INFLARX N.V. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - MARCH 31, 2022 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, 2022

These 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 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.

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2022

InflaRx N.V. and subsidiaries

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2022 and 2021

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, 2022 and December 31, 2021

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, 2022 and 2021

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, 2022 and 2021

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

InflaRx N.V. 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 common shares have been listed on

The NASDAQ Global Select Market under the symbol IFRX.

InflaRx is a clinical-stage biopharmaceutical Group focused on applying its proprietary anti-C5a technology to discover and develop first-in-class, potent and specific inhibitors of the complement activation factor

These consolidated financial statements of InflaRx comprise the Company and its wholly-owned subsidiaries InflaRx GmbH, Jena, Germany and InflaRx Pharmaceutical Inc., Ann Arbor, Michigan, United States (together

referred to as "the Group").

InflaRx GmbH was founded in 2008. In 2017, InflaRx N.V. became the sole shareholder of InflaRx GmbH through the contribution of the subsidiary's shares to InflaRx N.V. by its existing shareholders in exchange of new

shares issued by InflaRx N.V.

These interim condensed consolidated financial statements for the three-month reporting periods ended March 31, 2022, and 2021 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, 2021 on Form 20-F.

The interim condensed consolidated financial statements were authorized for issue by the board of directors on May 11, 2022.

The financial statements are presented in Euro ( ). Euro is the functional currency of InflaRx GmbH. The functional currency of InflaRx N.V. and InflaRx Pharmaceutical Inc. is U.S. Dollars. All financial information

presented in Euro has 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.

The 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, 2021, except for the adoption of new

standards effective as of January 1, 2022 as set out below. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The following amendments have been adopted effective January 1, 2022 and do not have a material impact on the consolidated financial statements of the Group:

The 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:

Russian-Ukraine Conflict

The conflict between Russia and Ukraine has resulted, and is expected to further result, in significant disruption, instability and volatility in global markets, as well as higher energy and other commodity prices.

However, since the company is not currently conducting any business or receiving any services from vendors located in these countries, it does not think that the ongoing war will have a direct impact on its operation in the near term. The Company

may be affected by certain policy changes in Germany where the Company is headquartered, although at this point, it does not foresee any such policy changes that might have a direct impact on its business operations.

The COVID-19 pandemic continues to impact our operations as many governments continue to maintain measures to slow the spread of the outbreak through quarantines, travel restrictions, closure of borders and requiring

maintenance of social distancing measures .

During the first quarter of 2022, the Company has continued to use a hybrid working model that supports a blend of in-office and remote employees, depending on their role and location. Our service providers have

continued at regular operational levels, and the recruitment of patients and new clinical trial sites also continued in the first quarter of 2022 through the date of issuance of these interim financial statements. Business travel, however, has been

significantly reduced and widely replace by other means of communication, e.g. through video-conferencing.

Development programs

On January 10, 2022, the Company reported that it has been granted a composition of matter patent for INF904 and associated compounds by the U.S. Patent and Trademark Office and that it has completed IND-enabling

(preclinical) studies that demonstrated no obvious toxicological findings even in the highest dose groups in required GLP toxicity analyses. In these preclinical studies, oral INF904 showed higher plasma exposure in animals, including non-human

primates, and improved inhibitory activity in a hamster neutropenia model compared to the marketed C5aR inhibitor. Anti-inflammatory therapeutic effects in several preclinical disease models were also demonstrated by INF904. Further, in contrast to

the marketed C5aR inhibitor, in vitro experiments showed INF904 has substantially less inhibition of the cytochrome P450 3A4/5 (CYP3A4/5) enzymes, which play an important role in the metabolism of a variety of drugs, including glucocorticoids. The

Company expects to initiate a Phase I program in the second half of 2022 and plans to study INF904 in complement-mediated, chronic autoimmune and inflammatory diseases where oral administration is the preferred choice for patients.

