InflaRx N.V. Amsterdam Condensed Consolidated Interim Financial Statements InflaRx N.V. and subsidiaries Unaudited condensed consolidated statements of comprehensive loss For the three months ended September 30, For the

Condensed Consolidated Interim

Financial Statements

InflaRx N.V. and subsidiaries

consolidated statements of comprehensive loss

The notes are an integral

part of these condensed consolidated financial statements.

InflaRx N.V. and subsidiaries

Condensed consolidated

statements of financial position

The notes are an integral

part of these condensed consolidated financial statements.

InflaRx N.V. and subsidiaries

consolidated statements of changes in equity

The notes are an integral

part of these condensed consolidated financial statements.

InflaRx N.V. and subsidiaries

consolidated statement of cash flows

The notes are an integral

part of these condensed consolidated financial statements.

InflaRx N.V. and subsidiaries

Index to notes to the condensed consolidated

interim financial statements

InflaRx N.V. and subsidiaries

Notes to the condensed consolidated interim

financial statements

The condensed consolidated interim financial

statements of InflaRx N.V. (in the following, "InflaRx" or the "Company") and its subsidiaries for the

nine months ended September 30, 2018 were authorized for issue in accordance with a resolution of the directors on November 20,

InflaRx N.V., is a Dutch public company

with limited liability (naamloze vennootschap), incorporated in the Netherlands (Commercial Register of The Netherlands Chamber

of Commerce Business Register under CCI number 68904312) and domiciled in Jena, Germany. The registered office is located in Jena,

Germany, Winzerlaer Stra e 2. The Company`s shares are publicly traded on the Nasdaq Global Select Market under the symbol

InflaRx is a clinical-stage biopharmaceutical

company focused on applying its proprietary technology to discover and develop first-in-class potent and specific inhibitors of

the complement activation factor known as C5a.

These condensed consolidated interim financial

statements (in the following "financial statements") of InflaRx comprise the Company and its wholly-owned subsidiaries

InflaRx GmbH and InflaRx Pharmaceutical Inc., a Delaware corporation (together, the "Group").

The financial statements for the three and

nine months ended September 30, 2018 have been prepared in accordance with IAS 34 Interim Financial Reporting. The financial

statements do not include all the information and disclosures required in the annual financial statements, and should be read in

conjunction with the Group's annual consolidated financial statements as at December 31, 2017.

This is the first set of the Group's

financial statements where IFRS 15 and IFRS 9 have been applied, as described in section e).

The preparation of the financial statements

in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting

policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the

period in which the estimates are revised and in any future periods affected.

In preparing these financial statements,

the critical judgments made by management in applying the Group's accounting policies and the key accounting estimates were

the same as those that applied to the annual consolidated financial statements as at and for the year ended December 31, 2017.

These financial statements are presented

in thousands of Euro, which is also the functional currency of InflaRx N.V. and InflaRx GmbH. All financial information presented

in Euro has been rounded to the nearest thousand (abbreviated thousand) or million (abbreviated million).

We have presented financial information

in thousand and million euros. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation

of the figures that precede them or may deviate from other tables by one thousand euros at a maximum.

The accounting policies adopted in the preparation

of the financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial

statements for the year ended December, 31 2017, except for the adoption of new standards effective as of January 1, 2018.

The Group has not early adopted any other

standard, interpretation or amendment that has been issued but is not yet effective.

The Group applies in the financial statements,

for the first time, IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, that require restatement of

previous financial statements. As required by IAS 34, the nature and effect of these changes are disclosed below. Several other

amendments and interpretations apply for the first time in 2018, but do not have an impact on the financial statements of the Group.

IFRS 15, Revenue from Contracts with Customers, replaces all

current standards and interpretations dealing with revenue recognition and introduces a five-step model to account for revenue.

As the Group is currently not generating revenues, the Group may only be affected by IFRS 15 in the future when entering into collaboration

arrangements or similar transactions.

IFRS 9 contains a new classification and measurement approach

for financial assets that reflects the business model in which assets are managed and their cash flow characteristics. IFRS 9 further

replaces the incurred loss' model in IAS 39 with a forward-looking expected credit loss' (ECL) model.

This will require considerable judgement about how changes in economic factors affect ECLs, which will be determined on a probability-weighted

basis. IFRS 9 will require extensive new disclosures, in particular about hedge accounting, credit risk and ECLs.

The Group applies IFRS 9 with an initial application date of

January 1, 2018. Because the Group held on the initial application date only immaterial non-current financial assets, cash and

cash equivalents, no trade receivables and no derivative financial instruments or financial liabilities, the impact of IFRS 9 is

determined to be nil, except for the disclosures required. Classification for other receivables and cash and cash equivalents changed

from "loans and receivables" (IAS 39) to "amortized cost" (IFRS 9).

The consolidated statement of financial

position as at January 1, 2018 was not restated, as the impact of IFRS 9 in the absence of material financial instruments

The following amendments, applicable to reporting periods started

January 1, 2018, do not have any impact on the Group's financial statements:

The following standards and amendments, applicable to reporting

periods starting January 1, 2019, and later, are not expected to have any material impact on the Group's financial statements,

except as described below the table:

IFRS 16 Leases replaces existing guidance, including IAS 17 Leases,

IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases - Incentives and SIC-27 Evaluating the

Substance of Transactions Involving the Legal Form of a Lease. The standard is effective for annual periods beginning on or after

January 1, 2019. Early adoption is permitted for entities that apply IFRS 15 at or before the date of initial application of IFRS

16. So far, the most significant impact identified is that the Group will recognize new assets and liabilities for its operating

leases. As at December 31, 2017, the Group's future minimum lease payments under non-cancellable operating leases amounted

0.7 million, which is the currently estimated impact on the consolidated statement of financial position of the Group.