0001140361-21-016643 | 10-Q | XBRL Viewer | Rocket Pharmaceuticals INC

Subsequent Events

3 Months Ended

Mar. 31, 2021

16.	Subsequent Events

On April 26, 2021, the Company completed a full redemption of its 2022 Convertible Notes prior to the redemption date. Holders of approximately $38.4 remaining million principal amount of the 2022 Convertible Notes converted such notes in accordance with the terms of the governing indenture into approximately 1.3 million shares of the Company’s common stock and cash in lieu of fractional shares. Following the redemption, approximately $5.2 million aggregate principal amount of the 2021 Convertible Notes remain outstanding.

Commitments and Contingencies, Details of Operating and Finance Lease (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Lease cost [Abstract]
Operating lease cost	$ 196
Finance lease cost [Abstract]
Amortization of right of use assets	535
Interest on lease liabilities	459
Total lease cost	1,190
Maturity of operating lease liabilities [Abstract]
2021	544
2022	860
2023	488
2024	208
Total lease payments	2,100
Less: interest	(118)
Total operating lease liabilities	1,982
Maturity of finance lease liability [Abstract]
2021	1,235
2022	1,689
2023	1,736
2024	1,791
Thereafter	48,768
Total lease payments	55,219
Less: interest	(34,536)
Total finance lease liability	20,683
Lease assets and liabilities [Abstract]
Operating right-of-use assets	1,787	$ 914
Operating current lease liabilities	683	626
Operating noncurrent lease liabilities	1,299	498
Total operating lease liabilities	1,982
Finance right-of-use assets	50,311	50,521
Finance current lease liability	1,655	1,644
Finance noncurrent lease liability	19,028	$ 18,988
Total finance lease liability	20,683
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases	226
Cash flows from finance lease	$ 408
Weighted-average remaining lease term - operating leases	2 years 8 months 12 days
Weighted-average remaining lease term - finance lease	23 years 4 months 24 days
Weighted-average discount rate - operating leases	4.90%
Weighted-average discount rate - finance lease	8.96%

Stockholders' Equity (Details) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Shareholders' Equity Disclosure [Abstract]
Warrants outstanding (in shares)	7,051	603,386
Warrant One [Member]
Shareholders' Equity Disclosure [Abstract]
Exercise price of warrants (in dollars per share)	$ 24.82
Warrants expiry date	Jun. 28, 2023
Warrant Two [Member]
Shareholders' Equity Disclosure [Abstract]
Exercise price of warrants (in dollars per share)		$ 57.11
Warrants expiry date		Dec. 21, 2030

Related Party Transactions

3 Months Ended

Mar. 31, 2021

Related Party Transactions

14.	Related Party Transactions

During April 2018, the Company entered into an agreement with a member of the Board of Directors for business development consulting services. Payments for the services under the agreement are $28 per quarter, and the Company may terminate the agreement with 14 days’ notice. The Company incurred expenses of $28 during the three months ended March 31, 2021 and 2020, relating to services provided under this agreement.

In June 2020, the Company entered into a consulting agreement with a member of the Board of Directors for pipeline development, new asset evaluation, and corporate strategy. In lieu of cash for services to be provided under the consulting agreement during its one-year term, the Company granted the board member options to purchase 9,784 options with a fair value of $0.1 million.

In October 2020, the Company entered into a consulting agreement with the spouse of one of the Company’s executive officers for information technology advisory services. In exchange for the services provided under the agreement, the Company granted 10,000 restricted stock units which vest over a three-year period.

In December 2020, the Company entered into a consulting agreement with a related party. Pursuant to the consulting agreement, the related party provides certain business development and asset identification consulting services to the Company. The term of the consulting agreement is three years and may be terminated with 60 days’ notice by either party. In exchange for the business development services to be provided under the agreement, the Company issued a warrant exercisable for 603,386 shares of common stock. Pursuant to the consulting agreement, the related party is entitled to receive additional warrants exercisable for common stock upon identification of new assets for the Company to in-license. There were no warrants issued for the three months ended March 31, 2021.

