Company: RNAC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001453687-25-000099
Chunk: 73

Company: Cartesian Therapeutics, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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Change in fair value of warrant liabilities

For the three months ended June 30, 2025, we recognized $0.7 million of income from the decrease in the fair value of warrant liabilities, compared to $3.9 million charge from the increase in the fair value of warrant liabilities for the three months ended June 30, 2024, an increase of $4.6 million. Fair value of warrant liabilities was determined utilizing the Black-Scholes valuation methodology. The decrease in warrant value was primarily driven by a decrease in the per-share price of our common stock and the expiration of the warrants we issued in 2019 during the year ended December 31, 2024.

Change in fair value of contingent value right liability

For the three months ended June 30, 2025, we recognized $35.3 million of income from the decrease in the fair value of the CVR liability, compared to $2.5 million of income from the decrease in the fair value of the CVR liability for the three months ended June 30, 2024, an increase of $32.8 million. The fair value of the CVR liability was determined utilizing a Monte Carlo simulation model. The decrease in the fair value of the CVR liability was primarily due to changes in the timing of anticipated payments. 

Other (expense) income, net

During the three months ended June 30, 2025, we recognized less than $0.1 million other expense, net, compared to $0.3 million other income, net for the three months ended June 30, 2024. 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 income for three months ended June 30, 2025 was $15.9 million as compared to net income of $13.8 million for the three months ended June 30, 2024, an increase of $2.1 million The change was primarily due to income associated with the change in the fair value of the CVR liability and the change in the fair value of the warrant liabilities, partially offset by the decrease in collaboration revenue during the three months ended June 30, 2025.

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Comparison of the Six Months Ended June 30, 2025 and 2024

Six Months Ended June 30,Increase (Decrease)20252024(in thousands, except percentages)