Company: RNAC
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001453687-25-000120
Chunk: 110

Company: Cartesian Therapeutics, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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 estimates the fair value of the common stock based on the closing stock price at the end of each reporting period.•Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury at the valuation date commensurate with the expected remaining life assumption.•Dividend rate. The dividend rate is based on the historical rate, which the Company anticipates will remain at zero.•Expected life. The expected life of the 2019 Warrants was assumed to be equivalent to their remaining contractual term which expired on December 23, 2024. The expected life of the 2022 Warrants is assumed to be equivalent to their remaining contractual term which expires on April 11, 2027.•Volatility. The Company estimates stock price volatility based on the Company’s historical volatility for a period of time commensurate with the expected remaining life of the warrants.The 2019 Warrants expired on December 23, 2024 and therefore, there were no 2019 Warrants outstanding as of December 31, 2024 or September 30, 2025. A summary of the Black-Scholes pricing model assumptions used to record the fair value of the 2022 Warrants liability is as follows: September 30, 2025December 31, 2024Risk-free interest rate3.60%4.25%Dividend yield— — Expected life (in years)1.532.28Expected volatility97.44%92.92%The following table reflects a roll-forward of fair value for the Company’s Level 3 warrant liabilities (see Note 11, “Equity” to these unaudited consolidated financial statements) for the nine months ended September 30, 2025 (in thousands):Warrant liabilityFair value as of December 31, 2024$3,836 Change in fair value(2,988)Fair value as of September 30, 2025$848 Contingent Value RightOn December 6, 2023, as contemplated by the Merger Agreement, the Company entered into a contingent value rights agreement, or the CVR Agreement, pursuant to which each holder of common stock or a 2022 Warrant as of December 4, 2023 was distributed a CVR, issued by the Company for each share of common stock held directly or underlying a 2022 Warrant held by such holder as of December 4, 2023. Holders of warrants other than the 2022