
In the opinion of management, the interim financial information includes all normal recurring adjustments necessary for a fair statement of the results for the interim periods. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026.
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.
Significant Accounting Policies
The Company’s significant accounting policies have not changed during the nine months ended September 30, 2026 from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.
Going concern
These unaudited condensed consolidated financial statements have been prepared in accordance 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. During the nine months ended September 30, 2026, the Company incurred a net loss of $
6
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 unaudited condensed 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.
Basic and Diluted Loss per Share
Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Diluted loss per share excludes all potential common shares if their effect is anti-dilutive. 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 September 30, 2026, the Company had
At December 31, 2025, the Company had
Segment Information
The Company has one primary business activity and operates in one reportable segment.
Recently issued accounting pronouncements not yet adopted
In November 2024, the FASB issued ASU 2024-03 related to the disaggregation of certain income statement expenses. The amendments in this update require public entities to disclose incremental information related to purchases of inventory, team member compensation and depreciation, which will provide investors the ability to better understand entity expenses and make their own judgements about entity performance. The amendments in this update are effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027. The standard permits adoption on either a prospective or retrospective basis. The Company currently plans to adopt this guidance on a prospective basis for the year ending December 31, 2027. Aside from these disclosure changes, we do not expect the amendments to have a material effect on our financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The standard permits either prospective or retrospective application. The Company currently plans to adopt ASU 2025-11 on a prospective basis for the year ending December 31, 2028. The Company is currently evaluating the impact of adopting ASU 2025-11 on our financial statements.
7
NOTE 2 – RESEARCH AND DEVELOPMENT ACTIVITY
Under Australian tax law, the Company may qualify for refundable R&D tax credits for eligible research and development expenditures, subject to certain requirements. The Company’s Australian subsidiary has historically submitted claims for these credits. At September 30, 2026 and December 31, 2025, the Company recorded Australian R&D tax credit receivables of $
According to UK tax law, the Company is allowed an R&D tax credit that reduces a company’s tax bill in the UK for expenses incurred in R&D subject to certain requirements. At September 30, 2026 and December 31, 2025, the Company had a research and development tax credit receivable of $
CORDStrom License Agreement
During February 2025, the Company and Great Ormond Street Hospital for Children NHS Foundation Trust (“GOSH”) entered into a license agreement for the exclusive commercial use to clinical trial data associated with a GOSH study investigating the potential of CORDStrom to treat RDEB in pediatric patients (the “MissionEB study”). The Company owns the intellectual property covering CORDStrom, the investigational medicinal product used in the MissionEB study. In addition, the Company owns intellectual property and maintains trade secret protections covering the manufacturing of CORDStrom. With this license to the clinical trial data, the Company intends to prepare applications seeking regulatory approval of CORDStrom for treatment of pediatric RDEB from the FDA, EMA, and MHRA. Terms of the license agreement include a milestone payment of up to £
Under the license agreement, the Company was previously obligated to provide CORDStrom for use in the MissionEB clinical study at no cost. During February 2026, the MissionEB study was formally closed, and the Company’s obligation to supply CORDStrom in connection with that study has terminated in accordance with the terms of the license agreement. As a result, the Company has no remaining contractual product supply obligations related to the MissionEB study under the license agreement.
Xencor, Inc. License Agreement
During October 2017, the Company entered into a license agreement with Xencor, Inc., as amended. Under the agreement, the Company obtained an exclusive, worldwide, royalty-bearing license to develop and commercialize products incorporating Xencor’s XPro protein technology targeting soluble tumor necrosis factor.
