ROCKET PHARMACEUTICALS, INC.

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.

During the year ended December 31, 2025, the Company began exploring a sublease of the ESB lease and entered negotiations with a sublease tenant. The Company reviewed the recoverability of the related right-of-use asset and determined that the changes in the intended use of the lease represented an impairment indicator as negotiations indicated that the carrying value of the right-of-use asset may not be recoverable. The Company compared the expected future undiscounted cash flows from the negotiations of a sublease to the carrying value of the right-of-use asset and determined that it was not recoverable. The Company calculated the fair value based on the present value of the expected cash flows from a sublease based on the negotiations with a sublease tenant and compared this estimated fair value to its carrying value. This resulted in a right-of-use asset impairment charge of approximately $0.3 million. The fair value was estimated using level 3 inputs based on an income approach by converting estimated future cash inflows from a sublease to a single present value. Estimated cash flows were discounted at a rate of 8.6% commensurate with the inherent risks associated with the lease asset to arrive at an estimated fair value. The ESB sublease was completed in April 2026. In conjunction with the completion of the sublease, the Company received a security deposit of $68,000.

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, 2026 and December 31, 2025.

In connection with the acquisition of Renovacor, the Company added operating leases for space at facilities in Hopewell, New Jersey. 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, 2026 and 2025, respectively.

Rent expense excluding rental income was $0.2 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively.

The total restricted cash balance for the Company’s operating and finance leases as of March 31, 2026 and December 31, 2025 was $0.8 million.

The following table summarizes lease cost for the three months ended March 31, 2026 and 2025:

The following table summarizes the future lease payments of the Company’s operating lease liabilities on an undiscounted cash flow basis:

The following table summarizes the future lease payments of the Company’s finance lease liability on an undiscounted cash flow basis:

The following table summarizes the operating and financing lease liabilities and right-of-use assets as of March 31, 2026 and December 31, 2025:

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Commitments and Contingencies