Cartesian Therapeutics, Inc 8-K/A, filed Jan 23, 2024

Cartesian Therapeutics, Inc. (RNAC)

8-K/A 2024-01-23 For: 2023-11-13

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Added on April 08, 2026

About this 8-K/A

Cartesian Therapeutics, Inc filed this 8-K/A on January 23, 2024, reporting on events of November 13, 2023.

Items reported

Item 9.01: Financial statements and exhibits

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Delaware	001-37798	26-1622110
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock (Par Value $0.0001)		RNAC		The Nasdaq Stock Market LLC

Exhibit Number	Description

23.1	Consent of BDO USA, P.C.

99.1	Audited financial statements of Old Cartesian, as of December 31, 2022 and 2021 and for the years then ended.

99.2	Unaudited financial statements of Old Cartesian, as of and for the nine months ended September 30, 2023 and 2022.

99.3	Unaudited pro forma condensed combined financial information of Cartesian Therapeutics, Inc. with respect to the acquisition of Old Cartesian.

104	Cover Page Interactive Data File (formatted as inline XBRL document).

Date: January 23, 2024	CARTESIAN THERAPEUTICS, INC.

	By:	/s/ Carsten Brunn, Ph.D.
	Name:	Carsten Brunn, Ph.D.
	Title:	President and Chief Executive Officer

	December 31 , 2022		December 31 , 2021
Assets
Current assets:
Cash and cash equivalents	$	12,001	$	4,735
Accounts receivable		994		3,129
Payroll tax credit receivable		351		225
Prepaid expenses and other current assets		59		50
Total current assets	$	13,405	$	8,139
Non-current assets:
Property and equipment, net		197		309
Right-of-use asset, net		983		1,195
Security deposit		25		25
Total assets	$	14,610	$	9,668
Liabilities, preferred stock and stockholders' deficit
Current liabilities:
Lease liability	$	228	$	172
Deferred revenue		-		117
NIH liability		461		-
Accrued expenses and other current liabilities		949		978
Total current liabilities	$	1,638	$	1,267
Non-current liabilities:
NIH liability		-		345
Lease liability, net of current		880		1,108
Total liabilities	$	2,518	$	2,720
Commitments and contingencies (Note 11)
Series A Preferred Stock; $0.01 par value, 220 authorized, 219.125 issued and outstanding as of
December 31, 2022 and December 31, 2021		9,623		9,623
Series B Preferred Stock; $0.01 par value, 110 authorized, 109.267 issued and outstanding as of
December 31, 2022 and December 31, 2021		7,128		7,128
Series B-1 Preferred Stock; $0.01 par value, 77 authorized, 65.017 issued and outstanding as of
December 31, 2022 and December 31, 2021		3,162		3,162
Series B-2 Preferred Stock; $0.01 par value, 195 authorized, 193.644 issued and outstanding as of
December 31, 2022 and none authorized, issued and outstanding as of December 31, 2021		12,144		-
Series B-2 Preferred Stock Subscription Receivable		(1,333)		-
Stockholders' deficit:
Common stock, $0.01 par value, 3,200 authorized, 1,240.625 issued and outstanding as of December 31, 2022 and 1,237.625 issued and outstanding as of December 31, 2021		-		-
Additional paid-in capital		7,432		6,644
Accumulated deficit		(26,064)		(19,609)
Total stockholders’ deficit	$	(18,632)	$	(12,965)
Total liabilities, preferred stock and stockholders' deficit	$	14,610	$	9,668

	Year Ended December 31 ,
		2022	2021
Grant revenue:	$	1,449	$	3,337

Operating expenses:
Research and development		6,841		6,090
General and administrative		1,244		1,006
Total operating expenses		8,085		7,096
Loss from operations		(6,636)		(3,759)
Other income, net:
Interest income		35		3
Other income, net		146		116
Total other income		181		119
Net loss	$	(6,455)	$	(3,640)

