Company: MBIO
Filing Date: 2025-04-01
Form Type: 424B3
Source: 0001104659-25-030657
Chunk: 206

Company: MUSTANG BIO, INC.
Filing Date: 2025-04-01
Form: 424B3
Chunk 206
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3,247 |

Depreciation expense for the years ended
December 31, 2024 and 2023, was approximately $0.7 million and $1.9 million, respectively, and was recorded in research and
development expense in the Statements of Operations.

Fixed assets – construction in process primarily
reflects buildout costs and equipment that have not yet been placed into service.

Impairment of Long-Lived Assets

During the second quarter of fiscal year 2024,
the Company concluded it had a triggering event requiring assessment of impairment for certain leasehold improvements and the related
right-of-use asset. The Company assessed the carrying value of the asset group consisting of the leasehold improvements and right-of-use
asset in accordance with ASC 360, given the significant changes to the Company’s operations, operating cash and the repurchase of
equipment. The assessment of the recoverability of the asset group concluded that there was impairment on the carrying value of the asset
group of approximately $2.6 million, which was allocated on a pro rata basis using the relative carrying amounts of the assets. Approximately
$2.2 million of the impairment loss was allocated to the leasehold improvements, with the remaining $0.4 million allocated to the right-of-use
asset.

Note 7 - Accounts Payable and Accrued Expenses

At December 31, 2024 and 2023, accounts
payable and accrued expenses consisted of the following:

| ​                                           
 ​                                           | ​                
 ​                
 ($ in thousands) | ​            
 December 31, 
 ​            |     ​ 
  2024 | ​ | ​ |      ​ 
   2023 |
|:--------------------------------------------|:-----------------|:-------------|------:|:--|:--|-------:|
| Accounts payable                            | ​                | $            | 7,464 | ​ | $ |  6,322 |
| Accrued research and development            | ​                | ​            |   330 | ​ | ​ |  4,118 |
| Accrued compensation                        | ​                | ​            |    93 | ​ | ​ |  2,838 |
| Other (1)                                   | ​                | ​            | 1,599 | ​ | ​ |    739 |
| Total accounts payable and accrued expenses | ​                | $            | 9,486 | ​ | $ | 14,017 |

(1)
Other includes approximately $