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property and Equipment [Abstract]
Property and equipment, gross	$ 22,553		$ 21,252
Less: accumulated depreciation and amortization	(2,720)		(2,046)
Property and equipment, net	19,833		19,206
Depreciation and amortization expense	674	$ 118
Laboratory Equipment [Member]
Property and Equipment [Abstract]
Property and equipment, gross	8,770		7,807
Machinery and Equipment [Member]
Property and Equipment [Abstract]
Property and equipment, gross	9,973		9,933
Computer Equipment [Member]
Property and Equipment [Abstract]
Property and equipment, gross	218		218
Furniture and Fixtures [Member]
Property and Equipment [Abstract]
Property and equipment, gross	1,867		1,880
Leasehold Improvements [Member]
Property and Equipment [Abstract]
Property and equipment, gross	29		29
Internal use Software [Member]
Property and Equipment [Abstract]
Property and equipment, gross	$ 1,696		$ 1,385

Net Loss Per Share

3 Months Ended

Mar. 31, 2021

Net Loss Per Share [Abstract]

Net Loss Per Share

10.	Net Loss Per Share

Basic and diluted net loss per share attributable to common stockholders was calculated as follows:

	Three Months Ended March 31,
	2021			2020

Numerator:
Net loss attributable to common stockholders	$	(40,179	)	$	(24,664	)
Denominator:
Weighted-average common shares outstanding - basic and diluted		61,574,405			54,883,120
Net loss per share attributable to common stockholders - basic and diluted	$	(0.65	)	$	(0.45	)

The Company excluded the following potential shares of common stock, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:

	Three Months Ended March 31,
	2021		2020
Shares issuable upon conversion of the 2021 Convertible Notes		160,536		394,327
Shares issuable upon conversion of the 2022 Convertible Notes		1,195,449		1,226,621
Warrants exercisable for common shares		610,437		14,102
Options to purchase common shares		10,892,830		10,538,890
		12,859,252		12,173,940

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 252,540		$ 297,098
Restricted cash	1,461		1,568
Total	254,001	$ 192,045	$ 298,666	$ 186,908
NYS Life Sciences Research and Development Tax Credit [Abstract]
Research and development incentive income	$ 500	$ 0

Convertibles Notes

3 Months Ended

Mar. 31, 2021

Convertibles Notes [Abstract]

Convertibles Notes

7.	Convertibles Notes

2021 Convertible Notes

On January 4, 2018, in connection with its reverse merger with Inotek Pharmaceuticals, Corporation (“Inotek”), the Company assumed the obligations of Inotek under its outstanding convertible notes, with an aggregate principal amount of $52.0 million, (the “2021 Convertible Notes”). The 2021 Convertible Notes were issued in 2016 and were scheduled to mature on August 1, 2021 (the “Maturity Date”). The 2021 Convertible Notes are unsecured and accrue interest at a rate of 5.75% per annum and interest is payable semi-annually on February 1 and August 1 of each year. Each holder of the 2021 Convertible Notes (“Holder”) has the option until the close of business on the second business day immediately preceding the Maturity Date to convert all, or any portion, of the 2021 Convertible Notes held by it at a conversion rate of 31.1876 shares of the Company’s common stock per $1.00 principal amount of 2021 Convertible Notes (the “Conversion Rate”) which is $32.08 per share. The Conversion Rate is subject to adjustment from time to time upon the occurrence of certain events, including the issuance of stock dividends and payment of cash dividends.

The Company, at its option, may redeem for cash all or any portion of the 2021 Convertible Notes if the last reported sale price of a share of the Company’s common stock is equal to or greater than 200% of the Conversion Rate for the 2021 Convertible Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending within the five trading days immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the 2021 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

The 2021 Convertible Notes are considered a hybrid financial instrument consisting of a fixed interest rate “host” and various embedded features that required evaluation as potential embedded derivatives under FASB ASC 815, Derivatives and Hedging (“ASC 815”). Based on the nature of the host instrument and the embedded features, management concluded that none of the conversion, put and redemption features required bifurcation and separate accounting from the host instrument. The Company determined that the Additional Interest was an embedded derivative that contains non-credit related events of default. As a result, the Additional Interest feature required bifurcation and separate accounting under ASC 815. Based on the amount of Additional Interest that would be owed and the likelihood of occurrence, the Company estimated the fair value of the Additional Interest feature to be insignificant upon issuance and as of March 31, 2021 and December 31, 2020. As of March 31, 2021, the stated interest rate was 5.75%, and the effective interest rate was 15.3%.

