The Company has a lease for a facility in Cranbury, New Jersey, consisting of 103,720 square feet of space including areas for offices, process development, research, and development laboratories and 50,000 square feet dedicated to AAV cGMP manufacturing facilities to support the Company’s pipeline (such lease, as amended, the “NJ Lease Agreement”). The NJ Lease Agreement has a 15-year term from September 1, 2019, with an option to renew for two consecutive five-year renewal terms. The renewal periods were included in the lease term as it was determined at commencement date that it was reasonably certain to exercise this option.

Estimated rent payments for the NJ Lease Agreement are $1.2 million per annum, payable in monthly installments, and subject to annual base rent increases of 3%. The total commitment under the lease is estimated to be approximately $29.3 million over the 15-year term of the lease. The Company paid a cash security deposit of $0.3 million to the landlord in connection with the NJ Lease Agreement which has been reflected as part of deposits in the Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025.

Operating Leases

During the year ended December 31, 2025, the Company was negotiating a sublease of the ESB lease 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. This resulted in a right-of-use asset impairment charge of approximately $0.3 million in 2025. The ESB sublease was completed in April 2026. In conjunction with the completion of the sublease, the Company received a security deposit of approximately $0.1 million. Rental income received under the sublease agreement was less than $0.1 million for the three and six months ended June 30, 2026.

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 June 30, 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 and six months ended June 30, 2026 and 2025, respectively.

Rent expense excluding rental income was $0.3 million and $0.5 million for the three and six months ended June 30, 2026, respectively. Rent expense excluding rental income was $0.3 million and $0.6 million for the three and six months ended June 30, 2025, respectively.

The total restricted cash balance for the Company’s operating and finance leases as of June 30, 2026 and December 31, 2025 was $0.8 million.

The following table summarizes lease cost for the six months ended June 30, 2026 and 2025:


	Six Months Ended June 30,
Lease cost	2026		2025
Operating lease cost	$	454	$	523
Finance lease cost:
Amortization of right of use asset		1,077		1,077
Interest on lease liabilities		946		945
Total lease cost	$	2,477	$	2,545

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,	Amounts
2026 (six months)	$	513
2027		872
2028		638
2029		627
2030		557
Thereafter		1,323
Total lease payments	$	4,530
Less: interest		(1,003	)
Total operating lease liabilities	$	3,527

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


Fiscal Year Ending December 31,	Amounts
2026 (six months)	$	963
2027		1,969
2028		2,028
2029		2,089
2030		2,152
Thereafter		36,763
Total lease payments	$	45,964
Less: interest		(24,693	)
Total finance lease liability	$	21,271

The following table summarizes the operating and financing lease liabilities and right-of-use assets as of June 30, 2026 and December 31, 2025:


Leases	June 30, 2026		December 31, 2025
Operating right-of-use assets	$	3,190	$	3,210

Operating current lease liabilities	$	1,039	$	1,003
Operating noncurrent lease liabilities		2,488		2,600
Total operating lease liabilities	$	3,527	$	3,603

Finance right-of-use assets	$	39,132	$	40,209

Finance current lease liability	$	1,940	$	1,912
Finance noncurrent lease liability		19,331		19,362
Total finance lease liability	$	21,271	$	21,274

Finance Lease

Operating Leases