The Company is obligated to pay a
INKmune License Agreement
The Company is party to a license agreement with Immune Ventures, LLC (“Immune Ventures”), a related party, under which it obtained exclusive worldwide rights to certain intellectual property. The agreement provides for milestone payments upon the achievement of specified development and regulatory events and a
As of September 30, 2026 and December 31, 2025, the Company recorded a $
8
NOTE 3 – FAIR VALUE MEASUREMENTS
The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:
| (in thousands) | Total | Quoted Price in Active Market (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
| September 30, 2026: | ||||||||||||||||
| Cash equivalents | ||||||||||||||||
| Money market funds | $ | $ | $ | - | $ | - | ||||||||||
| Total cash equivalents | $ | $ | $ | - | $ | - | ||||||||||
| (in thousands) | Total | Quoted Price in Active Market (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
| December 31, 2025: | ||||||||||||||||
| Cash equivalents | ||||||||||||||||
| Money market funds | $ | $ | $ | - | $ | - | ||||||||||
| Total cash equivalents | $ | $ | $ | - | $ | - | ||||||||||
NOTE 4 – EQUIPMENT, NET
Equipment, net consisted of the following (in thousands):
| September 30, 2026 | December 31, 2025 | |||||||
| Lab equipment | $ | $ | ||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ||||
| Total | $ | $ | ||||||
Depreciation expense was approximately $
NOTE 5 – LEASE
As of September 30, 2026, the maturities of our lease liabilities are as follows:
| (in thousands, except years) | ||||
| 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Total lease payments | ||||
| Less: imputed interest | ( | ) | ||
| Present value of future lease payments | ||||
| Less: operating lease, current liabilities | ( | ) | ||
| Long-term operating lease liabilities | $ | |||
The weighted-average lease term as of September 30, 2026 and December 31, 2025 was
During the three and nine months ended September 30, 2026, the Company recognized $
9
NOTE 6 – STOCKHOLDERS’ EQUITY
Common Stock – At the Market Offering
During August 2024, the Company entered into an amended and restated at-the-market sales agreement with RBC Capital Markets LLC and BTIG (together, the “Sales Agents”) relating to the offer and sale of shares of our common stock. The Company was required to pay the Sales Agents a commission of
On December 19, 2025, the Company entered into a sales Agreement with A.G.P./Alliance Global Partners (“AGP”), as sales agent, pursuant to which the Company may offer and sell, from time to time, up to $
Registered Direct Offerings
During June 2025, the Company entered into securities purchase agreements with investors whereby the Company sold
Stock options
On June 16, 2026, stockholders approved the Third Amended and Restated 2021 Stock Incentive Plan, increasing authorized shares from
During the nine months ended September 30, 2026, the Company granted a consultant and certain directors options to purchase
The following table summarizes stock option activity during the nine months ended September 30, 2026:
| (in thousands, except share and per share amounts) | Number of Shares | Weighted- average Exercise Price | Weighted- average Remaining Contractual Term (years) | Aggregate Intrinsic Value | ||||||||||||
| Outstanding at January 1, 2026 | $ | $ | ||||||||||||||
| Options granted | $ | - | - | |||||||||||||
| Options exercised | ( | ) | $ | - | - | |||||||||||
| Options cancelled | ( | ) | $ | - | - | |||||||||||
| Outstanding at September 30, 2026 | $ | $ | ||||||||||||||
| Exercisable at September 30, 2026 | $ | $ | ||||||||||||||
During the three and nine months ended September 30, 2026, the Company recognized stock-based compensation expense of approximately $
Warrants
SVB Warrants
The Company issued warrants to the Company’s lenders upon obtaining a loan in June 2021. The warrants expire in June 2031 and have an exercise price of $
10
April 2024 Warrants
On June 30, 2026, the Company entered into a warrant inducement agreement with certain holders of its April 2024 common stock purchase warrants. Under the agreements, the holders exercised an aggregate of
In consideration for the exercise, the expiration date of the holders’ remaining
September 2024 Warrants
During September 2024, the Company issued
Stock-based Compensation by Class of Expense
The following summarizes the components of stock-based compensation expense in the consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025 respectively:
| (in thousands) | Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||
| Research and development | $ | $ | $ | $ | ||||||||||||
| General and administrative | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
NOTE 7 – COMMITMENTS
Litigation
The Company is subject to claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact in the Company’s consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.
NOTE 8 – SUBSEQUENT EVENTS
Common stock and warrant financing
On October 29, 2026, the Company completed a financing in which it issued and sold, in a registered direct offering,
The warrants have an exercise price of $
In connection with the financing, the Company agreed to file a registration statement on Form S-1 covering the resale of the shares of common stock issuable upon exercise of the warrants.
