InflaRx N.V. Unaudited Condensed Consolidated Financial Statements

Condensed Consolidated

Statements - June 30, 2023

unaudited condensed financial statements are consolidated financial statements for the group consisting of InflaRx N.V. and its wholly-owned

subsidiaries InflaRx GmbH, Jena, Germany, and InflaRx Pharmaceuticals Inc., Ann Arbor, Michigan, United States (together, the "Group").

The financial statements are presented in euros ( ).

N.V. is a company limited by shares, incorporated and domiciled in Amsterdam, The Netherlands.

registered office and principal place of business is in Germany, Jena, Winzerlaer Str. 2.

to Unaudited Condensed Consolidated Financial Statements

the three and six months ended June 30, 2023

N.V. and subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss

for the three and six months ended June 30, 2023 and 2022

accompanying notes are an integral part of these condensed consolidated financial statements.

N.V. and subsidiaries

Condensed Consolidated Statements of Financial Position

as of June 30, 2023 and December 31, 2022

accompanying notes are an integral part of these condensed consolidated financial statements.

N.V. and subsidiaries

Condensed Consolidated Statements of Changes in Shareholders' Equity

for the six months ended June 30, 2023 and 2022

accompanying notes are an integral part of these condensed consolidated financial statements.

N.V. and subsidiaries

Condensed Consolidated Statements of Cash Flows

for the six months ended June 30, 2023 and 2022

accompanying notes are an integral part of these condensed consolidated financial statements.

N.V. and subsidiaries

to the Unaudited Condensed Consolidated Financial Statements

N.V. (the "Company" or "InflaRx") is a Dutch public company with limited liability (naamloze vennootschap)

with its corporate seat in Amsterdam, the Netherlands, and is registered in the Commercial Register of the Netherlands Chamber of Commerce

Business Register under CCI number 68904312. The Company's registered office is at Winzerlaer Stra e 2 in 07745 Jena, Germany.

Since November 10, 2017, InflaRx N.V.'s ordinary shares have been listed on the Nasdaq Global Select Market under the symbol IFRX.

is a biopharmaceutical company focused on applying its proprietary anti-C5a and C5aR technologies to discover, develop and commercialize

first-in-class, potent and specific inhibitors of the complement activation factor known as C5a. On April 4, 2023, the US Food and Drug

Administration (FDA) issued an Emergency Use Authorization (EUA) for the emergency use of the Company's monoclonal anti-C5a antibody

vilobelimab, under the brand name Gohibic, for the treatment of COVID-19 in hospitalized adults. These consolidated financial statements

of InflaRx comprise the Company and its wholly-owned subsidiaries, InflaRx GmbH, Jena, Germany, and InflaRx Pharmaceuticals Inc., Ann

Arbor, Michigan, United States (together referred to as the "Group").

interim condensed consolidated financial statements for the three- and six-month reporting periods ended June 30, 2023, and 2022 have

been prepared in accordance with IAS 34 Interim Financial Reporting. These condensed consolidated financial statements do not include

all the information and disclosures required in the annual financial statements. Accordingly, this report is to be read in conjunction

with the financial statements in our annual report for the year ended December 31, 2022 on form 20-F.

interim condensed consolidated financial statements were authorized for issue by the board of directors of the Company (the "Board

of Directors") on August 9, 2023.

financial statements are presented in euros ( ). The euro is the functional currency of InflaRx N.V. and InflaRx GmbH. The functional

currency of InflaRx Pharmaceuticals Inc. is the U.S. dollar. Effective January 1, 2023, the functional currency of InflaRx N.V. changed

from the U.S. dollar to the euro due to a change in the Company's operational function and, in turn, a change in the primary currency

of its underlying transactions. This change in functional currency has been accounted for prospectively.

financial information presented in euros have been rounded. 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.

accounting policies adopted are consistent with those followed in the preparation of the Group's annual consolidated financial

statements for the year ended December 31, 2022, except for the adoption of new standards effective as of January 1, 2023, as set out

below. The Group has not adopted any other standard, interpretation or amendment that has been issued but is not yet effective early.

following IFRS standards have been applied starting in Q2 2023 for the first time ever, as no transactions in the scope of these IFRS

standards had been previously recognized and are not expected to have a significant impact on the Company's consolidated financial

statements in future periods.

to IAS 2, inventories are stated at the lower amount of cost or their net realizable value. Cost comprises direct materials and, where

applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and

condition. Cost is calculated using the weighted average cost method. Net realizable value represents the estimated selling price less

all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

will be recognized when a performance obligation has been satisfied through the transfer of a promised good or service to a customer.

An asset is transferred when the customer obtains control of that asset. Revenue will be recognized at the point in time that the control

of the products is transferred to the customer and measured considering return liabilities. As of June 30, 2023, no revenue has been

following amendments were adopted effective January 1, 2023, and do not have a material impact on the consolidated financial statements

following standards issued will be adopted in a future period, and the potential impact, if any, they will have on the Group's

consolidated financial statements is being assessed:

income for the three months ended June 30, 2023 amounted to 4.9 million (PY: 14.4 million) and for the six months ended June

30, 2023 amounted to 12.6 million (PY: 14.4 million), which is primarily attributable to income recognized from grant payments

received from the German federal government for the development of vilobelimab as treatment for critically ill COVID patients, including

expenses related to clinical development and manufacturing process development. The decrease in income from government grants is primarily

due to a non-recurring catch-up effect of costs incurred in preceding periods for which income recognition was deferred until the three

months ended June 30, 2022 when the recognition criteria were met.

net financial result comprises the following items for the three- and six-months ended June 30, 2023 and 2022, respectively:

income is derived from marketable securities and short-term deposits held by the Company and its subsidiary InflaRx GmbH:

exchange income and expense is mainly derived from the translation of the U.S. Dollar cash, cash equivalents and securities held by InflaRx

GmbH and InflaRx N.V.

financial result is attributable to the expected credit loss allowance, which is deducted from the Company's current and non-current

Company valued inventories at manufacturing cost in its consolidated statements of financial position as of June 30, 2023. Inventories

do not include costs relating to production of products before the granting of the EUA for Gohibic (vilobelimab), since those were expensed

in previous reporting periods as research and development expenses in the period incurred.

the three and the six months ended June 30, 2023, there were no write-downs of inventories.

of June 30, 2023, prepayments on research & development projects amounted to 4.8 million compared to 9.8 million as of

December 31, 2022, and consist of prepayments on clinical and R&D material production contracts. The decrease in prepayments results

from manufacturing development activities, which were partly completed in the six months ended June 30, 2023.

expenses mainly consist of prepaid insurance expense.

reduction of the amounts in the category "others" primarily relate to credit notes issued to the Company by CROs, which were

still outstanding as of December 31, 2022 and were paid in 2023.

out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of June 30,

2023 and December 31, 2022: