Company: RNAC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001453687-25-000099
Chunk: 54

Company: Cartesian Therapeutics, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 shares of common stock.Stock-Based Compensation ExpenseIn April 2025, the Company entered into a separation agreement and release, or the Separation Agreement, with the Company’s former Chief Technology Officer, Metin Kurtoglu. Dr. Kurtoglu’s employment with the Company ended effective May 2025, and Dr. Kurtoglu will serve as a consultant to the Company from May 2025 through April 2026, or the Consulting Period. Pursuant to the Separation Agreement, certain of Dr. Kurtoglu’s stock options and restricted stock unit awards were modified to accelerate the vesting of a portion of the awards, continue the vesting of the remaining awards during the Consulting Period, and extend the post-termination exercise period of the modified stock options. The services performed during the Consulting Period do not qualify as substantive services under ASC 718 and therefore, the continued vesting of these awards represents a modification to the original award. The modification resulted in the recognition of $0.7 million of stock-compensation expense during the three and six months ended June 30, 2025 which is reflected in research and development expenses on the consolidated statements of operations and comprehensive income (loss).

22

Stock-based compensation expense by classification included within the consolidated statements of operations and comprehensive income (loss), was as follows (in thousands): Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Research and development$1,810 $776 $3,085 $1,488 General and administrative1,469 815 2,702 1,534 Total stock-based compensation expense$3,279 $1,591 $5,787 $3,022 Stock OptionsThe estimated grant date fair values of stock option awards granted under the 2016 Plan and the 2018 Inducement Incentive Award Plan were calculated using the Black-Scholes option pricing model based on the following weighted-average assumptions: Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Risk-free interest rate4.05%4.53%4.42%4.04%Dividend yield— — — — Expected term (in years)6.156.186.206.20Expected volatility95.12%93.57%97.21%95.09%Weighted-average fair value of common stock$11.80 $22.08 $