Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 191

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 191
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 on fair
value measurements for financial assets and liabilities measured at fair value on a recurring basis. Under the accounting guidance, fair
value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should
be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance requires fair value measurements
be classified and disclosed in one of the following three categories:

Level 1: Quoted prices in
active markets for identical assets or liabilities.

Level 2: Observable
inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.

Level 3: Unobservable
inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing
models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires
significant judgment or estimation.

The fair value hierarchy also requires an entity
to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities
measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management
to make judgments and consider factors specific to the asset or liability.

Leases

Arrangements meeting the definition of a lease
are classified as operating or financing leases and are recorded on the balance sheet as both a right of use asset and lease liability,
calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company's incremental
borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized
over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line
rent expense over the lease term. Variable lease expenses are recorded when incurred. In calculating the right of use asset and lease
liability, the Company elects to combine lease and non-lease components. The Company excludes short-term leases having initial terms of
12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the
lease term.