Stock option exercise
During October 2026, the Company issued
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control. These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.
Description of Business
Overview
INmune Bio is a clinical-stage biotechnology company dedicated to developing and commercializing a pipeline of product candidates designed to reprogram the innate immune system. Our mission is to address a broad range of diseases where chronic inflammation and immune dysfunction are primary drivers of pathology.
Lead Program: CORDStrom™ for RDEB Our primary focus is the treatment of Recessive Dystrophic Epidermolysis Bullosa (“RDEB”) using CORDStrom, our proprietary, pooled, human umbilical cord-derived mesenchymal stromal cell platform. RDEB is a devastating pediatric orphan disease caused by mutations in the COL7A1 gene. This genetic deficiency leads to systemic complications, including highly debilitating skin blistering, chronic non-healing wounds, dysphagia, and failure to thrive. Over time, the chronic inflammatory environment associated with RDEB often progresses to fatal squamous cell carcinoma. RDEB is a systemic disease with no approved systemic treatments. The only approved products to date are topical and do not address the systemic issues of the disease, which is the focus of CORDStrom.
CORDStrom has recently completed a pivotal, blinded, randomized cross-over trial. Based on these data, the Company is transitioning toward regulatory submission and commercialization. We intend to file a Marketing Authorization Application (“MAA”) in the United Kingdom during February 2027, followed by a Biologics License Application (“BLA”) with the U.S. Food and Drug Administration (“FDA”) planned for mid-2027 and then the European Union application.
Neuroinflammation and Oncology Pipelines In addition to our lead rare disease program, the Company has two other clinical-stage platforms:
| ● | XPro1595 (XPro): A next-generation protein therapeutic that targets neuroinflammation by selectively neutralizing soluble TNF. XPro has completed Phase I and Phase II clinical trials for the treatment of Alzheimer’s Disease (“AD”). The Company intends to pursue strategic partnership opportunities to support the further development of XPro in neurodegenerative and/or other indications. The Company does not currently plan to independently advance XPro into later-stage development. |
| ● | INKmune™: A novel natural killer (NK) cell-priming platform designed to harness the patient’s own innate immune system to eliminate cancer cells. The INKmune program is currently nearing the completion of an open-label Phase II trial for the treatment of metastatic castrate-resistant prostate cancer (“mCRPC”). The Company has ceased development activity in the INKmune program. |
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By targeting the innate immune system across these distinct therapeutic areas, INmune Bio aims to deliver disease-modifying treatments for patients with high unmet medical needs.
We continue to incur significant development and other expenses related to our ongoing operations. As a result, we are not and have never been profitable and have incurred losses in each period since our inception, resulting in substantial doubt in our ability to continue as a going concern. We reported a net loss of $11.4 million for the nine months ended September 30, 2026. As of September 30, 2026 and December 31, 2025, we had cash and cash equivalents of $16.3 million and $24.8 million, respectively. We expect to continue to incur significant losses for the foreseeable future, and we expect these losses to increase as we continue our research and development of, and seek regulatory approvals for, our product candidates. The size of our future net losses will depend, in part, on the rate of future growth of our expenses and our ability to generate revenues, if any.
Our recurring net losses and negative cash flows from operations raised substantial doubt regarding our ability to continue as a going concern within one year after the issuance of our unaudited condensed consolidated financial statements for the nine months ended September 30, 2026. Until we can generate sufficient revenue from the commercialization of our product candidates, we expect to finance our operations through the public or private sale of equity, debt financings or other capital sources, such as government funding, collaborations, strategic alliances, divestment of non-core assets, or licensing arrangements with third parties. To date, the Company has relied on equity and debt financing to fund its operations.
