INFLARX N.V. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - MARCH 31, 2019 These unaudited condensed financial statements are consolidated financial statements for the group consisting of InflaRx N.V. and its wh

UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS - MARCH 31, 2019

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

subsidiaries InflaRx GmbH, and InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, United States (together, the "Group"). The financial statements are presented in Euro ( ).

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

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

All press releases, financial reports and other information are available in the investor's register on our website: www.inflarx.de

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2019

InflaRx N.V. and subsidiaries

Unaudited Condensed Consolidated Statements of Comprehensive Loss

for the three months ended March 31, 2019 and 2018,

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

InflaRx N.V. and subsidiaries

Unaudited Condensed Consolidated Statements of Financial Position

as of March 31, 2019 and December 31, 2018

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

InflaRx N.V. and subsidiaries

Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity

for the three months ended March 31, 2019 and 2018

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

InflaRx N.V. and subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

for the three months ended March 31, 2019 and 2018

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

InflaRx N.V. and subsidiaries

Notes to the Unaudited Condensed Consolidated Financial Statements

1. Net Financial Result

The net financial result is comprised of the following items for the three months ended March 31:

On the reporting date, assets and liabilities are translated at the closing rate. Any foreign exchange rate di erences derived from these translations are recognized in the consolidated statement of profit or loss as part of finance income.

Interest income results from marketable securities held by the Company and short-term deposits in U.S. Dollar held by the Company

and its subsidiary InflaRx GmbH.

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

InflaRx GmbH. These funds are translated at the exchange rates prevailing on the reporting date. Any resulting translation di erences are recognized in pro t or loss.

U.S. Dollar denominated funds of the Company do not materially impact foreign exchange results, as the Company has changed its functional currency from Euro to U.S. Dollar.

2. Other non-financial assets

Prepaid expense mainly consists of accrued insurance expense for Directors and Officers and insurance expenses together with

the placement of shares in May 2018.

3. Financial assets and financial liabilities

Set out below is an overview of financial assets and liabilities, other than cash and short-term deposits, held by the Group as

at March 31, 2019 and December 31, 2018:

The fair value of current and non-current financial assets (primarily quoted debt securities with, credit ratings ranging from

AA- to AAA) amounted to 102,884 thousand (level 1). The Group's debt instruments at amortized cost consist solely of quoted securities that are graded in the top investment category (AA- to AAA) by credit rating agencies such as S&P Global

and, therefore, are considered low credit risk investments. Based on statistical historical probabilities of default, adjusted for forward-looking factors specific to the debtors and the economic environment, the Group believes that the expected

credit losses for these debt instruments are immaterial. Furthermore, since the acquisition of these debt securities, their credit ratings have remained stable.

4. Cash and cash equivalents information

5. Related party transactions

The Group's executive management comprises the following persons:

The Group's board of directors comprises the following persons:

Non-executive Directors

The compensation of the Group's executive management comprises the following for the three months ended March 31:

Remuneration of InflaRx's executive management consists of fixed and variable components and share-based payment awards. In

addition, the executive management receives supplementary benefits and allowances.

We entered into indemnification agreements with our directors and senior management. The indemnification agreements and our

articles of association require us to indemnify our directors and certain officers and employees as designated by our board of directors to the fullest extent permitted by law.

6. Share-based payments

In the course of its historical financing rounds, InflaRx GmbH established equity-settled share-based payment programs. Under

these programs, the Company granted its managing directors and senior executives options to acquire InflaRx GmbH's common shares. In total, options covering 6,088 common shares have been granted. All of the options have vested. The InflaRx GmbH

options were converted into options covering 511,392 common shares of InflaRx N.V. at the initial public offering in November 2017. The exercise prices for each outstanding award is 0.01 per share or less.

Under the terms and conditions of the 2016 stock option plan (the "2016 Stock Option Plan"), InflaRx GmbH granted rights to

subscribe for InflaRx GmbH's common shares to directors, senior management and key employees. Prior to the initial public offering, the outstanding awards under the 2016 plan covered an aggregate of 1,239,252 common shares and the exercise price

for each outstanding award was 7.81 per share (in each case after giving effect to the corporate reorganization in November 2017). Any additional awards available under the 2016 plan lapsed upon the closing of the Series D financing in October

2017. In 2016, InflaRx also established a share-based payment plan for its non-executive board members and granted options covering 484 shares. Grants under this plan were not subject to service or performance conditions.

In conjunction with the closing of its initial public offering, InflaRx N.V. established a new incentive plan (the "2017

Long-Term Incentive Plan"). The initial maximum number of common shares available for issuance under equity incentive awards granted pursuant to the 2017 Long Term Incentive Plan equals 2,341,097 common shares. The number of share options under the

plan was as follows:

In the fourth quarter of 2018 75,000 stock options were awarded subject to a specified condition, which was satisfied in the

first quarter of 2019. Therefore, the expense for these stock options occurred in 2019.

On January 1, 2021 and on January 1 of each calendar year thereafter, an additional number of shares equal to 3% of the total

outstanding common shares on December 31 of the immediately preceding year (or any lower number of shares as determined by the board of directors) will become available for issuance under equity incentive awards granted pursuant to the 2017

Long-Term Incentive Plan.

In 2018, 302,279 shares were issued following the exercise of stock options, resulting in proceeds to the Company in the amount

of 452.0 thousand. All stock options exercised were granted under the 2016 Stock Option Plan . In the first quarter of 2019, no stock options were exercised.

The fair value of options granted in the three months ended March 31, 2019 under the 2017 Long-Term Incentive Plan was determined

using the Black-Scholes valuation model. Since the Company's common shares are listed on the Nasdaq Global Select Market, the closing price of the common shares at grant date was used. Other significant inputs into the model are as follows

Expected volatility has been based on an evaluation of the historical and implied volatility of a peer group of companies. The

range of outcomes for the expected life of the instruments has been based on expectations on option holder behavior in the scenarios considered.

The dividend yield has no impact due to the anti-dilution clause as defined in the LTI.

Expenses are determined based on the number of stock options granted within a tranche and the vesting period of a tranche.

This implies two effects:

For example, 33.33% of all stock options granted are allocated to the first tranche which vests over 1 year after the grant date,

whereas 8.33% of all stock options granted are allocated to the ninth tranche which vests over three years. Therefore, the expenses recognized from the granted share options under the 2017 Long-Term Incentive plan were 0 in 2016, 0.6 million in

2017, 12.1 million for 2018 and are anticipated to be 5.8 million for 2019, 1.8 million for 2020 and 0.1 million for 2021 (anticipated expenses were converted with the exchange rate as of March 31, 2019, 1 Euro = US dollar 1.13025).

In the three-months period ended March 31, 2019 and 2018, compensation expense was recognized from the following plans:

None of the share-based payments awards were dilutive in determining earnings per share due to the Group's loss position.

7. Protective foundation