Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 142

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 142
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| ● | $0.6 million decrease in tax expenses, primarily due to overpayments of estimated taxes in the prior year; |

| ● | $0.4 million decrease in other costs, including business insurance; and |

| ● | offset by $0.2 million increase in expense related to equity fees to Fortress. |

Other Income (Expense)

Other income (expense) consists primarily of funds
received from the NIH grant, interest income earned on cash balances and interest expense on our Term Loan. For the years ended December 31, 2024,
and 2023, total other income (expense) was approximately $0.5 million and $(2.3) million, respectively. The $2.8 million increase in other
income for the year ended December 31, 2024 was primarily attributable to decreased interest expense of $4.1 million, which
reflects repayment of the Term Loan in the prior year, offset by $0.6 million decrease in other income reflecting funds received from
the NIH grant in 2023, and $0.7 million decrease in interest income.

Liquidity and Capital Resources

Since our inception,
we have incurred substantial operating losses and expect to continue to incur significant operating losses for the foreseeable future
and may never become profitable. To date, we have funded our operations primarily with the proceeds from sales of equity securities. For
example, on May 2, 2024, we completed the May 2024 Offering, on June 21, 2024, we completed the June 2024 Offering, and on October 25,
2024, we completed the induced warrant exercise (together the “Offerings”) described in “Financing Activities”
above. The net proceeds of the Offerings, after deducting the fees and expenses of the placement agent and other offering expenses payable
by us,

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but excluding the net
proceeds from the exercise of the Warrants, were approximately $9.3 million. As of December 31, 2024, we had an accumulated
deficit of $396.7 million and cash and cash equivalents of $6.8 million.

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On April 10, 2024, our Board approved a reduction
in our workforce of approximately 81%, in order to reduce costs and preserve capital due to the fundraising environment and continued
uncertainty regarding the CFIUS review of the sale of the Facility and the