Amendment to Anthony Nolan License Agreement
On April 29, 2026, the Company entered into an amended and restated material transfer and license agreement with Anthony Nolan, a UK-based organization, which amends and restates a prior agreement originally entered into in 2017 by the Company’s wholly owned subsidiary. In connection with the amended agreement, the Company became a direct party and agreed to be jointly and severally liable for certain payment obligations thereunder. The amended agreement expands the Company’s collaboration with Anthony Nolan and is intended to secure a long-term supply of umbilical cord tissue to support the development of CORDStrom, which the Company expects will be the initial application of such materials, with potential use in additional product candidates in the future.
Under the amended agreement, the Company has obtained exclusive rights, with the ability to sublicense, to use specified donor materials for research, development and commercialization purposes. The Company is obligated to pay per-sample processing fees and, upon commercialization, royalties on net sales, each subject to certain adjustments and caps, and such fees may be subject to periodic increases tied to inflation indices. The agreement continues until terminated in accordance with its terms or for a period extending beyond the first commercial sale of applicable products.
The Company does not expect the amended agreement to have a material impact on its near-term results of operations or liquidity; however, it may result in future payment obligations and become material in the event of successful development and commercialization of product candidates utilizing such materials. The Company believes this agreement is consistent with its strategy to advance its product candidates through collaborations, strategic relationships and licensing arrangements.
Research and Development
Research and development expense consists of expenses incurred while performing research and development activities to discover and develop our product candidates. This includes conducting preclinical studies and clinical trials, manufacturing development efforts and activities related to regulatory filings for product candidates. We recognize research and development expenses as they are incurred. Our research and development expense primarily consist of:
| ● | clinical trial and regulatory-related costs; |
| ● | expenses incurred under agreements with investigative sites and consultants that conduct our clinical trials; |
| ● | manufacturing and testing costs and related supplies and materials; and |
| ● | employee-related expenses, including salaries, benefits, travel and stock-based compensation. |
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The following table summarizes our research and development expenses by product candidate for the periods indicated (in thousands):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| External Costs | ||||||||||||||||
| DN-TNF - Alzheimer’s disease | $ | 83 | $ | 1,188 | $ | 341 | $ | 9,289 | ||||||||
| CORDStrom (RDEB) & INKmune (Prostate cancer) | 2,381 | 1,084 | 7,088 | 3,449 | ||||||||||||
| Preclinical and other programs | 239 | 90 | 260 | 152 | ||||||||||||
| Accrued research and development credit reimbursement | (875 | ) | (150 | ) | (5,278 | ) | (486 | ) | ||||||||
| Total external costs | 1,828 | 2,212 | 2,411 | 12,404 | ||||||||||||
| Internal costs | 1,335 | 2,675 | 3,590 | 5,926 | ||||||||||||
| Total | $ | 3,163 | $ | 4,887 | $ | 6,001 | $ | 18,330 | ||||||||
We typically use our employee resources across our development programs. We track outsourced development costs by product candidate or development program, but we do not allocate internal personnel costs including salaries and stock-based compensation to specific product candidates or development programs.
We participate, through our wholly owned subsidiary in Australia, in the Australian research and development tax incentive program, such that a percentage of our qualifying research and development expenditures are reimbursed by the Australian government, and such incentives are reflected as a reduction of research and development expense. The Australian research and development tax incentive is recognized when there is reasonable assurance that the incentive will be received, the relevant expenditure has been incurred and the amount of the consideration can be reliably measured.
We participate, through our wholly owned subsidiary in the United Kingdom, in the research and development program provided by the United Kingdom tax relief program, such that a percentage of our qualifying research and development expenditures are reimbursed by the United Kingdom government, and such incentives are reflected as a reduction of research and development expense. The United Kingdom research and development tax incentive is recognized when there is reasonable assurance that the incentive will be received, the relevant expenditure has been incurred and the amount of the consideration can be reliably measured.
Substantially all our research and development expenses to date have been incurred in connection with our current and future product candidates. We expect our research and development expenses to increase significantly for the foreseeable future as we advance an increased number of our product candidates through clinical development, including the conduct of our planned clinical trials and manufacturing drug to be used in those clinical trials. The process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming. The successful development of product candidates is highly uncertain. At this time, we cannot reasonably estimate the nature, timing or costs required to complete the remaining development of any product candidates. This is due to the numerous risks and uncertainties associated with the development of product candidates.
