Related Party Agreements |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Related Party Agreements | |
| Related Party Agreements |
Note 4 - Related Party Agreements Founders Agreement and Management Services Agreement with Fortress With respect to the Company’s Management Services Agreement (the “Management Services Agreement”) with Fortress for the three and six months ended June 30, 2024 and 2023, expenses related to the MSA are recorded 50% in research and development expenses and 50% in general and administrative expenses in the Unaudited Statements of Operations. For the three months ended June 30, 2024 and 2023, the Company recorded expense of $0.1 million and $0.1 million, respectively, related to the MSA. For the six months ended June 30, 2024 and 2023, the Company recorded expense of $0.3 million and $0.3 million, respectively. Under the terms of the Second Amended and Restated Founders Agreement (the “Founders Agreement”), which became effective July 22, 2016, Fortress will receive a grant of shares of the Company’s common stock equal to two and one-half percent (2.5%) of the gross amount of any equity or debt financing. For the six months ended June 30, 2024, the Company issued 575,191 shares to Fortress in connection with the equity financings. For the three months ended June 30, 2024 and 2023, the Company recorded expense of approximately $163,000 and zero, respectively, in general and administrative expenses related to these shares. For the six months ended June 30, 2024 and 2023, the Company recorded expense of approximately $163,000 and zero, respectively, in general and administrative expenses related to these shares. Annual Stock Dividend
Pursuant to the Company’s Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), the Company issued 353,086 shares of common stock to Fortress as the Annual Stock Dividend (as such term is defined in the Certificate of Incorporation), representing 2.5% of the fully-diluted outstanding equity of Mustang on January 2, 2024. This was recorded in the Statement of Stockholders’ Equity at December 31, 2023, as Common stock issuable – Founders Agreement. The Company recorded an expense of approximately $0.5 million in research and development – licenses acquired related to these issuable shares during the year ended December 31, 2023. Payables and Accrued Expenses Related Party
In the normal course of business Fortress pays for certain expenses on behalf of the Company. Such expenses are recorded as payables and accrued expenses - related party and are typically reimbursed to Fortress in the normal course of business. |