On February 16, 2022, the Company reported that in the combination Arm B of its ongoing clinical Phase II study of vilobelimab in cSCC, three patients have been treated for at least 36 days in the first dosing cohort

of the study, receiving intravenous infusions of 400 mg of vilobelimab on Days 1, 4, 8, and 15 and from Day 22 onwards, 800 mg every two weeks. Patients are also receiving 400 mg of pembrolizumab starting on Day 8 of the first cycle and every six

weeks thereafter. The data from the first 36 days of treatment have been reviewed by an independent Steering Committee and no safety concerns were raised. The Steering Committee recommended to continue the study as planned and to open enrollment

for the second dosing cohort with 1200 mg vilobelimab every two weeks after administration of 600 mg vilobelimab on Days 1,4, 8 and 15. The interim analysis in Arm B which is required to move to the second stage of the Phase II trial, is expected

after ten patients have been treated and are evaluable for response assessment at the recommended Phase II dose level, which will be selected based on data from the safety run-in phase of the study. In parallel, enrollment continues in the

monotherapy Arm A. Eight patients are now enrolled in this arm. In this arm, patients are receiving a dose of 800 mg vilobelimab on Days 1, 4, 8, and 15 of the first cycle, followed by a dose of 1600 mg vilobelimab every two weeks starting on Day

22. The interim analysis in Arm A required to proceed to the second stage is expected to be available after ten patients are evaluable for response assessment.

Final data of the Phase IIa study of vilobelimab in PG were presented at the 2022 American Academy of Dermatology Association (AAD) Annual Meeting on March 26, 2022. With these results, an end-of-Phase II meeting has

been scheduled with the FDA for mid-2022 to discuss the pivotal program in this indication.

On March 31, 2022, the Company announced Phase III top-line results from the PANAMO study of vilobelimab in patients with severe COVID-19 disease. Vilobelimab treatment results in relative reduction in 28-day all-cause

mortality of 23.9% compared to placebo, but did not show statistical significance on the pre-specified primary endpoint. The Company is engaged in ongoing discussions with regulatory authorities to determine next steps towards a potential approval

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

Interest income results from marketable securities and short-term deposits in U.S. Dollars 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, cash equivalents and securities held by InflaRx GmbH.

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

Prepaid expense mainly consists of prepaid insurance expense.

As of March 31, 2022, prepayments on research & development projects amount to 10.6 million compared to 10.6 million as of December 31, 2021, and consist of prepayments on clinical and R&D material production

Set out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of March 31, 2022 and December 31, 2021:

As of March 31, 2022, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to 58.5 million (Level 1). The Group's debt instruments at amortized cost consist solely of

quoted securities that are graded highly by credit rating agencies such as S&P Global and, therefore, are considered low credit risk investments.

As of March 31, 2022, we have received 8.3 million in cash from the German Federal Government grant, which is presented in "Liabilities from government grants received"; our right to retain these funds is contingent on meeting all

On July 8, 2020, the Company filed a Form F-3 (Registration Statement) with the United States Securities and Exchange Commission (SEC) with respect to the offer and sale of securities of the Company. The Company also

filed with the SEC a prospectus supplement (Prospectus Supplement) relating to an at-the-market program providing for the sale of up to $50.0 million of its common shares over time pursuant to a Sales Agreement with SVB Leerink LLC. The remaining

value authorized for sale under the Sales Agreement amounts to $35.2 million.

On February 25, 2021, the Company sold an aggregate of 15,000,000 common shares through a public offering. The common shares were sold at a price of $5.00 per share and have a nominal value of 0.12 per share. For each

common share purchased, an investor also received a warrant to purchase a common share at an exercise price of $5.80. The warrants are exercisable immediately and have a term of up to one year. The shares and warrants were issued and the

transaction closed on March 1, 2021 with gross offering proceeds to the Group from this offering being $75.0 million ( 62.2 million), before deducting $4.5 million ( 3.7 million) in underwriting discounts and other offering expenses of $0.4 million

( 0.3 million). The warrants were exercisable immediately and expired on March 1, 2022. No warrants were exercised.

During its historical financing rounds prior to 2016 InflaRx GmbH granted options under the 2012 Stock Option Plan. Those InflaRx GmbH options were converted into options for common shares of InflaRx N.V. in November

Under the terms and conditions of the share option plan 2016 InflaRx GmbH granted rights to subscribe for InflaRx GmbH's common shares to directors, senior management, and key employees. Those InflaRx GmbH options were

converted into options for common shares of InflaRx N.V. in November 2017:

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