The costs of clinical trials may vary significantly over the life of a project owing to, but not limited to, the following:
| ● | per patient trial costs; |
| ● | the number of sites included in the clinical trials; |
| ● | the countries in which the clinical trials are conducted; |
| ● | the length of time required to enroll eligible patients; |
| ● | the number of patients that participate in the clinical trials; |
| ● | the number of doses that patients receive; |
| ● | the cost of comparative agents used in clinical trials; |
| ● | the drop-out or discontinuation rates of patients; |
| ● | potential additional safety monitoring or other studies requested by regulatory agencies; |
| ● | the duration of patient follow-up; |
| ● | the efficacy and safety profile of the product candidate; and |
| ● | the cost of manufacturing, finishing, labelling and storage of drug used in the clinical trial. |
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We are targeting regulatory approval for CORDStrom in the United Kingdom in 2027, although the timing and outcome of the regulatory review remain uncertain. If approval is obtained, we intend to commence commercialization following completion of the necessary commercial preparations. We expect to continue to incur significant expenses and operating losses for the foreseeable future, including as we prepare for potential commercialization, and these amounts may fluctuate significantly from quarter to quarter and year to year. We anticipate that our expenses will increase substantially as we:
| ● | continue research and development, including preclinical and clinical development of our existing product candidates; | |
| ● | potentially seek regulatory approval for our product candidates; | |
| ● | seek to discover and develop additional product candidates; | |
| ● | establish a commercialization infrastructure and scale up our manufacturing and distribution capabilities to commercialize any of our product candidates for which we may obtain regulatory approval; |
| ● | seek to comply with regulatory standards and laws; | |
| ● | maintain, leverage and expand our intellectual property portfolio; | |
| ● | hire clinical, manufacturing, scientific and other personnel to support our product candidates development and future commercialization efforts; | |
| ● | add operational, financial and management information systems and personnel; and | |
| ● | incur additional legal, accounting and other expenses in operating as a public company. |
Results of Operations
Comparison of the Three Months Ended September 30, 2026 and 2025
The following table summarizes our results of operations for the periods indicated:
| Three Months Ended September 30, | ||||||||||||
| (in thousands) | 2026 | 2025 | Change | |||||||||
| Revenues | $ | - | $ | - | $ | - | ||||||
| Operating expenses: | ||||||||||||
| Research and development | 3,163 | 4,887 | (1,724 | ) | ||||||||
| General and administrative | 1,846 | 2,546 | (700 | ) | ||||||||
| Total operating expenses | 5,009 | 7,433 | (2,424 | ) | ||||||||
| Loss from operations | (5,009 | ) | (7,433 | ) | 2,424 | |||||||
| Other income, net | 287 | 961 | (674 | ) | ||||||||
| Net loss | $ | (4,722 | ) | $ | (6,472 | ) | $ | 1,750 | ||||
Research and Development
Research and development expense was approximately $3.2 million and $4.9 million during the three months ended September 30, 2026 and 2025, respectively. The Company recorded $0.7 million of additional R&D rebate during the three months ended September 30, 2026 as a result of the Company recording additional amounts which it estimates are recoverable pursuant to the UK R&D rebate program. In addition, the Company incurred $1.1 million less expenses related to our Alzheimer’s clinical program due to the Company completing its Phase 2 trial during 2025, and $1.3 million lower expenses due to the Company incurring lower internal costs, partially offset by the Company incurring $1.3 million of higher CORDStrom/INKmune costs related to preparations to submit CORDStrom for marketing authorization in the United Kingdom, Europe and the United States.
General and Administrative
General and administrative expenses were $1.8 million and $2.5 million during the three months ended September 30, 2026 and 2025, respectively. The decrease in costs in 2026 is mainly due to the Company incurring $0.8 million lower stock-based compensation in 2026.
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Other Income, net
During the three months ended September 30, 2026, the Company’s other income consisted of interest income.
During the three months ended September 30, 2025, the Company recorded $1.0 million of other income, of which approximately $0.6 million was gain on forgiveness of payables from two vendors and approximately $0.4 million was due to interest income.
