Note 1 - Organization, Description of Business and Liquidity and Capital Resources

Mustang Bio, Inc. (the “Company” or “Mustang”) was incorporated in Delaware on March 13, 2015. Mustang is a clinical-stage biopharmaceutical company focused on translating medical breakthroughs into potential cures for difficult-to-treat cancers. The Company may acquire rights to these technologies by licensing the rights or otherwise acquiring an ownership interest in the technologies, funding their research and development and eventually either out-licensing or bringing the technologies to market.

The Company is a majority-controlled subsidiary of Fortress Biotech, Inc. (“Fortress” or “Parent”).

Liquidity and Capital Resources

The Company has incurred substantial operating losses and expects to continue to incur significant operating losses for the foreseeable future and may never become profitable. To date, the Company has funded its operations primarily with the proceeds from offerings of equity securities. As of March 31, 2026, the Company had an accumulated deficit of $399.6 million, and cash and cash equivalents of $16.3 million.

The Company expects to incur substantial expenses for the foreseeable future relating to research, development and commercialization of our potential products and may never achieve profitability. The Company does not have any products that are approved for commercial sale and, therefore, it does not expect to generate any revenues from product sales in the foreseeable future, if ever. Additionally, there can be no assurance that it will be successful in securing additional resources when needed, on terms acceptable to the Company, if at all.

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The Company is currently not in compliance with certain standards for continued listing on the Nasdaq Capital Market, namely, the minimum bid price requirement, see Note 9 – Subsequent Events. There can be no assurance that the Company will be able to regain compliance with the continued listing rules of the Nasdaq Stock Market LLC (“Nasdaq”), which could adversely affect the value and liquidity of its common stock.

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The Company expects to continue generating operating losses and negative operating cash flows as it develops its products through to potential approval. As of March 31, 2026, the Company believes it has sufficient cash and cash equivalents to fund its operations for at least twelve months from the issuance date of these financial statements.