InflaRx (IFRX) 6-K 10 Aug 23 Report of Foreign Private Issuer Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Jun. 30, 2023
Document Information Line Items
Entity Registrant Name	InflaRx N.V.
Document Type	6-K
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001708688
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Address, Address Line One	Winzerlaer Str. 2
Entity Address, Postal Zip Code	07745
Entity Address, City or Town	Jena
Entity Address, Country	DE

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - EUR (€)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Unaudited Condensed Consolidated Statements Of Operations And Comprehensive Loss Abstract
Research and development expenses	€ (10,919,595)	€ (11,180,958)	€ (25,651,503)	€ (21,652,881)
General and administrative expenses	(3,540,805)	(4,346,965)	(7,149,359)	(8,734,408)
Sales and marketing expenses	(276,051)		(276,051)
Other income	4,882,908	14,441,541	12,629,096	14,443,135
Other expenses	(2,624)	(279)	(3,190)	(844)
Operating Result	(9,856,168)	(1,086,661)	(20,451,007)	(15,944,999)
Finance income	1,087,011	82,401	1,543,047	110,362
Finance expenses	(5,052)	(7,945)	(10,580)	(32,531)
Foreign exchange result	767,646	1,563,580	(369,664)	2,291,513
Other financial result	(195,567)	(86,000)	2,241	39,000
Income Taxes
Income (Loss) for the Period	€ (8,202,130)	€ 465,376	€ (19,285,963)	€ (13,536,654)
Share Information
Weighted average number of shares outstanding (in Shares)	56,985,734	44,203,763	50,912,459	44,203,763
Income (Loss) per share (basic) (in Euro per share)	€ (0.14)	€ 0.01	€ (0.38)	€ (0.31)
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign currency	€ (330)	€ 4,408,940	€ (17,116)	€ 5,718,815
Total Comprehensive Income (Loss)	€ (8,202,460)	€ 4,874,316	€ (19,303,079)	€ (7,817,839)

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) - € / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Unaudited Condensed Consolidated Statements Of Operations And Comprehensive Loss Abstract
Income (Loss) per share (diluted)	€ (0.14)	€ 0.01	€ (0.38)	€ (0.31)

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Financial Position - EUR (€)	Jun. 30, 2023	Dec. 31, 2022
Non-current assets
Property and equipment	€ 296,382	€ 328,920
Right-of-use assets	1,122,183	1,311,809
Intangible assets	90,789	138,905
Other assets	283,784	308,066
Financial assets	18,951,267	2,900,902
Total non-current assets	20,744,405	4,988,602
Current assets
Inventories	578,705
Current other assets	6,405,867	14,170,510
Current tax assets	2,925,037	1,432,087
Financial assets from government grants	5,193,246	732,971
Other financial assets	77,601,286	64,810,135
Cash and cash equivalents	19,515,959	16,265,355
Total current assets	112,220,100	97,411,058
TOTAL ASSETS	132,964,505	102,399,660
Equity
Issued capital	7,065,993	5,364,452
Share premium	334,211,338	282,552,633
Other capital reserves	38,874,961	36,635,564
Accumulated deficit	(262,746,253)	(243,460,290)
Other components of equity	7,239,965	7,257,081
Total equity	124,646,004	88,349,440
Non-current liabilities
Lease liabilities	814,560	987,307
Other liabilities	36,877	36,877
Total non-current liabilities	851,437	1,024,184
Current liabilities
Trade and other payables	5,200,809	4,987,538
Liabilities from government grants	801,632	6,209,266
Lease liabilities	356,099	369,376
Employee benefits	900,474	1,312,248
Other liabilities	208,051	147,608
Total current liabilities	7,467,065	13,026,036
Total Liabilities	8,318,502	14,050,220
TOTAL EQUITY AND LIABILITIES	€ 132,964,505	€ 102,399,660

