Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 187

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 187
---
 the Company’s ability
to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable
that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is
probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s
ability to continue as a going concern within one year after the date that these financial statements are issued. In performing its evaluation,
management excluded certain elements of its operating plan that cannot be considered probable. Under ASC 205-40, the future receipt of
potential funding from future equity or debt issuances cannot be considered probable at this time because these plans are not entirely
within the Company’s control.

<div align='center'>F-8</div>

Table of Contents

The Company's expectation to generate operating
losses and negative operating cash flows in the future, the need for additional funding to support its planned operations, and the continued
listing requirements for Nasdaq raise substantial doubt regarding the Company’s ability to continue as a going concern for a period
of one year after the date that these financial statements are issued. The Company made strategic decisions, including (i) a significant
reduction in the workforce by approximately 81% in April 2024, and included the reversal of accrued annual bonuses, (ii) the termination
of certain license agreements with St. Jude and Leiden University Medical Centre in April 2024, and with Mayo Clinic in June 2024, and
(iii) closing the Mustang-sponsored Phase 1/2 study in Non-Hodgkin lymphoma and chronic lymphocytic leukemia (MB-106) to preserve capital
and prioritize the allocation of resources. The Company continues to pursue raising additional cash resources through public or private
equity or debt financings.

​

The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course
of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts or the amounts and classification of liabilities that may be necessary if the Company is unable to continue as a going concern.

Note 2 - Significant Accounting Policies

Basis of Presentation

The Company’s financial statements have
been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company