2022 Convertible Notes

On February 20, 2020 and June 5, 2020, the Company entered into separate, privately negotiated exchange agreements (the “Exchange Agreements”) with certain holders of the 2021 Convertible Notes. Pursuant to the Exchange Agreements, on February 20, 2020, the Company exchanged approximately $39.35 million aggregate principal amount of the 2021 Convertible Notes (representing approximately 76% of the aggregate outstanding principal amount of the 2021 Convertible Notes) for (a) approximately $39.35 million aggregate principal amount of 6.25% Convertible Senior Notes due August 2022 (the “2022 Convertible Notes”) (an exchange ratio equal to 1.00 2022 Convertible Note per exchanged 2021 Convertible Note) and (b) $0.1 million to pay the accrued and unpaid interest on the exchanged 2021 Convertible Notes from February 1, 2020, to February 20, 2020, the closing date of the February 20, 2020 exchange transactions. Additionally, the Company repurchased 3,000 shares of its common stock that have been retired for an aggregate amount of $71,670 from certain holders of the 2021 Convertible Notes participating in the exchange transactions in privately negotiated, private transactions.

Also pursuant to the Exchange Agreements, on June 12, 2020, the Company exchanged $7.5 million aggregate principal amount of the 2021 Convertible Notes for (a) $7.5 million aggregate principal amount of its newly issued 6.25% Convertible Senior Notes due 2022 (an exchange ratio equal to 1.00 2022 Convertible Notes per exchanged 2021 Convertible Notes) and (b) approximately $11,000 to pay the accrued and unpaid interest on the exchanged 2021 Convertible Notes from, and including, February 1, 2020, to, but excluding, the closing date of the exchange transaction, adjusted to take into account the unearned accrued interest on the 2022 Convertible Notes from, and including, February 20, 2020, to, but excluding, the closing date of the exchange transaction.

The 2022 Convertible Notes were issued in a private placement exempt from registration in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The 2022 Convertible Notes issued in the exchange transaction were issued as additional notes pursuant to the Indenture, dated as of August 5, 2016, between the Company and Wilmington Trust, National Association, as trustee, as supplemented by the Second Supplemental Indenture, dated as of February 20, 2020, governing the 2022 Convertible Notes.

The conversion rate for the 2022 Convertible Notes is initially 31.1876 shares of the Company’s common stock per 1.00 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $32.06 per share of common stock and is subject to adjustment under the terms of the 2022 Convertible Notes. The Company may redeem for cash all or any portion of the 2022 Convertible Notes, at its option, if the last reported sale price of its common stock is equal to or greater than 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending within the five trading days immediately preceding the date on which the Company provides written notice of redemption. The 2022 Convertible Notes Indenture contains customary terms and covenants and events of default. As of March 31, 2021, the stated interest rate was 6.25%, and the effective interest rate was 15.3%.

In December 2020, $8.5 million principal amount, representing a carrying value of $7.6 million of the 2022 Convertible Notes was converted into 298,562 shares of the Company’s common stock. On April 26, 2021, the Company called for the redemption of the remaining $38.4 million principal balance of the 2022 Convertible Notes (See Note 16) as the Company’s stock price traded above the Conversion Rate for at least 20 trading days during a 30-day consecutive trading period.

The table below summarizes the carrying value of the 2021 Convertible Notes as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Principal amount	$	5,150		$	5,150
Discount		(164	)		(275	)
Carrying value	$	4,986		$	4,875

Accretion of the 2021 Convertible Notes discount was $0.1 million and $0.6 million for the three months ended March 31, 2021 and 2020, respectively.

The table below summarizes the carrying value of the 2022 Convertible Notes as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Principal amount	$	38,350		$	38,350
Discount		(2,806	)		(3,284	)
Carrying value	$	35,544		$	35,066

Accretion of the 2022 Convertible Notes discount was $0.5 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively.

Convertibles Notes (Tables)

3 Months Ended

Mar. 31, 2021

2021 Convertible Notes [Member]

Debt Instrument [Line Items]

Carrying Value of Convertible Notes

The table below summarizes the carrying value of the 2021 Convertible Notes as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Principal amount	$	5,150		$	5,150
Discount		(164	)		(275	)
Carrying value	$	4,986		$	4,875

2022 Convertible Notes [Member]

Debt Instrument [Line Items]

Carrying Value of Convertible Notes

The table below summarizes the carrying value of the 2022 Convertible Notes as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Principal amount	$	38,350		$	38,350
Discount		(2,806	)		(3,284	)
Carrying value	$	35,544		$	35,066

