MUSTANG BIO, INC. Commitments Disclosure
Note 7 - Commitments and Contingencies
Leases
On February 7, 2025, the Company entered into the First Amendment to the Lease Agreement with WCS – 377 Plantation Street, Inc. (the “Landlord”), pursuant to which the Company’s lease of its Plantation Street Facility was terminated. Following the termination of the lease, the Company is no longer party to any leases for office space or equipment. Upon termination of the lease, the Company moved its headquarters to 95 Sawyer Road, Suite 110, Waltham, MA, which is office space leased by Fortress. Fortress allocates a small portion of its rent and office related costs to the Company on a monthly basis which is recorded in general and administrative expenses in the Statements of Operations.
Upon termination of the lease, the Company wrote off the remaining right of use assets, operating lease liabilities, and associated leasehold improvements and recorded a net gain of approximately $0.4 million in research and development expenses in the Statements of Operations. As of December 31, 2025, the Company had no operating lease liabilities or right of use assets. At December 31, 2024, the Company had operating lease liabilities of $0.9 million and right of use assets of $0.1 million, which were included in the Balance Sheet.
The following summarizes quantitative information about the Company’s operating leases, which were terminated in February 2025, and the nominal rent allocation from Fortress:
| For the Year Ended | |||||
December 31, | December 31, | |||||
($ in thousands) | | 2025 | 2024 | |||
Lease cost |
| | ||||
Operating lease cost | $ | 20 | $ | 145 | ||
Variable lease cost | 175 | 324 | ||||
Total | $ | 195 | $ | 469 | ||
| For the Year Ended |
| ||||||
December 31, | December 31, | |||||||
($ in thousands) | | 2025 |
| | 2024 |
| ||
Operating cash outflows from operating leases |
| $ | 86 |
| $ | 534 | ||
Gain on lease termination | $ | 394 | $ | 314 | ||||
Weighted-average remaining lease term – operating leases | — | 1.8 | ||||||
Weighted-average discount rate – operating leases | 9.0 | % | 9.0 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 19, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 23, 2022 | |
| 2020 | Mar 24, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 18, 2019 | |
| 2017 | Mar 29, 2018 | |
| 2016 | Mar 31, 2017 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.