Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 137

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 137
---
 prior
written notice.

The offering of ATM Shares pursuant to the ATM
Agreement will terminate upon the earlier of (i) the sale of all ATM Shares subject to the ATM Agreement or (ii) the termination
of the ATM Agreement in accordance with its terms.

During the year ended December 31, 2024, we issued
approximately 140,000 shares of common stock at an average price of $18.78 for gross proceeds of $2.6 million under the ATM Agreement.
In connection with these sales, we paid aggregate fees of approximately $0.1 million.

The number of securities we are able to sell pursuant
to the registration statements on Form S-3 is limited. See “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”

Critical Accounting Policies and Use of Estimates

Our financial statements include certain amounts
that are based on management’s best estimates and judgments. Our significant estimates include, but are not limited to, useful lives
assigned to long-lived assets and amortizable intangible assets, fair value of stock options and warrants, stock-based compensation, accrued
expenses, provisions for income taxes and contingencies. Due to the uncertainty inherent in such estimates, actual results may differ
from these estimates. Our estimates are based on our historical experience and on various other factors that we believe are reasonable
under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that
are not readily apparent from other sources.

Actual results may differ from these estimates
under different assumptions or conditions. We believe that the accounting policies discussed below are critical to understanding our historical
and future performance, as these policies relate to the more significant areas involving management’s judgments and estimates.

While our significant accounting policies are
described in the notes to our financial statements included elsewhere in this Annual Report on Form 10-K, we believe that the following
critical accounting policies are most important to understanding and evaluating our reported financial results.

Research and Development

Research and development costs are expensed as
incurred. Advance payments for goods and services that will be used in future research and development activities are expensed when the
activity has been performed or when the goods have been received rather than when the payment is made. Upfront and milestone payments
due to third parties that perform research and development services on our behalf will be expensed as services are rendered or when the
milestone is achieved.

Research and development costs primarily consist