INFLARX N.V. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - MARCH 31, 2023 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, 2023

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 Pharmaceuticals 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

for the three months ended March 31, 2023

InflaRx N.V. and subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2023 and 2022

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

InflaRx N.V. and subsidiaries

Condensed Consolidated Statements of Financial Position as of March 31, 2023 and December 31, 2022

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

InflaRx N.V. and subsidiaries

Condensed Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2023 and 2022

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

InflaRx N.V. and subsidiaries

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022

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

InflaRx N.V. and subsidiaries

to the Unaudited Condensed Consolidated Financial Statements

InflaRx 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.

InflaRx is a biopharmaceutical group focused on applying its proprietary anti-C5a and C5aR technologies to discover and develop 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 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; refer to Note 11 for additional information regarding this event.

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").

These interim condensed consolidated financial statements for the three-month reporting periods ended March 31, 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.

The interim condensed consolidated financial statements were authorized for issue by the board of directors of the Company (the "Board of Directors") on May 10, 2023.

The financial statements are presented in Euro ( ). 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. A change in functional currency is accounted for prospectively.

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

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, 2022, except for the adoption of new

standards effective as of January 1, 2023 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 were adopted effective January 1, 2023, 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:

Other income was 7.7 million, which is primarily attributable to income recognized from grant payments received from the German federal government for the development of vilobelimab in

severe COVID-cases, including our expenses related to the clinical development and manufacturing process development.

The net financial result comprises the following items for the three months ended March 31:

Interest income results from marketable securities and short-term deposits 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 and InflaRx N.V..

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, 2023, prepayments on research & development projects amounted to 4.4 million compared to 9.8 million as of December 31, 2022, and consist

of prepayments on clinical and R&D material production contracts.

Amounts in the category "Others" primarily relate to credit notes issued to the Company by CROs.

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, 2023 and December 31, 2022:

As of March 31, 2023, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to 73.6 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, 2023, liabilities from government grants amounted to 1.2 million. Liabilities from government grants partly comprised funds received for advance payments to third

parties. If goods or services from such third parties have not been received, corresponding amounts are not recognized as other income. The Company's right to retain these funds is contingent on meeting all grant conditions.

During the three months ended March 31, 2023, the Company issued no shares under its at-the-market offering program (ATM). Refer to Subsequent events for additional information regarding

issuances under the ATM following March 31, 2023.

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 ordinary shares of InflaRx N.V. in

Under the terms and conditions of the share option plan 2016 InflaRx GmbH granted rights to subscribe for InflaRx GmbH's ordinary shares to directors, senior management, and key

employees. Those InflaRx GmbH options were converted into options for ordinary shares of InflaRx N.V. in November 2017:

The number of share options granted during the three months ended March 31, 2023 under the LTIP was as follows:

Of the 1,506,750 options granted in the three months ended March 31, 2023, 1,223,500 were granted to members of the Executive Management or Board of Directors.

Expected dividends are nil for all share options listed above.

For the three months ended March 31, 2023, the Company has recognized 1.2 million (ended March 31, 2022: 2.5 million) of share-based payment expense/(benefit) in the statements of operations and comprehensive

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

In the three months ended March 31, 2023, 56,304 shares were issued upon the exercise of share options, resulting in proceeds to the Company in the amount of 98 thousand. All of the share options exercised, in the

three months ended March 31 were granted under the 2017 Long-Term Incentive Plan.

According to the Articles of Association of the Company, up to 110,000,000 ordinary shares and up to 110,000,000 preferred shares with a nominal value of 0.12 per share are authorized to be issued. All shares are

registered shares. No share certificates shall be issued.

In order to deter acquisition bids, the Company`s shareholders approved at the general meeting of shareholders the right of an independent foundation under Dutch law, or protective foundation, to exercise a call

option pursuant to the call option agreement, upon which preferred shares will be issued by the Company to the protective foundation of up to 100% of the Company's issued capital held by others than the protective foundation, minus one share. The

protective foundation is expected to enter into a finance arrangement with a bank, or subject to applicable restrictions under Dutch law, the protective foundation may request us to provide, or cause the Company's subsidiaries to provide,

sufficient funding to the protective foundation to enable it to satisfy its payment obligation under the call option agreement.

These preferred shares will have both a liquidation and dividend preference over the Company`s ordinary shares and will accrue cash dividends at a pre-determined rate. The protective foundation would be expected to

require us to cancel its preferred shares once the perceived threat to the Company and its stakeholders has been removed or sufficiently mitigated or neutralized. We believe that the call option does not represent a significant fair value based on

a Level 3 valuation, since the preference shares are restricted in use and can be canceled by us.

In the three months ended March 31, 2023, the Company expensed 15 thousand (2022: 15 thousand) of ongoing costs to reimburse expenses incurred by the protective foundation.

Emergency Use Authorization (EUA)

On April 4, 2023, the FDA issued an 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 when

initiated within 48 hours of receiving invasive mechanical ventilation (IMV) or extracorporeal membrane oxygenation (ECMO).

Gohibic (vilobelimab) has not been FDA-approved for any indication, including for the treatment of COVID-19, but has been authorized for emergency use by FDA.

The emergency use of Gohibic is only authorized for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of drugs and biological products during the COVID-19