Comparison of the Nine Months Ended September 30, 2026 and 2025
The following table summarizes our results of operations for the periods indicated:
| Nine Months Ended September 30, | ||||||||||||
| (in thousands) | 2026 | 2025 | Change | |||||||||
| Revenues | $ | - | $ | 50 | $ | (50 | ) | |||||
| Operating expenses: | ||||||||||||
| Research and development | 6,001 | 18,330 | (12,329 | ) | ||||||||
| General and administrative | 6,296 | 7,115 | (819 | ) | ||||||||
| Impairment of acquired in-process research and development intangible assets | - | 16,514 | (16,514 | ) | ||||||||
| Total operating expenses | 12,297 | 41,959 | (29,662 | ) | ||||||||
| Loss from operations | (12,297 | ) | (41,909 | ) | 29,612 | |||||||
| Other income, net | 895 | 1,240 | (345 | ) | ||||||||
| Net loss | $ | (11,402 | ) | $ | (40,669 | ) | $ | 29,267 | ||||
Revenues
During the nine months ended September 30, 2025, the Company recognized revenue from a license agreement that was terminated during 2025.
Research and Development
Research and development expenses were approximately $6.0 million and $18.3 million during the nine months ended September 30, 2026 and 2025, respectively. The change in research and development expenses during the nine months ending September 30, 2026 compared to the nine months ending September 30, 2025 is mainly due to the Company incurring $8.9 million less Alzheimer’s clinical program expenses due to the trial being completed in 2025, $4.8 million higher rebate mainly due to additional amounts recorded in connection with the receipt of the 2025 rebate claim by the Australia subsidiary as well as recording additional amounts for the UK subsidiary as a result of additional R&D activity in the UK and $2.3 million lower internal costs, partially offset by the Company recording $3.6 million higher expenses for CORDStrom/INKmune related to preparations to submit CORDStrom for marketing authorization in the United Kingdom, Europe and the United States.
General and Administrative
General and administrative expenses were approximately $6.3 million and $7.1 million during the nine months ended September 30, 2026 and 2025, respectively. The decrease in general and administrative expenses was mainly due to incurring $0.8 million lower stock-based compensation expense in 2026.
Impairment of acquired in-process research and development intangible assets
During the nine months ended September 30, 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 is 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 below its carrying value. Following a quantitative impairment assessment, the Company estimated the asset’s fair value at $0, resulting in a recorded impairment of $16.5 million during the second quarter of 2025.
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Other Income, net
During the nine months ended September 30, 2026 and 2025, the Company earned $0.9 million and $1.2 million of other income.
During the nine months ended September 30, 2026, the Company’s other income mainly consisted of $0.6 million of interest income and $0.1 million of gain on foreign exchange and $0.1 million of gain on settlement of accounts payable.
During the nine months ended September 30, 2025, the Company recorded $1.2 million of other income, of which $0.6 million was due to the Company earning interest income on its cash investments and $0.6 million was gain on forgiveness of payables.
Liquidity and Capital Resources
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate on an ongoing basis.
We incurred a net loss of $11.4 million and $40.7 million for the nine months ended September 30, 2026 and 2025, respectively. Net cash used in operating activities was $10.0 million and $19.6 million for the nine months ended September 30, 2026 and 2025, respectively. Since inception, we have funded our operations primarily with proceeds from the sales of our common stock. As of September 30, 2026, we had cash and cash equivalents of $16.3 million. We anticipate that operating losses and net cash used in operating activities will increase over the next few years as we advance our products under development.
Our primary uses of capital are, and we expect will continue to be, third-party clinical and preclinical research and development services, costs incurred to manufacture our drugs under development, compensation and related expenses, legal, patent and other regulatory expenses and general overhead costs. We believe our use of CROs provides us with flexibility in managing our spending.
The Company incurs significant research and development expenses in Australia and the United Kingdom. Fluctuations in the rate of exchange between the United States dollar and the pound sterling as well as the Australian dollar could adversely affect our financial results, including our expenses as well as assets and liabilities. We currently do not hedge foreign currencies but will continue to assess whether that strategy is appropriate. As of September 30, 2026, the cash balance held by our foreign subsidiaries with currencies other than the United States dollar was approximately $0.6 million.
