Company: MBIO
Filing Date: 2025-01-15
Form Type: S-1
Source: 0001410578-25-000028
Chunk: 226

Company: MUSTANG BIO, INC.
Filing Date: 2025-01-15
Form: S-1
Chunk 226
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 uBriGene. The Company will recognize the deferred income and will receive additional proceeds from uBriGene totaling $5.0 million, if the Company, within two years from the closing date, (i) completes an issuance of equity securities in an amount equal to or greater than $10.0 million and (ii) obtains consent of the landlord to the proposed lease transfer.

We identified the evaluation of the Company’s accounting for the transaction with uBriGene as a critical audit matter. Specifically, challenging and complex auditor judgment and specialized skills and knowledge were required in identifying the elements of the transaction, including those that were delivered in 2023 and those that were yet to be delivered, and evaluating the application of the relevant accounting guidance.

The following are the primary procedures we performed to address this critical audit matter. We inspected the Company’s accounting analysis for the transaction. We compared management’s assessment of the elements of the transaction delivered and those that were yet to be delivered to supporting documentation. We involved professionals with specialized skills and knowledge, who assisted in: inspecting the underlying agreements to understand the relevant terms and conditions and identify the elements of the transaction evaluating whether the Company’s accounting for the transaction is in accordance with the relevant accounting guidance.

/s/ KPMG LLP

We have served as the Company’s auditor since 2021.

Boston, Massachusetts
March 11, 2024

<div align='center'>F-3</div>

MUSTANG BIO, INC. BALANCE SHEETS (in thousands, except for share and per share amounts)

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 ASSETS                                                                                                                                                                                         
 Current Assets:                                                                                                                                                                                | ​ 
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 December 31, 
 2023         
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 December 31, 
 2022         
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|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--|:-------------|---------:|:--|:-------------|---------:|
| Cash and cash equivalents                                                                                                                                                                      | ​ | $            |    6,234 | ​ | $            |   75,656 |
| Other receivables - related party                                                                                                                                                              | ​ |              |        — | ​ |              |       36 |
| Other receivables                                                                                                                                                                              | ​ | ​            |    3,879 | ​ | ​            |      263 |
| Prepaid expenses