ROCKET PHARMACEUTICALS INC
For the period ended Mar 31, 2025. Filed May 8, 2025.
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Mar 31, 2025 · Filed May 8, 2025
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Operating Leases
On June 7, 2018, the Company entered into athree-year ESB Lease Agreement. In connection with the ESB Lease Agreement, the Company established an irrevocable standby letter of credit for $0.8 million. On March 26, 2021, the Company entered into Amendment No. 1 to the ESB Lease Agreement that extended the term of the lease agreement to June 30, 2024. On March 29, 2024, the Company entered into Amendment No. 2 to the ESB Lease Agreement that extended the term of the lease agreement to July 31, 2027. The letter of credit serves as the Company’s security deposit on the lease in which the landlord is the beneficiary and expires September 30, 2027.
The Company has a certificate of deposit of $0.8 million with a bank as collateral for the ESB Lease Agreement letter of credit which is classified as part of restricted cash in the Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024.
On December 1, 2022, in connection with the acquisition of Renovacor, the Company added operating leases for space at facilities in Hopewell, New Jersey and Cambridge, Massachusetts with remaining lease terms of approximately 10.3 and 1.3 years, respectively. The Company recognized total right-of-use assets of $3.8 million with corresponding total lease liabilities of $3.6 million at lease commencement dates. The Company intends to sublease the facilities in Hopewell, New Jersey and signed the first agreement to sublease one of these facilities in January 2024. Rental income received under sublease agreements was less than $0.1 million for the three months ended March 31, 2025 and 2024, respectively.
Rent expense excluding rental income was $0.3 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively.
The total restricted cash balance for the Company’s operating and finance leases as of March 31, 2025 and December 31, 2024 was $0.8 million.
The following table summarizes lease cost for the three months ended March 31, 2025 and 2024:
| Three Months Ended March 31, | ||
|---|---|---|
| Lease cost | 2025 | 2024 |
| Operating lease cost | $397 | $369 |
| Finance lease cost: | ||
| Amortization of right of use assets | 538 | 538 |
| Interest on lease liabilities | 472 | 471 |
| Total lease cost | $1,407 | $1,378 |
The following table summarizes the future lease payments of the Company’s operating lease liabilities on an undiscounted cash flow basis:
| Fiscal Year Ending December 31, | March 31, 2025 |
|---|---|
| 2025 (nine months) | $751 |
| 2026 | 1,005 |
| 2027 | 759 |
| 2028 | 522 |
| 2029 | 539 |
| Thereafter | 1,881 |
| Total lease payments | $5,457 |
| Less: interest | (1,356) |
| Total operating lease liabilities | $4,101 |
The following table summarizes the future lease payments of the Company’s finance lease liabilities on an undiscounted cash flow basis:
| Fiscal Year Ending December 31, | March 31, 2025 |
|---|---|
| 2025 (nine months) | $1,396 |
| 2026 | 1,911 |
| 2027 | 1,969 |
| 2028 | 2,028 |
| 2029 | 2,089 |
| Thereafter | 38,915 |
| Total lease payments | $48,308 |
| Less: interest | (27,057) |
| Total finance lease liability | $21,251 |
The following table summarizes the operating and financing lease liabilities and right-of-use assets as of March 31, 2025 and December 31, 2024:
| Leases | March 31, 2025 | December 31, 2024 |
|---|---|---|
| Operating right-of-use assets | $4,003 | $4,173 |
| Operating current lease liabilities | $1,006 | $1,001 |
| Operating noncurrent lease liabilities | 3,095 | 3,258 |
| Total operating lease liabilities | $4,101 | $4,259 |
| Finance right-of-use assets | $41,825 | $42,363 |
| Finance current lease liability | $1,870 | $1,856 |
| Finance noncurrent lease liability | 19,381 | 19,383 |
| Total finance lease liability | $21,251 | $21,239 |
| Three Months Ended March 31, | ||
|---|---|---|
| Other Information | 2025 | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows from operating leases | $364 | $333 |
| Cash flows from finance lease | $460 | $443 |
| Weighted-average remaining lease term - operating leases | 6.5 years | 7.1 years |
| Weighted-average remaining lease term - finance lease | 19.4 years | 20.4 years |
| Weighted-average discount rate - operating leases | 8.82% | 8.82% |
| Weighted-average discount rate - finance lease | 8.96% | 8.96% |
OK
Commitments and Contingencies
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