Mustang Bio, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, a clinical-stage biopharmaceutical firm focused on cell therapy, experienced a notable decrease in total operating expenses, which fell to $1.5 million for the three months ended September 30, 2024, down from $10.3 million in the same period of 2023. This represents an 86% reduction, primarily attributed to a drastic cut in research and development (R&D) expenses, which plummeted to $57,000 from $9.5 million year-over-year.

For the nine months ending September 30, 2024, total operating expenses were $15.2 million, a decrease of 62% from $40.5 million in the prior year. The net loss for the three months was $1.4 million, significantly improved from a loss of $10.1 million in the same quarter of 2023. Similarly, the net loss for the nine-month period was $14.8 million, down from $43.0 million in 2023, marking a 66% reduction.

The company’s cash and cash equivalents decreased to $3.5 million as of September 30, 2024, compared to $6.2 million at the end of 2023. Total assets also declined to $7.2 million from $17.7 million over the same period. Mustang Bio reported an accumulated deficit of $395.8 million and a total stockholders' equity deficit of $8.7 million, raising concerns about its ability to continue as a going concern.

Strategically, Mustang Bio undertook a workforce reduction of approximately 81% in April 2024 to preserve capital. The company also terminated several license agreements, including those with St. Jude and Leiden University Medical Centre, which contributed to a reduction in outstanding liabilities. The company has been actively raising funds through equity offerings, generating approximately $5.3 million in net proceeds in 2024, which are intended for working capital and corporate purposes.

Despite these efforts, Mustang Bio faces substantial challenges, including the need for additional financing to support ongoing operations and product development. The company has not yet generated revenue from its product candidates, which remain in early-stage clinical trials. The financial outlook remains uncertain, with significant doubt about the company's ability to continue operations without further capital infusion.