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Equity - EUR (€)		Shares outstanding	Issued capital	Share premium	Other capital reserves	Accumulated deficit	Other components of equity	Total
Balance at Dec. 31, 2021			€ 5,304,452	€ 280,310,744	€ 30,591,209	€ (213,975,679)	€ 3,050,271	€ 105,280,996
Balance (in Shares) at Dec. 31, 2021		44,203,763
Loss for the period						(13,536,654)		(13,536,654)
Exchange differences on translation of foreign currency							5,718,815	5,718,815
Total comprehensive loss						(13,536,654)	5,718,815	(7,817,839)
Equity-settled share-based payments					4,668,481			4,668,481
Balance at Jun. 30, 2022	[1]		5,304,452	280,310,744	35,259,689	(227,512,333)	8,769,086	102,131,638
Balance (in Shares) at Jun. 30, 2022	[1]	44,203,763
Balance at Dec. 31, 2022			5,364,452	282,552,633	36,635,564	(243,460,290)	7,257,081	88,349,440
Balance (in Shares) at Dec. 31, 2022		44,703,763
Loss for the period						(19,285,963)		(19,285,963)
Exchange differences on translation of foreign currency							(17,116)	(17,116)
Total comprehensive loss						(19,285,963)	(17,116)	(19,303,079)
Issuance of common shares			1,687,110	54,796,819				56,483,929
Issuance of common shares (in Shares)		14,059,252
Transaction costs				(3,360,626)				(3,360,626)
Equity-settled share-based payments					2,239,397			2,239,397
Share options exercised			14,431	222,512				236,943
Share options exercised (in Shares)		120,257
Balance at Jun. 30, 2023	[1]		€ 7,065,993	€ 334,211,338	€ 38,874,961	€ (262,746,253)	€ 7,239,965	€ 124,646,004
Balance (in Shares) at Jun. 30, 2023	[1]	58,883,272
[1] unaudited

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Cash Flows - EUR (€)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Loss for the period	€ (19,285,963)	€ (13,536,654)
Adjustments for:
Depreciation & amortization of property and equipment, right-of-use assets and intangible assets	293,328	300,870
Net finance income	(1,165,044)	(2,408,345)
Share-based payment expense	2,239,397	4,668,481
Net foreign exchange differences	(23,953)	130,347
Changes in:
Financial assets from government grants	(4,460,274)	(8,260,503)
Other assets	6,295,975	611,843
Employee benefits	(411,774)	(640,112)
Other liabilities	60,443	(7,869)
Liabilities from government grants received	(5,407,634)	(6,154,865)
Trade and other payables	213,270	(661,741)
Inventories	(578,705)
Interest received	556,068	631,504
Interest paid	(10,777)	(32,039)
Net cash used in operating activities	(21,685,642)	(25,359,081)
Investing activities
Purchase of intangible assets, property and equipment	(24,673)	(9,728)
Purchase of current financial assets	(83,071,163)	(47,031,216)
Proceeds from the maturity of financial assets	55,202,491	59,595,044
Net cash from/(used in) investing activities	(27,893,346)	12,554,101
Financing activities
Proceeds from issuance of common shares	56,483,929
Transaction costs from issuance of common shares	(3,360,626)
Proceeds from exercise of share options	236,943
Repayment of lease liabilities	(184,791)	(182,014)
Net cash from/(used in) financing activities	53,175,455	(182,014)
Net increase/(decrease) in cash and cash equivalents	3,596,467	(12,986,995)
Effect of exchange rate changes on cash and cash equivalents	(345,862)	2,153,152
Cash and cash equivalents at beginning of period	16,265,355	26,249,995
Cash and cash equivalents at end of period	€ 19,515,959	€ 15,416,152

