Inmune Bio, Inc. Income Taxes Disclosure

NOTE 11 – INCOME TAXES

Loss before income taxes summarized by region was as follows:

The provision for income taxes consists of the following components:

A reconciliation of income tax benefit computed using the federal statutory income tax rate to the Company’s tax expense for the year ended December 31, 2025 after the adoption of ASU 2023-09 is as follows:

A reconciliation of income tax benefit computed using the federal statutory income tax rate to the Company’s tax expense for the year ended December 31, 2024 before the adoption of ASU 2023-09 is as follows:

The principal components of deferred tax assets and liabilities consist of the following at December 31, 2025 and 2024, respectively:

We file income tax returns in the United States, the United Kingdom and Australia. The Company is no longer subject to Internal Revenue Service tax examinations by tax authorities for years prior to 2022. The United Kingdom and Australia are no longer subject to income tax examination for years prior to 2024 and 2023, respectively.

As of December 31, 2025, the Company has a federal net operating loss carryforward of approximately $64.9 million, a United Kingdom net operating loss carryforward of $22.9 million and an Australia net operating loss carryforward of $21.9 million. The federal net operating loss carryforwards for 2017 will begin to expire in the year ending December 31, 2037. The remaining federal net operating loss carryforwards generated after 2017 have no expiration. The United Kingdom and Australia net operating losses have no expiration. The Company has net operating loss carryforwards in California and Florida of $14.9 million and $46.5 million, respectively, of which the California net operating losses will begin to expire in the year ending December 31, 2037, and the Florida net operating losses have no expiration.

The Company’s gross deferred tax assets of $34.7 million and $25.7 million at December 31, 2025 and 2024, respectively, primarily consist of net operating loss carryforwards for income tax purposes. A valuation allowance is required to be recorded when it is not more likely than not that some portion or all of the net deferred tax assets will be realized. Since the Company cannot be assured of generating taxable income and thereby realizing the net deferred tax assets, a full valuation allowance has been recorded. The change in the valuation allowance was $9.0 million during the year ended December 31, 2025.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as expensing of U.S. research expenditures and eligible capital expenditures, the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The impacts of the OBBBA are reflected in our results for the year ended December 31, 2025, and there was no impact to our income tax expense or effective income tax rate. 

The Company recognizes uncertain tax positions in accordance with ASC 740 on the basis of evaluating whether it is more likely than not that the tax positions will be sustained upon examination by tax authorities. For those tax positions that meet the more-likely-than not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2025, and 2024, the Company has no significant uncertain tax positions. There are no unrecognized tax benefits included on the balance sheet that would, if recognized, impact the effective tax rate. The Company does not anticipate there will be a significant change in unrecognized tax benefits within the next 12 months.