ENLIVEX THERAPEUTICS LTD. FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 ENLIVEX THERAPEUTICS LTD. FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 INDEX Page Report of Independent Registered Public Accounting Firm F-2 Consoli

ENLIVEX THERAPEUTICS LTD.

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024

ENLIVEX THERAPEUTICS LTD.

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING

To the Board of Directors and Shareholders of ENLIVEX

Opinions on the Financial Statements and Internal

Control over Financial Reporting

We have audited the accompanying

balance sheets of Enlivex Therapeutics Ltd. and subsidiaries (the "Company") as of December 31, 2024 and 2023, and the related

statements of operations, comprehensive loss, shareholders' equity, and cash flows for each of the years in the three-year period

ended December 31, 2024, and the related notes (collectively referred to as the financial statements).

We also have audited the Company's

internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control-Integrated

Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the financial

statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and

2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in

conformity with accounting principles generally accepted in the United States of America.

Also, in our opinion, the Company maintained, in all

material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal

Control-Integrated Framework (2013) issued by COSO.

The Company's management

is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment

of the effectiveness of internal control over financial reporting included in the accompanying Management's Annual Report on Internal

Control over Financial Reporting.

Our responsibility is to express

an opinion on the Company's financial statements and an opinion on the Company's internal control over financial reporting

based on our audits.

We are a public accounting firm

registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect

to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange

Commission and the PCAOB.

We conducted our audits in accordance

with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether

the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over

financial reporting was maintained in all material respects.

Our audits of the financial statements

included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,

and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts

and disclosures in the financial statements.

Our audits also included evaluating

the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial

Our audit of internal control

over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material

weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

Our audits also included performing

such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over

A company's internal control

over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

A company's internal control

over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions

are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and

that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the

company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition

of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations,

internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness

to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of

compliance with the policies or procedures may deteriorate.

Critical Audit Matters

Critical audit matters are matters

arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee

and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,

subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated

financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinion

on the critical audit matters or on the respective accounts or disclosures to which they relate.

Accrued clinical trial expenses

Description of the matter -

As discussed in Note 2 to the

consolidated financial statements, the Company records costs for clinical trial activities based upon estimates of costs incurred through

the balance sheet date that have yet to be invoiced by the contract research organizations and other vendors.

Auditing the Company's accruals

for clinical trial activities is challenging due to the fact that information necessary to estimate the accruals for the services that

have been received during the reporting period is accumulated from multiple sources, including the Company's personnel who oversee

the clinical trial activities, information from service providers and terms and conditions included in the contracts with the service

In addition, in certain circumstances,

the determination of the nature and level of services that have been received during the reporting period requires judgment because the

historical timing and pattern of vendor invoicing does not correspond to the level of services provided, and there may be delays in invoicing

from clinical study sites and other vendors.

How we addressed the matter

We obtained an understanding,

evaluated the design and tested the operating effectiveness of internal controls that addressed the identified risks related to the Company's

process for recording accrued clinical trial expenses. Our procedures also included, among others, reviewing agreements and contract amendments

entered into with vendors in connection with conducting clinical trials, evaluating the significant assumptions described above and the

methods used in developing the clinical trial estimates, and calculating the amounts that were unpaid at the balance sheet date. We confirmed

selected liabilities recorded directly with the third parties involved in performing research and development services on behalf of the

Company. We also made direct inquiries of financial and clinical trial personnel regarding status and progress of clinical trials. We

compared the current estimate of expenses incurred to estimates previously made by management and assessed the historical accuracy of

management's previous estimates. We also examined invoices issued and payments made to service providers after the consolidated

ENLIVEX THERAPEUTICS LTD.

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share data)