Summary of Significant Accounti

Summary of Significant Accounting Policies and Other Disclosures	6 Months Ended
	Jun. 30, 2023
Summary of Significant Accounting Policies and Other Disclosures
Summary of significant accounting policies and other disclosures	1. Summary of significant accounting policies and other disclosures a) Reporting entity and the Group’s structure InflaRx N.V. (the “Company” or “InflaRx”) is a Dutch public company with limited liability ( naamloze vennootschap 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. 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”). b) Basis of preparation These 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. The 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. 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 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, 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. The 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. ● IAS 2 Inventories According 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. ● IFRS 15 Revenue from contracts with customers Revenue 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 recognized. The following amendments were adopted effective January 1, 2023, and do not have a material impact on the consolidated financial statements of the Group: ● IFRS 17 Insurance Contracts ● Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates ● Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies - 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: ● Amendments to IFRS 16 Leases: Leases on Sale and Leaseback ● Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants

Other Income

Other Income	6 Months Ended
	Jun. 30, 2023
Other Income
Other income	2. Other income For the three months ended June 30, For the six months 2023 2022 2023 2022 (in €) Other income Income from government grants 4,874,934 14,415,368 12,609,789 14,415,368 Other 7,974 26,173 19,307 27,767 Total 4,882,908 14,441,541 12,629,096 14,443,135 Other 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

Net Financial Result	6 Months Ended
	Jun. 30, 2023
Net Financial Result
Net financial result	3. Net financial result The net financial result comprises the following items for the three- and six-months ended June 30, 2023 and 2022, respectively: For the three months For the six months 2023 2022 2023 2022 (in €) Financial income Interest income 1,087,011 82,401 1,543,047 110,362 Financial expenses Interest expenses (363 ) (2,243 ) (782 ) (22,102 ) Interest on lease liabilities (4,689 ) (5,702 ) (9,798 ) (10,429 ) Total 1,081,959 74,456 1,532,467 77,831 Interest income is derived from marketable securities and short-term deposits held by the Company and its subsidiary InflaRx GmbH: For the three months For the six months 2023 2022 2023 2022 (in €) Foreign exchange result Foreign exchange income 2,090,994 2,947,221 2,381,519 4,057,629 Foreign exchange expense (1,323,348 ) (1,383,641 ) (2,751,183 ) (1,766,116 ) Total 767,646 1,563,580 (369,664 ) 2,291,513 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. For the three months For the six months 2023 2022 2023 2022 (in €) Other financial result (195,567 ) (86,000 ) 2,241 39,000 Other financial result is attributable to the expected credit loss allowance, which is deducted from the Company’s current and non-current financial assets.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2023
Inventories
Inventories	4. Inventories As of As of (in €) Raw materials and supplies 337,407 — Unfinished goods 132,624 — Finished goods 108,674 — Total 578,705 — The 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. During the three and the six months ended June 30, 2023, there were no write-downs of inventories.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2023
Other Assets
Other assets	5. Other assets As of As of (in €) Non-current other assets Prepaid expenses 283,784 308,066 Total 283,784 308,066 Current other assets Prepayments on research & development projects 4,757,771 9,776,505 Prepaid expense 1,146,674 1,841,935 Others 501,422 2,552,071 Total 6,405,867 14,170,511 Total other assets 6,689,651 14,478,577 As 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. Prepaid expenses mainly consist of prepaid insurance expense. The 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.

Financial Assets and Financial

Financial Assets and Financial Liabilities	6 Months Ended
	Jun. 30, 2023
Financial Assets and Financial Liabilities
Financial assets and financial liabilities	6. Financial assets and financial liabilities Set 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: As of As of (in €) Financial assets at amortized cost Non-current financial assets 18,951,267 2,900,902 Financial assets from government grants 5,193,245 732,971 Other current financial assets 77,601,286 64,791,088 Financial liabilities at amortized cost Liabilities from government grants 801,632 6,209,266 Trade and other payables 5,200,809 4,987,538 As of June 30, 2023, the fair value of current and non-current financial assets (primarily quoted debt securities) amounted to €100.7 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 June 30, 2023, liabilities from government grants amounted to €0.8 million. Liabilities from government grants partly comprise 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.