	Series A Preferred Stock		Series B Preferred Stock		Series B-1 Preferred Stock		Series B-2 Preferred Stock		Series B-2 Preferred Stock Subscription Receivable	Series A Preferred Stock		Series B Preferred Stock		Common Stock		Additional Paid-In Capital	Accumulated Deficit	Total Stockholders' Deficit
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Series B-2 Preferred Stock Subscription Receivable	Shares	Amount	Shares	Amount	Shares	Amount	Additional Paid-In Capital	Accumulated Deficit	Total Stockholders' Deficit
Balance at December 31, 2020	-	$ -	-	$ -	-	$ -	-	$ -	$ -	169.125	$ -	109.267	$ -	1,287.625	$ -	$ 20,909	$ (15,319)	$ 5,590
Issuance of Series B-1 Preferred Stock, net of $16 of issuance costs	-	-	-	-	65.017	4,207	-	-	-	-	-	-	-	-	-	-	-	-
Exchange of Common Stock to Series A Preferred Stock	50.000	2,196	-	-	-	(1,045)	-	-	-	-	-	-	-	(50.000)	-	(500)	(650)	(1,150)
Reclassification of Series A and Series B Preferred Stock	169.125	7,427	109.267	7,128	-	-	-	-	-	(169.125)	-	(109.267)	-	-	-	(14,555)	-	(14,555)
Stock-based compensation expense	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	790	-	790
Net loss	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(3,640)	(3,640)
Balance at December 31, 2021	219.125	$ 9,623	109.267	$ 7,128	65.017	$ 3,162	-	$ -	$ -	-	$ -	-	$ -	1,237.625	$ -	$ 6,644	$ (19,609)	$ (12,965)
Issuance of Series B-2 Preferred Stock, net of $24 of issuance costs	-	-	-	-	-	-	193.644	12,144	(1,333)	-	-	-	-	-	-	-	-	-
Stock-based compensation expense	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	719	-	719
Exercise of options to purchase common stock	-	-	-	-	-	-	-	-	-	-	-	-	-	3.000	-	69	-	69
Net loss	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	(6,455)	(6,455)
Balance at December 31, 2022	219.125	$ 9,623	109.267	$ 7,128	65.017	$ 3,162	193.644	$ 12,144	$ (1,333)	-	$ -	-	$ -	1,240.625	$ -	$ 7,432	$ (26,064)	$ (18,632)

	Year Ended December 31,
	2022		2021
Cash flows from operating activities
Net loss	$	(6,455)	$	(3,640)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense		112		123
Non-cash lease expense		212		128
Stock-based compensation expense		719		790
Changes in operating assets and liabilities:
Accounts receivable		2,135		(2,135)
Payroll tax credit receivable		(126)		(72)
Prepaid expenses and other current assets		(9)		(51)
Operating lease liability		(172)		(108)
Deferred revenue		(117)		117
NIH liability		116		79
Accrued expenses and other current liabilities		122		(32)
Net cash used in operating activites		(3,463)		(4,801)
Cash flows from investing activities
Purchases of property and equipment		(151)		-
Net cash used in investing activities		(151)		-
Cash flows from financing activities
Net proceeds from issuance of Series B-1 Preferred Stock		-		4,207
Net proceeds from issuance of Series B-2 Preferred Stock		10,811		-
Proceeds from exercise of stock options		69		-
Net cash provided by financing activities		10,880		4,207
Net change in cash and cash equivalents		7,266		(594)
Cash and cash equivalents at beginning of period		4,735		5,329
Cash and cash equivalents at end of period	$	12,001	$	4,735

Noncash investing and financing activities
Issuance of Series B-2 Preferred Stock subscription	$	1,333	$	-
Purchase of equipment not yet paid	$	-	$	151
Increase in right-of-use asset due to lease modification	$	-	$	893
Increase in lease liability due to lease modification	$	-	$	893

	December 31, 2022
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds (included in cash equivalents)	$	1,004	$	1,004	$	—	$	—
Certificates of deposit (included in cash equivalents)		25		25		—		—
Total assets	$	1,029	$	1,029	$	—	$	—

Liabilities:
Contingent payment to NIH	$	461	$	—	$	—	$	461
Total liabilities	$	461	$	—	$	—	$	461

	December 31, 2021
	Total			Level 1		Level 2		Level 3
Assets:
Money market funds (included in cash equivalents)	$	4,502	$	4,502	$	—	$	—
Certificates of deposits (included in cash equivalents)		25		25		—		—
Total assets	$	4,527	$	4,527	$	—	$	—

Liabilities:
Contingent payment to NIH	$	345	$	—	$	—	$	345
Total liabilities	$	345	$	—	$	—	$	345

	Total
Balance at December 31, 2020	$	266
Change in fair value of contingent payment to NIH		79
Balance at December 31, 2021	$	345
Change in fair value of contingent payment to NIH		116
Balance at December 31, 2022	$	461

	December 31,
	2022		2021
Laboratory equipment	$	779	$	779
Less accumulated depreciation		(582)		(470)
Property and equipment, net	$	197	$	309