Our recurring net losses and negative cash flows from operations, as well as forecast of continued losses and negative cash flows from operations, raised substantial doubt regarding our ability to continue as a going concern within one year after the issuance of our unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2026. Until we can generate sufficient revenue from the commercialization of our product candidates, we expect to finance our operations through the public or private sale of equity, debt financing or other capital sources, such as government funding, collaborations, strategic alliances, divestment of non-core assets, or licensing arrangements with third parties. Our cash and cash equivalents were $16.3 million and total current assets were $18.7 million at September 30, 2026, which the Company is projecting will be insufficient to sustain its operations through one year following the date that the financial statements are issued.
Additional capital may not be available on reasonable terms, if at all. If we are unable to raise additional capital in sufficient amounts or on terms acceptable to us, we may have to significantly delay, scale back or discontinue the development of one or more of our product candidates or cease operations. If we raise additional funds through the issuance of additional debt or equity securities it could result in dilution to our existing stockholders, increased fixed payment obligations and these securities may have rights senior to those of our common stock and could contain covenants that would restrict our operations and potentially impair our competitiveness, such as limitations on our ability to incur additional debt, limitations on our ability to acquire, sell or license our intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business. Any of these events could significantly harm our business, financial condition and prospects.
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ATM Sales Agreement
On December 19, 2025, the Company entered into a sales agreement with A.G.P./Alliance Global Partners (“AGP”), as sales agent, pursuant to which the Company may offer and sell, from time to time, up to $65,000,000 of shares of its common stock through AGP in exchange for a 3% commission on gross proceeds. During the nine months ended September 30, 2026, the Company sold 598,947 shares of common stock at an average price of $1.80 per share under the ATM program. The aggregate net proceeds were approximately $1.0 million after expenses.
Warrants Inducement
On June 30, 2026, the Company entered into a warrant inducement agreement with certain holders of its April 2024 common stock purchase warrants. Under the agreements, the holders exercised an aggregate of 674,155 warrants, representing 50% of their holdings, at a reduced exercise price of $1.40 per share (original exercise price of $1.95), resulting in gross proceeds to the Company of approximately $0.9 million.
In consideration for the exercise, the expiration date of the holders’ remaining 674,160 April 2024 warrants was extended from June 30, 2026 to December 31, 2027. All other terms of the remaining warrants, including the $1.95 exercise price, remained unchanged. The aggregate intrinsic value of these warrants was $0 at September 30, 2026.
Research and Development Tax Rebates
The Company participates in government-sponsored research and development incentive programs in Australia and the United Kingdom, which provide cash rebates for qualifying research and development expenditures. These programs represent a source of non-dilutive funding that supports the Company’s research and development activities, although the timing and amount of future rebates is dependent upon eligible expenditures, applicable program requirements, and governmental review and payment processes.
During the nine months ended September 30, 2026, the Company received approximately $8.6 million of cash rebates under these programs, consisting of approximately $7.8 million from Australia and approximately $0.8 million from the United Kingdom. These cash receipts have strengthened the Company’s liquidity and supported the funding of its ongoing operations.
Based on our current research and development plans, we do not anticipate receiving material additional research and development tax rebates from Australia in the near term. Accordingly, the Australian rebate receipts during the nine months ended September 30, 2026 are not indicative of expected future receipts.
Common stock and warrant financing
On October 29, 2026, the Company received approximately $4.0 million in net proceeds from the sale of common stock, in a registered direct offering, and from the issuance in a concurrent private placement of warrants to purchase common stock. These proceeds provided additional liquidity to fund the Company’s ongoing operations.