Cash and Cash Equivalents

Cash and Cash Equivalents	6 Months Ended
	Jun. 30, 2023
Cash and cash equivalents
Cash and cash equivalents	7. Cash and cash equivalents As of As of (in €) Short-term deposits Deposits held in U.S. dollars 7,825,926 3,422 Deposits held in euros 6,100,000 — Total 13,925,926 3,422 Cash at banks Cash held in U.S. dollars 3,340,889 8,645,014 Cash held in euros 2,249,144 7,616,918 Total 5,590,033 16,261,932 Total cash and cash equivalents 19,515,959 16,265,354

Equity

Equity	6 Months Ended
	Jun. 30, 2023
Equity
Equity	8. Equity In April 2023, the Company issued 3,235,723 ordinary shares under its ATM program resulting in $15.7 million (or €14.4 million) in net proceeds. The existing 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 underwriters. The ordinary shares were sold at a price of $4.25 per share and have a nominal value of €0.12 per share. Proceeds of this offering after deducting €2.5 million ($2.8 million) in underwriting discounts amounted to €39.1 million ($43.2 million). Other offering expenses amounted to €0.4 million, resulting in a total of €38.7 million in net proceeds from this offering.

Share-Based Payments

Share-Based Payments	6 Months Ended
	Jun. 30, 2023
Share-Based Payments
Share-based payments	9. Share-based payments a) Equity settled share-based payment arrangements 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. at the time of its IPO in November 2017: Number of share options 2023 2022 Outstanding as of January 1, 148,433 148,433 Exercised during the six months ended June 30 — — Outstanding as of June 30, 148,433 148,433 thereof vested 148,433 148,433 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. at the time of its IPO in November 2017: Number of share options 2023 2022 Outstanding as of January 1, 888,632 888,632 Exercised during the six months ended June 30 — — Outstanding as of June 30, 888,632 888,632 thereof vested 888,632 888,632 InflaRx also granted share options under the 2017 LTIP subsequently to its IPO in November 2017. The total number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows: Number of share options 2023 2022 Total number of options outstanding as of January 1, 4,985,523 3,170,046 Granted during the six months ended June 30, 1,567,250 1,561,666 Exercised during the six months ended June 30, 105,327 — Forfeited during the six months ended June 30, — (117,259 ) Outstanding as of June 30, 6,447,446 4,614,453 thereof vested 4,788,759 3,306,162 The number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows: Share options granted 2023 Number Fair value per option FX rate as of grant date Fair value per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) January 24 1,454,250 $ 2.11 0.9008 € 1.90 $ 2.37 1.35 5.30 3.571 % January 24 52,500 $ 2.13 0.9008 € 1.92 $ 2.37 1.35 5.50 3.565 % May 31 60,500 $ 3,61 0.9203 € 3.32 $ 4.19 1.35 4.50 3.820 % 1,567,250 Of the 1,567,250 options granted in the six months ended June 30, 2023 (ended June 30, 2022: 1,561,666), 1,246,000 options (June 30, 2022: 1,362,500) were granted to members of the executive management or Board of Directors. Expected dividends are nil for all share options listed above. b) Share-based payment expense recognized For the six months ended June 30, 2023, the Company has recognized €2.2 million (ended June 30, 2022: €4.7 million) of share-based payment expense/(benefit) in the statements of operations and comprehensive loss. None of the share-based payment awards were dilutive in determining earnings per share due to the Group’s loss position. c) Share options exercised During the six months ended June 30, 2023, 105,327 shares (ended June 30, 2022: 0) were issued upon the exercise of share options, resulting in proceeds to the Company in the amount of €98 thousand (ended June 30, 2022: 0). All share options exercised during the six months ended June 30, 2023 were granted under the 2017 LTIP.