	Year Ended December 31,
	2022		2021
Operating lease cost	$	299	$	191
Variable lease cost		147		57
Total lease cost	$	446	$	248

	December 31,
	2022
2023	$	300
2024		309
2025		318
2026		328
2027		28
Thereafter		-
Total future minimum lease payments		1,283
Less imputed interest		(175)
Total operating lease liabilities	$	1,108

	Number of options	Weighted-average exercise price ($)		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in thousands)
Outstanding at December 31, 2021	153	$	18,755	7.88	$	650
Granted	9	$	23,005
Exercised	(3)	$	23,005
Forfeited	(7)	$	23,005
Outstanding at December 31, 2022	152	$	18,727	6.90	$	425

Vested at December 31, 2022	110	$	17,094	6.25	$	425
Vested and expected to vest at December 31, 2022	152	$	18,727	6.90	$	425

	Year Ended December 31,
	2022			2021
Risk-free interest rate		1.13% - 1.96%			0.85% - 1.45%
Dividend yield		—			—
Expected term		1.0 – 7.0			5.0 - 7.0
Expected volatility		95 %			95 %
Fair value of common stock	$	23,005	$		23,005 – 64,962

	Year Ended December 31,
	2022		2021
Loss before Income Tax	$	(6,455)	$	(3,640)
Tax provision (benefit) at federal statutory rate		(1,356)		(764)
State tax (net of federal benefit)		(421)		(237)
Stock Based Compensation		197		216
Non-deductible items and other permanent differences		-		(60)
Deferred Adjustments		-		-
Valuation Allowance		2,096		845
Research and development credit		(516)		-
Total Income Tax Provision	$	-	$	-

Deferred Tax Liabilities
Fixed Assets	$	(54)	$	(85)
Accrual to cash		-		(513)
Operating lease right-of-use assets		(271)		(329)
Gross deferred tax liabilities		(325)		(927)
Net deferred tax assets before valuation allowance		6,894		4,798
Valuation allowance		(6,894)		(4,798)
Net deferred tax assets	$	—	$	—

	September 30, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	6,875	$	12,001
Accounts receivable		994		994
Payroll tax credit receivable		248		351
Prepaid expenses and other current assets		51		59
Total current assets	$	8,168	$	13,405
Non-current assets:
Property and equipment, net		228		197
Right-of-use asset, net		891		983
Security deposit		25		25
Total assets	$	9,312	$	14,610
Liabilities, preferred stock and stockholders' deficit
Current liabilities:
Lease liability	$	273	$	228
NIH liability		569		461
Accrued expenses and other current liabilities		1,513		949
Total current liabilities	$	2,355	$	1,638
Non-current liabilities:
Lease liability, net of current		743		880
Total liabilities	$	3,098	$	2,518
Commitments and contingencies (Note 10)
Series A Preferred Stock; $0.01 par value, 220 authorized, 219.125 issued and outstanding as of September 30, 2023 and December 31, 2022		9,623		9,623
Series B Preferred Stock; $0.01 par value, 110 authorized, 109.267 issued and outstanding as of September 30, 2023 and December 31, 2022		7,128		7,128
Series B-1 Preferred Stock; $0.01 par value, 77 authorized, 65.017 issued and outstanding as of September 30, 2023 and December 31, 2022		3,162		3,162
Series B-2 Preferred Stock; $0.01 par value, 195 authorized, 193.644 issued and outstanding as of September 30, 2023 and December 31, 2022		12,144		12,144
Series B-2 Preferred Stock Subscription Receivable		-		(1,333)
Stockholders' deficit:
Common stock, $0.01 par value, 3,200 authorized, 1,244.625 issued and outstanding as of September 30, 2023 and 1,240.625 issued and outstanding as of December 31, 2022		-		-
Additional paid-in capital		7,985		7,432
Accumulated deficit		(33,828)		(26,064)
Total stockholders’ deficit	$	(25,843)	$	(18,632)
Total liabilities, preferred stock and stockholders' deficit	$	9,312	$	14,610

	Nine Months Ended September 30,
	2023		2022
Grant revenue:	$	-	$	1,035

Operating expenses:
Research and development		6,965		5,273
General and administrative		1,286		1,069
Total operating expenses		8,251		6,342
Loss from operations		(8,251)		(5,307)
Other income, net:
Interest income		311		20
Other income, net		176		101
Total other income		487		121
Net loss	$	(7,764)	$	(5,186)


	September 30, 2023		December 31, 2022
Laboratory equipment	$	879	$	779
Less accumulated depreciation		(651)		(582)
Property and equipment, net	$	228	$	197