Cash Flows
The following table summarizes our cash flows for the periods indicated:
| Nine Months Ended September 30, | ||||||||
| (in thousands) | 2026 | 2025 | ||||||
| Net cash and cash equivalents (used in) provided by: | ||||||||
| Operating activities | $ | (9,969 | ) | $ | (19,638 | ) | ||
| Investing activities | (430 | ) | (899 | ) | ||||
| Financing activities | 2,075 | 27,545 | ||||||
| Change in cash and cash equivalents | (8,324 | ) | 7,008 | |||||
| Impact on cash from foreign currency translation | (98 | ) | (196 | ) | ||||
| Cash and cash equivalents, beginning of period | 24,751 | 20,922 | ||||||
| Cash and cash equivalents, end of period | $ | 16,329 | $ | 27,734 | ||||
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Operating Activities
Operating activities used approximately $10.0 million of cash during the nine months ended September 30, 2026, primarily reflecting our net loss of $11.4 million and approximately $2.6 million of cash used from changes in operating assets and liabilities, principally a $5.5 million decrease in accounts payable and accrued liabilities and a $0.3 million increase in other taxes receivable. These uses were partially offset by approximately $4.0 million of non-cash stock-based compensation expense.
Operating activities used approximately $19.6 million of cash during the nine months ended September 30, 2025, primarily reflecting our net loss of $40.7 million, net cash used from changes in operating assets and liabilities of $1.5 million, and an adjustment to remove a non-cash gain on forgiveness of accounts payable of $0.6 million, partially offset by non-cash impairment expense of $16.5 million and stock-based compensation expense of $6.6 million. The net cash used from changes in operating assets and liabilities primarily reflected increases in other assets of $0.7 million, research and development tax credit receivable of $0.5 million and other tax receivable of $0.5 million, together with a decrease in deferred liabilities of $0.5 million, partially offset by an increase in accounts payable and accrued liabilities of $1.0 million.
Investing Activities
During the nine months ended September 30, 2026 and 2025, the Company acquired $0.4 million and $0.9 million, respectively, of equipment to be used in its CORDStrom clinical program.
Financing Activities
During the nine months ended September 30, 2026, the Company sold 598,947 shares of common stock under its ATM program for net proceeds of $1.0 million.
During June 2026, holders exercised 674,155 warrants for aggregate gross proceeds of approximately $0.9 million.
During the nine months ended September 30, 2026, option holders exercised 57,292 options in exchange for $0.1 million of cash.
During the nine months ended September 30, 2025, the Company sold 1,304,707 shares of common stock under its ATM program for net proceeds of $10.1 million.
During June 2025, the Company sold 3,000,000 shares of its common stock in a registered direct offering in exchange for gross proceeds of $18.9 million (net proceeds of $17.4 million).
Critical Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses. Actual results may differ from these estimates. Our critical accounting estimates are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and there have been no material changes during the nine months ended September 30, 2026.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) at the end of the period covered by this quarterly report.
Based on this evaluation, we concluded that, as of such date, our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
We recognize that any controls system, no matter how well designed and operated, can provide only reasonable assurance of achieving its objectives, and our management necessarily applies its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during the period covered by this quarterly report that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act).
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings
We are not currently a party to any pending legal proceedings that we believe will have a material adverse effect on our business or financial conditions. We may, however, be subject to various claims and legal actions arising in the ordinary course of business from time to time.
Item 1A. Risk Factors
Not required for smaller reporting companies.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During the fiscal quarter ended September 30, 2026, none of the Company’s directors or officers
Item 6. Exhibits
| No. | Description | |
| 31.1 | Rule 13a-14(a)/ 15d-14(a) Certification of Chief Executive Officer* | |
| 31.2 | Rule 13a-14(a)/ 15d-14(a) Certification of Chief Financial Officer* | |
| 32.1 | Section 1350 Certification of Chief Executive Officer** | |
| 32.2 | Section 1350 Certification of Chief Financial Officer** | |
| 101.INS | Inline XBRL Instance Document. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
| * | Filed herewith. |
| ** | Furnished herewith. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| INmune Bio Inc. | ||
| Date: November 5, 2026 | By: | /s/ David Moss |
| David Moss | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| Date: November 5, 2026 | By: | /s/ Cory Ellspermann |
| Cory Ellspermann | ||
| Chief Financial Officer | ||
| (Principal Financial and Accounting Officer) |
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