Protective Foundation

Protective Foundation	6 Months Ended
	Jun. 30, 2023
Protective Foundation
Protective foundation	10. Protective foundation 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 the right of an independent foundation under Dutch law, or protective foundation, to exercise a call option on preferred shares. Pursuant to the call option agreement, the Company shall issue an amount of preferred shares to the protective foundation, amounting to up to 100% of the Company’s issued capital held by others than the protective foundation, minus one share. In order to exercise its right to such share issue, 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 the Company 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. During the six months ended June 30, 2023, the Company expensed €45 thousand (2022: €30 thousand) of ongoing costs to reimburse expenses incurred by the protective foundation.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2023
Subsequent Events
Subsequent events	11. Subsequent events Effective July 1, 2023, Dr. Camilla Chong was appointed the Company’s Chief Medical Officer.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Reporting entity and the Group’s structure	a) Reporting entity and the Group’s structure InflaRx N.V. (the “Company” or “InflaRx”) is a Dutch public company with limited liability ( naamloze vennootschap 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. 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”).
Basis of preparation	b) Basis of preparation These 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. The 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. 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 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, 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. The 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. ● IAS 2 Inventories According 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. ● IFRS 15 Revenue from contracts with customers Revenue 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 recognized. The following amendments were adopted effective January 1, 2023, and do not have a material impact on the consolidated financial statements of the Group: ● IFRS 17 Insurance Contracts ● Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates ● Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction ● Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies - 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: ● Amendments to IFRS 16 Leases: Leases on Sale and Leaseback ● Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants

Other Income (Tables)

Other Income (Tables)	6 Months Ended
	Jun. 30, 2023
Other income [Abstract]
Schedule of Other Income	Other income For the three months ended June 30, For the six months 2023 2022 2023 2022 (in €) Other income Income from government grants 4,874,934 14,415,368 12,609,789 14,415,368 Other 7,974 26,173 19,307 27,767 Total 4,882,908 14,441,541 12,629,096 14,443,135

Net Financial Result (Tables)

Net Financial Result (Tables)	6 Months Ended
	Jun. 30, 2023
Net Financial Result
Schedule of Net financial result	The net financial result comprises the following items for the three- and six-months ended June 30, 2023 and 2022, respectively: For the three months For the six months 2023 2022 2023 2022 (in €) Financial income Interest income 1,087,011 82,401 1,543,047 110,362 Financial expenses Interest expenses (363 ) (2,243 ) (782 ) (22,102 ) Interest on lease liabilities (4,689 ) (5,702 ) (9,798 ) (10,429 ) Total 1,081,959 74,456 1,532,467 77,831
Schedule of Interest Income is Derived from Marketable Securities and Short-Term Deposits	Interest income is derived from marketable securities and short-term deposits held by the Company and its subsidiary InflaRx GmbH: For the three months For the six months 2023 2022 2023 2022 (in €) Foreign exchange result Foreign exchange income 2,090,994 2,947,221 2,381,519 4,057,629 Foreign exchange expense (1,323,348 ) (1,383,641 ) (2,751,183 ) (1,766,116 ) Total 767,646 1,563,580 (369,664 ) 2,291,513
Schedule of Foreign Exchange Income and Expense	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. For the three months For the six months 2023 2022 2023 2022 (in €) Other financial result (195,567 ) (86,000 ) 2,241 39,000

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2023
Inventories
Schedule Inventories	Inventories As of As of (in €) Raw materials and supplies 337,407 — Unfinished goods 132,624 — Finished goods 108,674 — Total 578,705 —

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Other Assets
Schedule Other Assets	Other assets As of As of (in €) Non-current other assets Prepaid expenses 283,784 308,066 Total 283,784 308,066 Current other assets Prepayments on research & development projects 4,757,771 9,776,505 Prepaid expense 1,146,674 1,841,935 Others 501,422 2,552,071 Total 6,405,867 14,170,511 Total other assets 6,689,651 14,478,577

