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Leases

12 Months Ended

Dec. 31, 2024

5. Leases

Effective April 2024, the Company began utilizing the Warren Premises, as described below, as its principal office space. The Company also leases laboratory space in Bridgewater, New Jersey and other locations throughout the United States and office space in various countries for international employees primarily through workspace providers. The Company’s lease for office space in South Plainfield, New Jersey expired in August 2024.

The Company has a lease agreement (the “Warren Lease”) with Warren CC Acquisitions, LLC (the “Warren Landlord”). The lease initially related to two entire buildings comprised of approximately 360,000 square feet of shell condition, modifiable space (the “Warren Premises”) at a facility located in Warren, New Jersey. The rental term of the Warren Lease commenced on June 1, 2022, with an initial term of seventeen years (the “Warren Initial Term”), followed by three consecutive five-year renewal periods at the Company’s option. The aggregate base rent for the Warren Initial Term was approximately $163.0 million; provided, however, that if the Company is not subject to an Event of Default (as defined in the Warren Lease), the Company was entitled to a base rent abatement over the first three years of the Warren Initial Term of approximately $18.6 million, reducing the Company’s total base rent obligation to $144.4 million.

On December 31, 2024, the Company and the Warren Landlord entered into a First Amendment to Lease Agreement (the “Warren Lease Amendment”), which amends certain aspects of the Warren Lease dated as of May 24, 2022 between the Company and the Warren Landlord. Pursuant to the Warren Lease Amendment, as of the Surrender Effective Date (as defined in the Warren Lease Amendment) the Company is now only leasing one building comprised of approximately 180,000 square feet. The Company will continue paying rent as scheduled, along with certain maintenance and utilities costs, through the end of December 2027, after which the Company will pay a reduced aggregate base rent of $57.7 million, reflecting a reduction of $57.7 million to initial total base rent obligation.

Under the Warren Lease Amendment, the Company’s allowance provided by the Landlord to be used towards certain improvements to the Warren Premises is reduced from $36.1 million to $23.9 million, which is to be paid in accordance with the Warren Lease. In connection with the Warren Lease Amendment the letter of credit associated with the Warren Lease was increased from $8.1 million to $10.0 million.

As the Warren Lease Amendment partially terminated the existing Warren Lease, it was accounted for as a lease modification in accordance with ASC 842-10-25-13. The ROU liability was remeasured using an incremental borrowing rate at the date of modification of 7.8%, and the ROU asset was remeasured based on the proportionate change in the lease liability, which resulted in gain on modification of $5.5 million. The gain is included within tangible asset impairment and losses (gains) on transactions, net on the Company’s consolidated statements of operations.

The Company also leases office and laboratory space at a facility located in Hopewell Township, New Jersey pursuant to a Lease Agreement (the “Hopewell Lease”) with Hopewell Campus Owner LLC. In connection with the disposition of certain assets related to gene therapy manufacturing, on June 17, 2024, the Company and Hopewell Campus Owner LLC entered into an amendment and restatement of the Hopewell Lease (the “Hopewell Lease Amendment”). At its inception, the Hopewell Lease was determined to have four separate lease components. The Hopewell Lease Amendment terminated three of the four lease components, reducing the leased space from 220,500 square feet to 93,461 square feet and

significantly reducing the corresponding rent subject to the lease. The Company did not pay any termination fees in connection with the Hopewell Lease Amendment. As a result of the three terminated lease components, the related ROU asset was written off, the lease liability was derecognized, and the Company recognized a gain of $2.2 million during the year ended December 31, 2024. The gain is included within tangible asset impairment and losses (gains) on transactions, net on the Company’s consolidated statements of operations. The Hopewell Lease Amendment did not fully or partially terminate the remaining lease component, which was therefore remeasured using an incremental borrowing rate at the date of modification of 7.5%, which resulted in an increase of the ROU asset and operating lease liability of $1.6 million, respectively. In connection with the Hopewell Lease Amendment, $2.5 million of the letter of credit was returned to the Company.

The Company also has a finance lease related to its commercial manufacturing agreement with MassBiologics of the University of Massachusetts Medical School (“MassBio”). As of December 31, 2024, the balance of the finance lease liabilities-current and finance lease liabilities-non-current are $3.0 million and $15.6 million, respectively, and are directly related to the Company’s MassBio agreement. As of December 31, 2023, the balance of the finance lease liabilities-current and finance lease liabilities non-current were $3.0 million and $17.2 million, respectively. Additionally, during the years ended December 31, 2024 and December 31, 2023, the Company recorded finance lease costs of $1.4 million and $1.5 million, respectively, related to interest on the lease liability.

The Company also leases certain vehicles, lab equipment, and office equipment under operating leases. The Company’s operating leases have remaining lease terms ranging from 0.1 years to 14.4 years and certain leases include renewal options to extend the lease for up to 15 years. Rent expense was $24.9 million, $29.0 million, and $25.2 million for the years ended December 31, 2024, 2023 and 2022.

The components of lease expense were as follows:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022

Operating Lease Cost
Fixed lease cost	$	19,264	$	21,952	$	19,804
Variable lease cost		4,661		5,846		4,557
Short-term lease cost		1,022		1,186		808
Total operating lease cost	$	24,947	$	28,984	$	25,169

Total operating lease cost is a component of operating expenses on the consolidated statements of operations.

Supplemental lease term and discount rate information related to leases was as follows:


	December 31, 2024		December 31, 2023
Weighted-average remaining lease terms - operating leases (years)	11.62		11.55
Weighted-average discount rate - operating leases	7.64	%	8.69	%
Weighted-average remaining lease terms - finance lease (years)	8.01		9.01
Weighted-average discount rate - finance lease	7.80	%	7.80	%

Supplemental cash flow information related to leases was as follows:


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	16,924	$	15,338	$	14,736
Financing cash flows from finance lease		1,490		1,379		1,276
Operating cash flows from finance lease		1,510		1,621		1,724

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	6,462	$	—	$	35,817

Changes due to lease modification and termination:
Net decrease in right-of-use assets	$	33,105	$	—	$	—
Net decrease in operating lease liabilities		44,184		—		—

Future minimum lease payments under non-cancelable leases as of December 31, 2024 were as follows:


	Operating Leases		Finance Lease
2025	$	15,986	$	3,000
2026		16,425		3,000
2027		13,902		3,000
2028		7,620		3,000
2029 and thereafter		73,732		12,000
Total lease payments		127,665		24,000
Less: Imputed Interest expense		42,355		5,426
Total	$	85,310	$	18,574