ROCKET PHARMACEUTICALS, INC.

Interest and other income for the three and six months ended June 30, 2026 and 2025 was related to interest earned from investments and cash equivalents.

Income tax expense for the three and six months ended June 30, 2026 was $8.6 million in each period, compared with no income tax expense in the corresponding 2025 periods. The net income tax expense of $8.6 million recognized for the six months ended June 30, 2026 primarily reflects the expected tax associated with the gain on the sale of the Company’s PRV, including the expected utilization of current-year and certain historical tax attributes.

Critical Accounting Policies and Significant Judgments and Estimates

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. A valuation allowance is required when, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Judgment is required to determine whether certain income tax positions are more likely than not to be sustained. These judgments may change from period to period as facts and circumstances change. We make estimates and judgments about our future taxable income that are based on assumptions that are consistent with our plans and estimates. Should the actual amounts differ from the estimates, the amount of our valuation allowance could be materially impacted. Changes in these estimates may result in significant increases or decreases to our tax provision in a period in which such estimates are changed, which would affect net income or loss.

We consider future taxable income and our historical performance in assessing the need for a valuation allowance. We periodically reassess the need for a valuation allowance and if we expect to realize deferred tax assets for which we have previously recorded a valuation allowance, we will reduce the valuation allowance in the period in which such determination is first made.

Due to the Company’s lack of earnings history, we determined that a full valuation allowance was required to offset the net deferred tax assets, (exclusive of the net deferred tax liabilities related to indefinite lived intangibles), at December 31, 2025. In assessing the need for a valuation allowance as of June 30, 2026, management considered the gain on the sale of the PRV as a significant source of positive evidence supporting future taxable income. Because the sale agreement was executed on April 26, 2026, the anticipated gain was incorporated into the valuation allowance analysis. As a result, the Company recognized an income tax benefit related to the expected utilization of current-year losses and the release of valuation allowance associated with certain historical losses. This benefit was substantially offset by the corresponding income tax expense associated with the anticipated gain on the PRV sale.

There have been no other material changes in our critical accounting policies and estimates in the preparation of our consolidated financial statements during the six months ended June 30, 2026 compared to those disclosed in our 2025 Form 10-K.