Financial Assets and Financia_2

Financial Assets and Financial Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Financial Assets and Financial Liabilities
Schedule of Financial Assets and liabilities	Set 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: As of As of (in €) Financial assets at amortized cost Non-current financial assets 18,951,267 2,900,902 Financial assets from government grants 5,193,245 732,971 Other current financial assets 77,601,286 64,791,088 Financial liabilities at amortized cost Liabilities from government grants 801,632 6,209,266 Trade and other payables 5,200,809 4,987,538

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	6 Months Ended
	Jun. 30, 2023
Cash and cash equivalents
Schedule of Cash and Cash Equivalents	As of As of (in €) Short-term deposits Deposits held in U.S. dollars 7,825,926 3,422 Deposits held in euros 6,100,000 — Total 13,925,926 3,422 Cash at banks Cash held in U.S. dollars 3,340,889 8,645,014 Cash held in euros 2,249,144 7,616,918 Total 5,590,033 16,261,932 Total cash and cash equivalents 19,515,959 16,265,354

Share-Based Payments (Tables)

Share-Based Payments (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payments
Schedule of Stock Option Activity	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. at the time of its IPO in November 2017 Number of share options 2023 2022 Outstanding as of January 1, 148,433 148,433 Exercised during the six months ended June 30 — — Outstanding as of June 30, 148,433 148,433 thereof vested 148,433 148,433 Number of share options 2023 2022 Outstanding as of January 1, 888,632 888,632 Exercised during the six months ended June 30 — — Outstanding as of June 30, 888,632 888,632 thereof vested 888,632 888,632 Number of share options 2023 2022 Total number of options outstanding as of January 1, 4,985,523 3,170,046 Granted during the six months ended June 30, 1,567,250 1,561,666 Exercised during the six months ended June 30, 105,327 — Forfeited during the six months ended June 30, — (117,259 ) Outstanding as of June 30, 6,447,446 4,614,453 thereof vested 4,788,759 3,306,162
Schedule of Fair Value of Options Granted	The number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows Share options granted 2023 Number Fair value per option FX rate as of grant date Fair value per option Share price at grant date / Exercise price Expected volatility Expected life (midpoint based) Risk-free rate (interpolated, U.S. sovereign strips curve) January 24 1,454,250 $ 2.11 0.9008 € 1.90 $ 2.37 1.35 5.30 3.571 % January 24 52,500 $ 2.13 0.9008 € 1.92 $ 2.37 1.35 5.50 3.565 % May 31 60,500 $ 3,61 0.9203 € 3.32 $ 4.19 1.35 4.50 3.820 % 1,567,250

Other Income (Details)

Other Income (Details) - EUR (€) € in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other Income
Other income	€ 4.9	€ 14.4	€ 12.6	€ 14.4

Other Income (Details) - Schedu

Other Income (Details) - Schedule of Other Income - EUR (€)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Other income
Income from government grants	€ 4,874,934	€ 14,415,368	€ 12,609,789	€ 14,415,368
Other	7,974	26,173	19,307	27,767
Total	€ 4,882,908	€ 14,441,541	€ 12,629,096	€ 14,443,135

Net Financial Result (Details)

Net Financial Result (Details) - Schedule of Net Financial Result - EUR (€)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financial income
Interest income	€ 1,087,011	€ 82,401	€ 1,543,047	€ 110,362
Financial expenses
Interest expenses	(363)	(2,243)	(782)	(22,102)
Interest on lease liabilities	(4,689)	(5,702)	(9,798)	(10,429)
Total	€ 1,081,959	€ 74,456	€ 1,532,467	€ 77,831

Net Financial Result (Details_2

Net Financial Result (Details) - Schedule of Interest Income is Derived from Marketable Securities and Short-Term Deposits - EUR (€)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign exchange result
Foreign exchange income	€ 2,090,994	€ 2,947,221	€ 2,381,519	€ 4,057,629
Foreign exchange expense	(1,323,348)	(1,383,641)	(2,751,183)	(1,766,116)
Total	€ 767,646	€ 1,563,580	€ (369,664)	€ 2,291,513

