Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 182

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 182
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 common and common stockholders in the calculation of net loss per share. The Company used the Black-Scholes Model
to determine the estimated fair value of the New Warrants issued in the Induced Warrant Exercise.

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Table of Contents

We identified the evaluation of the Company’s accounting for
the Induced Warrant Exercise and the determination of the fair value of the New Warrants as a critical audit matter. Specifically, challenging
and complex auditor judgment and specialized skills and knowledge were required in evaluating the application of the relevant accounting
guidance, including the conclusion that the New Warrants are equity classified and that the fair value of the New Warrants should be considered
a deemed dividend in determining net loss per share, and the estimated fair value of the New Warrants due to the degree of subjectivity
associated with the expected volatility assumption.

The following are the primary procedures we performed to address this
critical audit matter. We inspected the Company’s accounting analysis for the transaction. We involved individuals with specialized
skills and knowledge, who assisted in inspecting the underlying agreements to understand the relevant terms and conditions of the transaction
and evaluating whether the Company’s accounting for the transaction was in accordance with the relevant accounting guidance. We
also involved valuation professionals with specialized skills and knowledge, who assisted in:

| ● | developing an independent expectation of the expected volatility assumption based on consideration of implied share price volatility information |

| ● | developing an independent range of the fair value of the New Warrants using publicly available market data and the independently developed expected volatility assumption |

| ● | comparing the independently developed ranges of the fair value to the respective fair value determined by the Company. |

/s/ KPMG LLP

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We have served as the Company’s auditor since 2021.

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Boston, Massachusetts
March 28, 2025

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Table of Contents

<div align='center'>MUSTANG BIO, INC.

BALANCE SHEETS

(in thousands, except for share and per share amounts)</div>

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 Current Assets:                                                                                                                                                                                | ​ 
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 December 31, 
 2024         
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 December 31, 
 2023         
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