Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 192

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 192
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<div align='center'>F-11</div>

Table of Contents

Stock-Based Compensation

The Company expenses stock-based compensation
to employees over the requisite service period based on the estimated grant-date fair value of the awards and forfeiture rates.

The Company estimates the fair value of stock
option grants using the Black-Scholes option pricing model. The assumptions used in calculating the fair value of stock-based awards represent
management’s best estimates and involve inherent uncertainties and the application of management’s judgment.

Income Taxes

The Company records income taxes using the asset
and liability method. Deferred income tax assets and liabilities are recognized for the future tax effects attributable to temporary differences
between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and operating
loss and tax credit carryforwards. The Company establishes a valuation allowance if management believes it is more likely than not that
the deferred tax assets will not be recovered based on an evaluation of objective verifiable evidence. For tax positions that are more
likely than not of being sustained upon audit, the Company recognizes the largest amount of the benefit that is greater than 50% likely
of being realized. For tax positions that are not more likely than not of being sustained upon audit, the Company does not recognize any
portion of the benefit.

Net Loss per Share

Basic and diluted net loss per share is computed
by dividing net loss by the weighted average number of common shares outstanding, including prefunded warrants and shares held in abeyance,
during the period, without consideration of potential dilutive securities. For periods in which the Company generated a net loss, the
Company does not include potential shares of common stock in diluted net loss per share when the impact of these items is anti-dilutive.
The Company has generated a net loss for all periods presented, therefore diluted net loss per share is the same as basic net loss per
share since the inclusion of potentially dilutive securities would be anti-dilutive.

The table below summarizes potentially dilutive
securities that were not considered in the computation of diluted net loss per share because they would be anti-dilutive.

| ​                                
 ​                                
 ​                                | ​ 
 ​ |                               ​ 
 For the year ended December 31, 
                            2024 | ​ |      ​ 
   2023 |
|:---------------------------------|:--|--------------------------------:|:--|-------:|
| Warrants                         |   |                       1,576,919 | ​ | 56,254 |
| Options