Net Financial Result (Details_3

Net Financial Result (Details) - Schedule of Foreign Exchange Income and Expense - EUR (€)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net Financial Result [Abstract]
Other financial result	€ (195,567)	€ (86,000)	€ 2,241	€ 39,000

Inventories (Details)

Inventories (Details) - EUR (€)	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023
Inventories
Write-downs of inventories	€ 0	€ 0

Inventories (Details) - Schedul

Inventories (Details) - Schedule Inventories - EUR (€)	Jun. 30, 2023	Dec. 31, 2022
Schedule of Inventories [Abstract]
Raw materials and supplies	€ 337,407
Unfinished goods	132,624
Finished goods	108,674
Total	€ 578,705

Other Assets (Details)

Other Assets (Details) - EUR (€) € in Millions	Jun. 30, 2023	Dec. 31, 2022
Other Assets
Prepayments on research and development	€ 4.8	€ 9.8

Other Assets (Details) - Schedu

Other Assets (Details) - Schedule of Other Assets - EUR (€)	Jun. 30, 2023	Dec. 31, 2022
Non-current other assets
Prepaid expenses	€ 283,784	€ 308,066
Total	283,784	308,066
Current other assets
Prepayments on research & development projects	4,757,771	9,776,505
Prepaid expense	1,146,674	1,841,935
Others	501,422	2,552,071
Total	6,405,867	14,170,511
Total other assets	€ 6,689,651	€ 14,478,577

Financial Assets and Financia_3

Financial Assets and Financial Liabilities (Details) € in Millions	Jun. 30, 2023 EUR (€)
Financial Assets and Financial Liabilities
Fair value of current and non-current financial assets	€ 100.7
Assets from government grants	€ 0.8

Financial Assets and Financia_4

Financial Assets and Financial Liabilities (Details) - Schedule of Financial Assets and liabilities - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Financial assets at amortized cost
Non-current financial assets	$ 18,951,267	$ 2,900,902
Financial assets from government grants	5,193,245	732,971
Other current financial assets	77,601,286	64,791,088
Financial liabilities at amortized cost
Liabilities from government grants	801,632	6,209,266
Trade and other payables	$ 5,200,809	$ 4,987,538

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - Schedule of Cash and Cash Equivalents - EUR (€)	Jun. 30, 2023	Dec. 31, 2022
Short-term deposits
Short-term deposits total	€ 13,925,926	€ 3,422
Cash at banks
Cash at banks total	5,590,033	16,261,932
Total cash and cash equivalents	19,515,959	16,265,354
Deposits Held in U.S. Dollars [Member]
Short-term deposits
Short-term deposits total	7,825,926	3,422
Cash at banks
Cash at banks total	3,340,889	8,645,014
Deposits Held in Euros [Member]
Short-term deposits
Short-term deposits total	6,100,000
Cash at banks
Cash at banks total	€ 2,249,144	€ 7,616,918

Equity (Details)

Equity (Details) € / shares in Units, $ / shares in Units, $ in Millions	1 Months Ended
	Apr. 30, 2023 EUR (€) € / shares shares	Apr. 30, 2023 USD ($) shares	Jun. 30, 2023 EUR (€)	Apr. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 EUR (€)
Equity (Details) [Line Items]
Sale of common shares (in Shares) | shares	3,235,723			3,235,723
Equity amount (in Dollars)			€ 124,646,004		€ 88,349,440
Net proceeds from equity investments	€ 14,400,000
Sold common shares through a public offering (in Shares) | shares	10,823,529			10,823,529
Share based payment transactions (in Shares) | shares	1,411,764	1,411,764
Price per share (in Dollars per share) | $ / shares				$ 4.25
Nominal value of price per share (in Euro per share) | € / shares	€ 0.12
Proceeds from sales of investment property	€ 2,500,000	$ 2.8
Discounts amount	39,100,000			$ 43.2
Other offering expenses	400,000
Other offering expenses total	€ 38,700,000
Ordinary shares [member]
Equity (Details) [Line Items]
Equity amount (in Dollars) | $				$ 15.7

