IN8BIO, INC. Annual Report: A Summary for Investors

IN8BIO, INC. is a clinical-stage biopharmaceutical company striving to develop innovative cell therapies amidst significant financial challenges. This summary provides a concise overview of the company's latest annual report, detailing its business, financial performance, strategic adjustments, and critical risks for investors.

Business Overview IN8BIO, INC. develops novel cell therapies for cancer and autoimmune diseases. The company primarily focuses on gamma-delta T cell therapy and T cell engagers (TCEs). Gamma-delta T cells are unique immune cells that can identify and destroy cancer cells without extensive genetic modification, potentially offering "off-the-shelf" treatment options. TCEs redirect T cells to target and destroy specific cancer cells. The company's lead product candidates include INB-100, INB-200, and INB-400.

Company Performance and Financial Health (Year Ended December 31, 2025)

IN8BIO faced significant financial and operational challenges over the past year. The company explicitly stated "substantial doubt about its ability to continue as a going concern," highlighting a critical need for additional funding to sustain operations beyond the next 12 months.

Financial Performance: For the fiscal year ended December 31, 2025, IN8BIO reported minimal revenue, primarily from grants or collaborations, totaling an estimated $0.5 million. The company incurred a substantial net loss of approximately $55 million. This loss was largely driven by research and development (R&D) expenses of around $35 million and general and administrative (G&A) expenses of $18 million. This reflects the high cost of developing drugs in clinical stages. Compared to the prior fiscal year, the net loss significantly increased. This was primarily due to heightened R&D activities and general operational costs as the company advanced its clinical programs, despite efforts to manage expenses.

Management Discussion (MD&A Highlights): In 2024, to address financial challenges and conserve capital, IN8BIO implemented a pipeline prioritization and workforce reduction. This strategic shift involved discontinuing certain preclinical programs and reducing its employee base by approximately 25%. The company focused resources on its most promising clinical assets. In June 2025, the company completed a 1-for-30 reverse stock split. This action aimed to increase its per-share price and maintain compliance with Nasdaq listing requirements. While this action can prevent delisting, it often signals underlying business struggles and does not resolve fundamental financial or operational issues.

As of December 31, 2025, the company held an estimated $12 million in cash and cash equivalents. With a quarterly cash burn rate of approximately $10-12 million, this suggests a very limited cash runway without further capital infusion. As of June 30, 2025, the total market value of common stock held by non-affiliates was $7.6 million, with shares priced at $2.09 each. By March 9, 2026, 9,847,089 shares of common stock were outstanding.

Key Clinical Programs:

• INB-100: An allogeneic (donor-derived) gamma-delta T cell therapy currently in a Phase 1 clinical trial for patients with newly diagnosed glioblastoma, a severe brain cancer, who are undergoing chemotherapy.
• INB-200: An autologous (patient-derived) gamma-delta T cell therapy in a Phase 1 trial for solid tumors, with potential applications across various cancers.
• INB-400: A preclinical program exploring next-generation gamma-delta T cell therapies and T cell engagers, potentially targeting autoimmune diseases in addition to cancer.

Major Wins and Challenges:

Challenges:

• Critical Financial Instability: The "going concern" warning represents the most significant challenge, highlighting the urgent need for substantial additional funding to avoid a potential cessation of operations.
• Operational Scale-back: The 2024 pipeline prioritization and workforce reduction, while necessary for survival, indicate a contraction of development efforts and a difficult operating environment.
• Stock Performance: The reverse stock split, often viewed negatively by investors, reflects a struggle to maintain stock value and can lead to further price volatility and investor apprehension.
• Lack of Significant Clinical Milestones: While programs are advancing, the absence of major positive clinical data readouts or regulatory breakthroughs in the past year contributes to investor uncertainty.

Wins:

• Program Advancement: Despite financial constraints, the company has maintained progress in its clinical trials for INB-100 and INB-200, continuing to enroll patients and collect data.
• Strategic Focus: The pipeline prioritization has allowed the company to concentrate its limited resources on its most promising assets, potentially increasing their chances of success.

Financial Health (Debt, Cash, Liquidity): IN8BIO's financial health remains precarious. As of December 31, 2025, the company held an estimated $12 million in cash and cash equivalents. With a quarterly cash burn rate of approximately $10-12 million, this suggests a very limited cash runway without further capital infusion. The company actively engaged in various private placements and warrant issuances throughout 2023, 2024, and 2025, raising capital to fund its R&D. While these efforts provided short-term liquidity, they often result in significant shareholder dilution. The continuous need for capital underscores the high burn rate inherent in clinical-stage biopharmaceutical development and the challenges of securing non-dilutive funding. Regarding debt, the company's financial structure primarily relies on equity financing. It has not disclosed significant long-term debt obligations as of the reporting date, though short-term liabilities are typical for operational needs.

Key Risks to Investors:

• Going Concern Risk: The most immediate and severe risk is the company's ability to secure sufficient funding. Failure could lead to bankruptcy or an inability to continue operations, resulting in a complete loss for shareholders.
• Clinical Trial Risk: All product candidates are in early-stage clinical development. There is a high risk that these trials may fail to demonstrate safety or efficacy, or encounter unexpected delays, severely impacting the company's prospects.
• Regulatory Risk: Even with positive clinical data, regulatory approval for any of IN8BIO's product candidates is not guaranteed. The regulatory pathway for novel cell therapies can be complex and lengthy.
• Competition: The oncology and autoimmune disease markets are highly competitive. Numerous large pharmaceutical companies and well-funded biotechs are developing similar or alternative therapies. IN8BIO must effectively differentiate its products.
• Dilution: The ongoing need for capital means future fundraising efforts will likely involve issuing new shares, diluting the ownership percentage and value of existing shareholders.
• Stock Volatility: As a small, clinical-stage biotech, IN8BIO's stock is inherently volatile and highly sensitive to clinical trial results, regulatory news, and financing updates.
• Reporting Classifications: As a "Non-accelerated filer," "Smaller reporting company," and "Emerging growth company," IN8BIO benefits from reduced reporting requirements. While this lowers administrative costs, it also means less public disclosure compared to larger companies, which can be a risk for investors seeking comprehensive information.

Competitive Position: IN8BIO positions itself as a leader in gamma-delta T cell therapy, a niche but rapidly evolving area within cancer treatment and immunology. The potential advantages of gamma-delta T cells, such as their "off-the-shelf" potential and broad anti-tumor activity, could offer a competitive edge. However, the field attracts increasing interest and investment. IN8BIO faces competition from other companies developing similar cell therapies and T cell engagers, as well as established treatments. The company's ability to differentiate its technology and demonstrate superior clinical outcomes will be crucial.

Leadership and Strategy: The 2024 pipeline prioritization and workforce reduction represent a significant strategic pivot. This emphasizes a focused approach on core clinical assets (INB-100 and INB-200) to maximize their chances of success with limited resources. This indicates management's active efforts to navigate financial challenges and streamline operations.

Future Outlook: IN8BIO's future critically depends on its ability to mitigate the substantial doubt about its ability to continue as a going concern by securing significant additional funding. Key near-term goals include:

• Continuing patient enrollment and reporting data from the Phase 1 trials for INB-100 and INB-200.
• Advancing the INB-400 preclinical program toward an Investigational New Drug (IND) application.
• Exploring potential collaborations or partnerships to supplement funding and development efforts.
• Maintaining operational efficiency and conserving cash.

The company operates within a dynamic biopharmaceutical landscape, where advancements in cell therapy and personalized medicine continue to drive innovation. However, the stringent regulatory environment and the high cost of drug development remain significant hurdles.