INFLARX N.V. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - SEPTEMBER 30, 2023 These unaudited condensed financial statements are consolidated financial statements for the group consisting of InflaRx N.V. and it

UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS - SEPTEMBER 30, 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 euros ( ).

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 and nine months ended September 30, 2023

InflaRx N.V. and subsidiaries

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2023

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 September 30, 2023 and December 31, 2022

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 nine months ended September 30, 2023 and 2022

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 nine months ended September 30, 2023 and 2022

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. (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 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 and its receptor C5aR. On April 4, 2023, the U.S. Food and Drug Administration issued an Emergency Use Authorization (EUA) for Gohibic (vilobelimab), for the treatment of COVID-19 in critically ill, invasively

mechanically ventilated 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").

These interim condensed consolidated financial statements for the three- and nine-month reporting periods ended September 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 the Company's

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 October 31, 2023.

The 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.

All 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

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

Accounting policies for the following IFRS standards have been applied starting in Q2 2023 for the first time, as no transactions in the scope of these IFRS standards had been previously recognized.

According to IAS 2, inventories are stated at the lower amount of their cost or at their net realizable value. Cost comprises direct materials and, where applicable, direct labor costs and those overhead costs 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. Recognizing inventories at net realizable value includes write down of inventories expected to be unsellable, not meeting quality

standards or at-risk of shelf-life expiry prior to sale.

At present, the Company exclusively uses distributors to sell its product to end customers (e.g., hospitals). The end customers (e.g. hospitals) have been determined to be the customer in these sales arrangements.

Revenue is therefore recognized when a performance obligation has been satisfied through the transfer of a promised good or service to a customer, that is, when the customer obtains control of that asset and is measured considering estimated return

liabilities and expected rebates or cash discounts. 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:

In June 2023, the Group began the commercialization of Gohibic (vilobelimab) in the United States. In connection with the start of the commercialization, the Group entered into agreements with certain subsidiaries

of Cencora Inc. (formerly known as AmerisourceBergen Corp.) to act as the Group's U.S. distributor and make Gohibic (vilobelimab) available for order by U.S. hospital customers. Cencora provides cold

storage, cold-chain distribution services, inventory management and secondary labeling/packaging, among other services.

In Q3 2023, the Company realized revenues from the product sales for the first time since its inception. Revenues reported are sales to end customers (hospitals). Sales to distributors do not constitute revenue for

the Company under IFRS 15.

Cost of sales recognized during the three and nine months ended September 30, 2023, are related to Gohibic (vilobelimab) revenues in the United States. Costs of sales for products sold in these periods do not

include costs of materials, as the associated costs of these materials were incurred in prior periods, before granting of an EUA for Gohibic (vilobelimab). These materials were recorded as research and development expenses in the period they were

The cost of sales during the three and nine month ended September 30, 2023 mainly consists of write-downs of inventories that will expire prior to their expected sale. Early product batches capitalized in inventory

were produced with material which had been manufactured in previous years.

Other income for the three months ended September 30, 2023 amounted to 0.8 million (PY: 2.0 million) and for the nine months ended September 30, 2023 amounted to 13.4 million (PY: 16.5 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 the end of the grant period on June 30, 2023.

Net financial result increased by 3.0 million to a gain of 3.7 million for the three months ended September 30, 2023 from 0.7 million for the three months ended September 30, 2022. This increase is mainly

attributable to an increase of interest income on marketable securities by 1.0 and an increase of foreign exchange gains of 2.4 million. Other financial result consists of an adjustment for expected credit losses on marketable securities.

Net financial result increased by 1.8 million to 4.9 million for the nine months ended September 30, 2023, from 3.1 million for the nine months ended September 30, 2022. This increase was mainly attributable to

higher interest income which increased by 2.4 million, partly compensated by the decrease in foreign exchange result of 1.2 million.

The Company initially valued inventories at manufacturing cost in its consolidated statement of financial position. The manufacturing cost for the initial commercial product batches do not include costs relating to

production of active ingredient or formulated product before the granting of an EUA for Gohibic (vilobelimab), since those were expensed in previous reporting periods as research and development expenses in the period incurred.

Subsequent measurement of inventories reflect their realizable value. In the three and nine months ended September 30, 2023, inventory write-downs of 0.3 million were recognized due to the expected expiry of their

shelf-life and are included in cost of sales.

As of September 30, 2023, prepayments on research & development projects amounted to 3.4 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 nine months ended September 30, 2023.

As of September 30, 2023, prepayments on commercial production amounted to 3.6 million and consist of prepayments to our Contract Manufacturing Organization for the manufacturing of additional commercial material.

These prepayments are not refundable.

Prepaid expenses mainly consist of prepaid clinical trial and transportation insurance expense.

The reduction of the amounts in the category "others" primarily relate to credit notes issued by contract research organizations to the Company, which were outstanding as of December 31, 2022 and received in 2023.

Set out below is an overview of financial assets and liabilities, other than cash and cash equivalents, held by the Group as of September 30, 2023 and December 31, 2022:

As of September 30, 2023, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to 91.5 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 September 30, 2023, financial assets from government grants amounted to 1.2 million. The grant period expired on June 30, 2023. The amount of 1.2 million represents the Company's current judgement before

reconciliation of remaining activities and outstanding payments. The amount is expected to be received before the end of the year 2023 as a final payment to the Company once all residual activities under the grant have been completed, all our

reporting obligations including reports to government agencies have been submitted and all formal aspects for the completion of the grant are fulfilled.

As of September 30, 2023, due to the expiration of the grant period, there were no liabilities from government grants.

In September 2023, the Company received 2.9 million for Gohibic (vilobelimab) product shipments from a subsidiary of Cencora which acts as a U.S. distributor for the company. The majority of this product will

remain in stock at the distributor awaiting sale to customers. In accordance with IFRS 15, InflaRx recognizes revenue when control of the products is transferred to the end customer (hospital). Therefore, InflaRx recognized a liability in

liabilities from commercial partners in the amount of 2.9 million. For each unit sold to the end customer, this liability is reduced with a corresponding amount recognized in revenue.

In April 2023, the Company issued 3,235,723 ordinary shares under its at-the-market (ATM) program resulting in $15.7 million (or 14.4 million) in net proceeds. The ATM program expired in July 2023 and no more

shares are issuable under this program.

Through an underwritten public offering in April 2023, the Company sold and issued an aggregate of 10,823,529 ordinary shares, of which 1,411,764 were sold pursuant to the exercise of an overallotment option by the