	September 30, 2023		December 31, 2022
Accrued external research and development costs	$	1,317	$	758
Accrued professional and consulting services		48		60
Accrued payroll		42		98
Accrued equipment		50		—
Other current liabilities		56		33
Accrued expenses and other current liabilities	$	1,513	$	949

	September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:	$	227	$	187

	Number of options	Weighted-average exercise price ($)		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in thousands)
Outstanding at December 31, 2022	152	$	18,727	6.90	$	425
Granted	29	$	23,005
Exercised	(4)	$	23,005
Forfeited	(4)	$	23,005
Outstanding at September 30, 2023	173	$	19,246	6.60	$	425

Vested at September 30, 2023	119	$	17,541	5.72	$	425
Vested and expected to vest at September 30, 2023	173	$	19,246	6.60	$	425

	Selecta Biosciences, Inc.			Cartesian Therapeutics, Inc. (Old Cartesian)			Transaction Adjustments			Notes	Pro Forma Combined
ASSETS
Current assets:
Cash and cash equivalents	$	79,603		$	6,875		$	(9,423	)	B	$	137,305
								60,250		G
Accounts receivable		4,898			994			-				5,892
Unbilled receivables		1,875			-			-				1,875
Prepaid expenses and other current assets		3,493			299			-				3,792
Total current assets		89,869			8,168			50,827				148,864
Non-current assets:
Property and equipment, net		2,421			228			-				2,649
Right-of-use asset, net		10,339			891			-				11,230
Intangible assets		-			-			150,700		F		150,700
Goodwill		-			-			48,062		F		48,062
Other assets		3,405			25			-				3,430
TOTAL ASSETS	$	106,034		$	9,312		$	249,589			$	364,935
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses	$	14,012		$	2,082		$	4,895		A	$	20,989
Lease liability		1,787			273			-				2,060
Deferred revenue		4,140			-			-				4,140
Total current liabilities		19,939			2,355			4,895				27,189
Non-current liabilities:
Lease liability		8,694			743			-				9,437
Deferred revenue		3,981			-			-				3,981
Warrant liabilities		13,091			-			-				13,091
Deferred tax liability		-			-			34,853		F		15,854
								(18,999	)	J
Contingent value right obligation		-			-			340,300		H		340,300
Total liabilities		45,705			3.098			361,049				409,852
Commitments and contingencies
Convertible Preferred Stock		-			32,057			155,308		F		215,558
								60,250		G
								(32,057	)	I
Stockholders’ equity (deficit):
Common stock		15			-			-		F I		15
Additional paid-in capital		501,919			7,985			6,977		B		182,372
								619		D
								13,157		F
								(340,300	)	H
								(7,985	)	I
Accumulated deficit		(436,989	)		(33,828	)		(4,895	)	A		(438,246	)
								(16,400	)	B
								(619	)	D
								35,486		I
								18,999		J
Accumulated other comprehensive loss		(4,616	)		-			-				(4,616	)
Total stockholders’ equity (deficit)		60,329			(25,843	)		(294,961	)			(260,475	)
TOTAL LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)	$	106,034		$	9,312		$	249,589			$	364,935

	Amounts
Total purchase consideration
Common Stock	$	2,713
Series A Preferred Stock		155,308
Assumption of Cartesian stock options		10,444
Total purchase price	$	168,465

Allocation of the purchase consideration
Tangible assets	$	8,000
Liabilities assumed		(3,444	)
Intangible assets		150,700
Deferred tax liabilities		(34,853	)
Goodwill		48,062
Total purchase price allocation	$	168,465

Net income	$	24,712
Less: CVR distribution to participating securities		(37,550	)
Net loss allocable to shares of common stock, basic		(12,838	)
Net loss per share, basic	$	(0.08	)
Weighted-average shares of common stock outstanding, basic		151,482,194

Net loss allocable to shares of common stock, basic	$	(12,838	)
Less: change in fair value of dilutive warrants		(21,029	)
Net loss allocable to shares of common stock, diluted		(33,867	)
Net loss per share, diluted	$	(0.22	)
Weighted-average shares of common stock outstanding, diluted		152,282,286

	September 30, 2023		December 31, 2022
Warrants to purchase Common Stock		31,224,703		22,807,755
Series A preferred stock issued to Cartesian stockholders		384,930,724		384,930,724
Series A preferred stock issued in Financing		149,330,115		149,330,115
Common Stock options		23,306,661		23,306,661
Series A Preferred Stock options		14,112,299		14,112,299
Total		602,904,502		594,487,554