Company: RNAC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001453687-25-000099
Chunk: 49

Company: Cartesian Therapeutics, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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counted cash flows projected to be generate over the remaining lease terms. These projections included management’s estimates of cash inflows from 

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potential sublease income. The carrying amount of the asset groups was found to be unrecoverable, thus the Company assessed the fair value of each asset group. The fair value was determined using the income approach, whereby the Company discounted the estimated net cash flows using a rate commensurate with the Company’s estimated incremental borrowing rate. As a result of this assessment, which included unrecoverable operating and maintenance costs, the Company determined that each asset group was fully impaired. As such, an impairment charge of $7.6 million was recognized during the year ended December 31, 2024, $7.4 million of which related to the right-of-use assets and $0.2 million related to property and equipment.704 Quince Orchard Road LeasesIn connection with the Merger, the Company acquired two operating leases for office and laboratory space in Gaithersburg, Maryland. The leases expire in January 2027 and do not contain any renewal rights. The discount rate of 11.5% was determined based on the Company’s incremental borrowing rate adjusted for the lease term.For the three and six months ended June 30, 2025 and 2024, the components of lease costs were as follows (in thousands):Three Months EndedJune 30,Six Months EndedJune 30,2025202420252024Operating lease cost$571 $956 $1,155 $1,731 Variable lease cost426 352 832 749 Short-term lease cost8 1 19 4 Less: Sublease income— (250)— (760)Total lease cost$1,005 $1,059 $2,006 $1,724 The maturity of the Company’s operating lease liabilities as of June 30, 2025 were as follows (in thousands):June 30,20252025 (remainder)$2,230 20264,538 20274,345 20282,314 20291,409 Thereafter2,188      Total future minimum lease payments17,024 Less: Imputed interest3,675      Total operating lease liabilities$13,349 The supplemental disclosure for the statements of cash flows related to operating leases was as follows (in thousands):Six Months EndedJune 30,20252024Cash paid for amounts included in