Share-Based Payments (Details)

Share-Based Payments (Details) € in Millions	6 Months Ended
	Jun. 30, 2023 EUR (€)	Jun. 30, 2022
Share-Based Payments (Details) [Line Items]
Common shares, description	The total number of share options granted during the six months ended June 30, 2023 under the 2017 LTIP was as follows:
Number of grants	1,246,000	1,561,666
Share-based payment expense (in Euro)	€ 2.2
Valuation past grants amount (in Euro)	€ 4.7
Exercise of share options	105,327	0
Option LTIP [Member]
Share-Based Payments (Details) [Line Items]
Exercise of share options	98,000	0
Board of Directors [Member]
Share-Based Payments (Details) [Line Items]
Number of grants	1,567,250	1,362,500

Share-Based Payments (Details)

Share-Based Payments (Details) - Schedule of Stock Option Activity - shares	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2021
Number of share options under the 2012 Plan [Member]
Share-Based Payments (Details) - Schedule of Stock Option Activity [Line Items]
Outstanding Beginning Balance	148,433	148,433
Exercised during the six months ended June 30
Outstanding Ending Balance	148,433	148,433
thereof vested	148,433	148,433
Number of share options under the 2016 Plan [Member]
Share-Based Payments (Details) - Schedule of Stock Option Activity [Line Items]
Outstanding Beginning Balance	888,632	888,632
Exercised during the six months ended June 30
Outstanding Ending Balance	888,632	888,632
thereof vested	888,632	888,632
Number of share options under the LTIP [Member]
Share-Based Payments (Details) - Schedule of Stock Option Activity [Line Items]
Outstanding Beginning Balance	4,985,523	3,170,046
Granted during the six months ended June 30	1,567,250	1,561,666
Exercised during the six months ended June 30	105,327
Forfeited during the six months ended June 30		(117,259)
Outstanding Ending Balance	6,447,446	4,614,453
thereof vested	4,788,759	3,306,162

Share-Based Payments (Details_2

Share-Based Payments (Details) - Schedule of Fair Value of Options Granted	6 Months Ended
	Jun. 30, 2023 $ / shares
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items]
Number of Share options granted	1,567,250
January Twenty four [Member]
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items]
Number of Share options granted	1,454,250
Fair value per option	$ 2.11
FX rate as of grant date	0.9008
Fair value per option	1.9
Share price at grant date / Exercise price	$ 2.37
Expected volatility	1.35%
Expected life (midpoint based)	$ 5.3
Risk-free rate (interpolated, U.S. sovereign strips curve)	3.571%
January twenty four one [Member]
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items]
Number of Share options granted	52,500
Fair value per option	$ 2.13
FX rate as of grant date	0.9008
Fair value per option	1.92
Share price at grant date / Exercise price	$ 2.37
Expected volatility	1.35%
Expected life (midpoint based)	$ 5.5
Risk-free rate (interpolated, U.S. sovereign strips curve)	3.565%
May thirty [Member]
Share-Based Payments (Details) - Schedule of Fair Value of Options Granted [Line Items]
Number of Share options granted	60,500
Fair value per option	$ 361
FX rate as of grant date	0.9203
Fair value per option	3.32
Share price at grant date / Exercise price	$ 4.19
Expected volatility	1.35%
Expected life (midpoint based)	$ 4.5
Risk-free rate (interpolated, U.S. sovereign strips curve)	3.82%

Protective Foundation (Details)

Protective Foundation (Details) - EUR (€) € / shares in Units, € in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Disclosure of Protective Foundation Explanatory [Abstract]
Common shares authorized	110,000,000
Preferred shares authorized	110,000,000
Price per share	€ 0.12
Percentage of issued capital	100%
Reimburse expenses	€ 45	€ 30