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

Company: Cartesian Therapeutics, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 10
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 $36.8 million charge from the increase in the fair value of the CVR liability for the six months ended June 30, 2024, an increase of $72.4 million. The fair value of the CVR liability was determined utilizing a Monte Carlo simulation model. The increase in the fair value of CVR liability was primarily due to changes in the timing of anticipated payments during the six months ended June 30, 2025.

Change in fair value of forward contract liabilities

The remaining Series A Preferred Stock forward contract liability was settled during the six months ended June 30, 2024. As such, no change in the fair value of the Series A Preferred Stock forward contract liability is reflected in our unaudited consolidated financial statements for the six months ended June 30, 2025.

Other (expense) income, net

During the six months ended June 30, 2025, we recognized less than $0.1 million of other expense, net, compared to $0.8 million other income, net for the six months ended June 30, 2024, a decrease of $0.8 million, or 100%. The decrease was primarily due to a decrease in sublease income. The terms of our subleases expired during the year ended December 31, 2024.

Net income (loss)

Net loss for the six months ended June 30, 2025 was $1.8 million as compared to net loss of $43.0 million for the six months ended June 30, 2024, a decrease of $41.2 million or 96%. The change was primarily due to income associated with the change in the fair value of the CVR liability and warrant liabilities during the six months ended June 30, 2025, partially offset by revenue recognized under the Sobi License during the six months ended June 30, 2025.

Liquidity and Capital Resources

We have incurred recurring net losses since our inception. We expect that we will continue to incur losses and that such losses will increase for the foreseeable future. We expect that our research and development and general and administrative expenses will continue to increase and, as a result, we will need additional capital to fund our operations, which we may raise through a combination of equity offerings, debt financings, third-party funding, potential royalty and/or milestone monetization transactions and other collaborations and strategic alliances.

Our cash, cash equivalents, and restricted cash were $162.1 million as of June