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 Current Good Manufacturing Practice (“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.

Estimated rent payments for the NJ Lease Agreement are $1.2 million per annum, payable in monthly installments, depending upon the nature of the leased space, 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 December 31, 2023 and 2022.

On June 7, 2018, the Company entered into a three-year lease agreement for office space in the Empire State Building in New York, NY (the “ESB Lease Agreement”). In connection with the ESB Lease Agreement, the Company established an irrevocable standby letter of credit (the “Empire LOC”) for $0.9 million. On March 26, 2021, the Company entered into Amendment No. 1 to the ESB Lease Agreement (“ESB Lease Amendment”) that extended the term of the lease agreement to June 30, 2024, reduced the rent payments going forward, and reduced the Empire LOC to $0.8 million. The Empire LOC serves as the Company’s security deposit on the lease in which the landlord is the beneficiary and expires August 29, 2024.

The Company has a certificate of deposit of $0.8 million with a bank as collateral for the Empire LOC which is classified as part of restricted cash in the consolidated balance sheets as of December 31, 2023, and 2022, respectively.

On January 4, 2018, in connection with the Reverse Merger with Inotek, the Company assumed an operating lease for Inotek’s former headquarters in Lexington, Massachusetts, with a term which ended on February 28, 2023. In July 2018, the Company signed an agreement to sublease a portion of the Lexington, Massachusetts space and in September 2018, the Company signed an agreement to sublease the remaining portion of the Lexington, Massachusetts space. Rental income received under the sublease agreement totaled $0.3 million for the year ended December 31, 2023, and $0.4 million for the years ended December 31, 2022 and 2021. These amounts were netted against rent expense in the consolidated statements of operations. A security deposit of $0.2 million was returned to the Company in April 2023.

On November 15, 2022, the Company entered into a lease agreement with a lease term until October 31, 2024, for laboratory space in Madrid, Spain. The lease commenced on April 1, 2023 and the Company recognized a right-of-use asset and corresponding lease liability of approximately $0.2 million each.

On December 1, 2022, in connection with the Renovacor acquisition (see Note 17 “Renovacor Acquisition”), the Company acquired the Renovacor operating leases for space at facilities in Hopewell, New Jersey and Cambridge, Massachusetts with remaining lease terms of approximately 10.25 and 1.3 years, respectively. As of December 31, 2023, lease commencement dates have occurred for all leases and 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, which include right-of-use assets of $2.7 million and lease liabilities of $2.6 million for leases that commenced in 2023. The Company intends to sublease the facilities in Hopewell, New Jersey and signed an agreement to sublease one of these facilities in January 2024.

Rent expense was $2.3 million, $1.2 million, and $1.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The total restricted cash balance for the Company's operating and finance leases as of December 31, 2023 and 2022 was $0.8 million.

Operating lease cost was $1.4 million, $0.8 million, and $0.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The following table summarizes lease cost for the years ended December 31, 2023, 2022 and 2021:


	For the Years Ended December 31,
Lease cost	2023		2022		2021
Operating lease cost	$	1,377	$	818	$	645
Finance lease cost:
Amortization of right of use assets		2,154		2,139		2,140
Interest on lease liabilities		1,875		1,861		1,845
Total lease cost	$	5,406	$	4,818	$	4,630

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


Fiscal Year Ending December 31,	December 31, 2023
2024	$	931
2025		567
2026		571
2027		506
2028		522
Thereafter		2,419
Total lease payments	$	5,516
Less: interest		(1,618	)
Total operating lease liabilities	$	3,898


Fiscal Year Ending December 31,	December 31, 2023
2024	$	1,791
2025		1,856
2026		1,912
2027		1,969
2028		2,028
Thereafter		41,003
Total lease payments	$	50,559
Less: interest		(29,415	)
Total finance lease liability	$	21,144

The following table summarizes the operating and financing lease liabilities and right-of-use assets as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
Operating right-of-use assets	$	3,901	$	1,972

Operating current lease liabilities	$	925	$	773
Operating noncurrent lease liabilities		2,973		1,088
Total operating lease liabilities	$	3,898	$	1,861

Finance right-of-use assets	$	44,517	$	46,664

Finance current lease liability	$	1,791	$	1,736
Finance noncurrent lease liability		19,353		19,269
Total finance lease liability	$	21,144	$	21,005


	For the Years Ended December 31,
Other information	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,229		$	938		$	655
Cash flows from finance lease	$	1,736		$	1,689		$	1,644
Weighted-average remaining lease term - operating leases	8.0 years			4.8 years			2.5 years
Weighted-average remaining lease term - finance lease	20.7 years			21.7 years			22.7 years
Weighted-average discount rate - operating leases		8.32	%		6.44	%		4.46	%
Weighted-average discount rate - finance lease		8.96	%		8.69	%		8.96	%