Company: RNAC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001453687-25-000099
Chunk: 37

Company: Cartesian Therapeutics, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 of Cyrus’ Series B Preferred Stock, par value $0.0001 per share, at a purchase price of $0.8595 per share, for $2.0 million.In accordance with ASC 810, the Company has a variable interest in Cyrus resulting from its equity investment. The Company will share in Cyrus’ expected losses or receive a portion of its expected returns and absorb the variability associated with changes in the entity’s net assets. However, the Company is not the primary beneficiary as it does not have the power to direct the activities most significant to Cyrus, and therefore it is not required to consolidate Cyrus. The Company has recognized the $2.0 million investment of Cyrus’ Series B Preferred Stock at cost on the purchase date.As of June 30, 2025 and December 31, 2024, no impairment indicators were present and there were no observable price changes. Therefore, the carrying value of the investment in Cyrus is $2.0 million on the accompanying consolidated balance sheets. The Company’s maximum exposure to loss related to this variable interest entity is limited to the carrying value of the investment. The Company has not provided financing to Cyrus other than the amount contractually required by the Series B Preferred Stock Purchase Agreement.

6. Net Income (Loss) Per Share Allocable to Common Stockholders

The Company used the treasury stock method to determine the number of dilutive shares for the three months ended June 30, 2025 and 2024. The following table sets forth the computation of basic and diluted net income (loss) per share allocable to 

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common stockholders for the three and six months ended June 30, 2025 and 2024 (in thousands, except share and per-share data): Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Numerator:     Net income (loss)$15,886 $13,836 $(1,824)$(42,988)     Less: Undistributed earnings allocable to participating securities(2,628)(4,208)— —      Net income (loss) allocable to shares of common stock - basic and diluted$13,258 $9,628 $(1,824)$(42,988)Denominator:     Weighted-average common shares outstanding - basic25,980,262 16,723,479 25,941,670 11,068,749      Dilutive effect of employee equity