Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 208

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 208
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, in the form of $0.5 million letter of credit and $0.3 million in cash, which increased
to $1.3 million ($1.0 million letter of credit, $0.3 million in cash) on November 1, 2019. After the fifth lease year, the letter of credit
obligation is subject to reduction. As of December 31, 2024, the letter of credit was cancelled.

The Company leases office space under an agreement
classified as an operating lease that expires in October 2026. The Company’s lease liabilities result from the lease of its Plantation
Street Facility in Massachusetts, which expires in 2026. 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.

During the second quarter of fiscal year 2024,
the Company identified triggering events that required an impairment of the asset group consisting of the right-of-use asset and associated
leasehold improvements. The assessment concluded that impairment existed, and the impairment loss was allocated to the leasehold improvements
and right-of-use assets based on the relative carrying amounts of the assets (see Note 6). At December 31, 2024, the Company
had operating lease liabilities of $0.9 million and right of use assets of $0.1 million, which were included in the Balance Sheet. At
December 31, 2023, the Company had operating lease liabilities of $2.5 million and right of use assets of $1.6 million, which
were included in the Balance Sheet.

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

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| ​                    
 ​                    | ​ |                  ​ 
 For the Year Ended |            ​ | ​ |    ​ |            ​ | ​ |
|:---------------------|:--|-------------------:|-------------:|:--|-----:|-------------:|:--|
| ​                    | ​ |                  ​ | December 31, | ​ |    ​ | December 31, | ​ |
| ($ in thousands)     |   |               2024 |              |   | 2023 |              |