Company: MBIO
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001104659-25-009408
Chunk: 252

Company: MUSTANG BIO, INC.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 252
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 to additional extensions at the Company’s option. Base rent, net of abatements of $ 0.6million over the lease term, totals approximately $ 3.6million, on a triple-net basis. The terms of the lease also require that the Company post an initial security deposit of $ 0.8million, in the form of $ 0.5million letter of credit and $ 0.3million in cash, which increased to $ 1.3million ($ 1.0million letter of credit, $ 0.3million in cash) on November 1, 2019. After the fifth lease year, the letter of credit obligation is subject to reduction. In January 2023, the letter of credit was reduced to $ 0.8million. The Plantation Street Facility began operations for the production of personalized CAR T and gene therapies in 2018. The Company leases office space and copiers under agreements classified as operating leases that expire on various dates through 2030. The Company’s lease liabilities result from the lease of its facilities in Massachusetts, which expire in 2030 and 2026, for the Mercantile Street Facility and Plantation Street Facility, respectively, and its copiers, which expire in 2024. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Certain of the Company’s leases include renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liabilities and right of use assets as the Company is not reasonably certain to exercise the options. The Company does not act as a lessor or have any leases classified as financing leases. At December 31, 2023, the Company had operating lease liabilities of $ 2.5million and right of use assets of $ 1.6million, which were included in the Balance Sheet. At December 31, 2022, the Company had operating lease liabilities of $ 3.9million and right of use assets of $ 2.9million, which were included in the Balance Sheet.

F-21

The following summarizes quantitative information about the Company’s operating leases:

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