Commitments and Contingencies, Operating Leases (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 26, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Jun. 07, 2018
Operating Leases [Abstract]
Rent expense		$ 300	$ 300
Restricted cash		$ 1,461		$ 1,568
ESB Lease Agreement [Member]
Operating Leases [Abstract]
Term of lease agreement		3 years
Letter of credit					$ 900
Letter of credit expiration date		Jun. 30, 2020
LOC automatic renewal period		1 year
Lease expiration date		Jul. 31, 2021
Certificate of deposit		$ 800		900
ESB Lease Agreement Amendment [Member]
Operating Leases [Abstract]
Letter of credit		800
Lease expiration date	Jun. 30, 2024
Operating lease right of use asset, adjustment	$ 1,100
Certificate of deposit		$ 800
Inotek Lexington Massachusetts Lease Agreement [Member]
Operating Leases [Abstract]
Lease expiration date		Feb. 28, 2023
Rental income received under sublease agreement		$ 100	$ 100
Operating and Finance Leases [Member]
Operating Leases [Abstract]
Restricted cash		$ 1,000		$ 1,100

Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2021

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

4.	Fair Value of Financial Instruments

Items measured at fair value on a recurring basis are the Company’s investments. The following table sets forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy:

	Fair Value Measurements as of March 31, 2021 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market mutual funds	$	235,899	$	-	$	-	$	235,899
		235,899		-		-		235,899

Investments:
United States Treasury securities		107,566		-		-		107,566
Corporate Bonds		-		100,247		-		100,247
Municipal Bonds		-		6,000		-		6,000
		107,566		106,247		-		213,813

	$	343,465	$	106,247	$	-	$	449,712

	Fair Value Measurements as of December 31, 2020 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market mutual funds	$	193,312	$	-	$	-	$	193,312
United States Treasury securities		62,497		-		-		62,497
Corporate Bonds		-		501		-		501
Agency Bonds		-		8,015		-		8,015
		255,809		8,516		-		264,325

Investments:
United States Treasury securities		112,328		-		-		112,328
Corporate Bonds		-		63,710		-		63,710
Municipal Bonds		-		6,000		-		6,000
Agency Bonds		-		3,583		-		3,583
		112,328		73,293		-		185,621

	$	368,137	$	81,809	$	-	$	449,946

The Company classifies its money market mutual funds and U.S. Treasury securities as Level 1 assets under the fair value hierarchy, as these assets have been valued using quoted market prices in active markets without any valuation adjustment. The Company classifies its Government, Corporate, Municipal and Agency Bonds as Level 2 assets as these assets are not traded in an active market and have been valued through a third-party pricing service based on quoted prices for similar assets.

The fair value of the 2021 Convertible Notes and the 2022 Convertible Notes as of March 31, 2021 was $8.1 million and $53.1 million, respectively (see Note 7).

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2021

Net Loss Per Share [Abstract]

Basic and Diluted Net Loss Per Share

Basic and diluted net loss per share attributable to common stockholders was calculated as follows:

	Three Months Ended March 31,
	2021			2020

Numerator:
Net loss attributable to common stockholders	$	(40,179	)	$	(24,664	)
Denominator:
Weighted-average common shares outstanding - basic and diluted		61,574,405			54,883,120
Net loss per share attributable to common stockholders - basic and diluted	$	(0.65	)	$	(0.45	)

Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share

	Three Months Ended March 31,
	2021		2020
Shares issuable upon conversion of the 2021 Convertible Notes		160,536		394,327
Shares issuable upon conversion of the 2022 Convertible Notes		1,195,449		1,226,621
Warrants exercisable for common shares		610,437		14,102
Options to purchase common shares		10,892,830		10,538,890
		12,859,252		12,173,940

Risks and Liquidity (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
Risks and Liquidity (Details) - USD ($) $ in Thousands	Apr. 26, 2021	Mar. 31, 2021	Dec. 31, 2020	Feb. 20, 2020
Risks and Liquidity [Abstract]
Accumulated deficit		$ (363,022)	$ (322,843)
Cash, cash equivalents and investments		$ 466,400
2022 Convertible Notes [Member]
Shareholders' Equity Disclosure [Abstract]
Convertible senior notes, interest rate, stated percentage		6.25%		6.25%
Debt instrument maturity date		Aug. 31, 2022
2022 Convertible Notes [Member] \| Subsequent Event [Member]
Shareholders' Equity Disclosure [Abstract]
Redemption of principal balance	$ 38,400
Convertible senior notes, interest rate, stated percentage	6.25%
IPO [Member] \| Common Stock [Member]
Shareholders' Equity Disclosure [Abstract]
Net proceeds, offering amount			$ 280,800
Common stock shares issued (in shares)			5,339,286

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2021

Property and Equipment, Net [Abstract]

Property and Equipment

The Company’s property and equipment consisted of the following:

	March 31, 2021			December 31, 2020
Laboratory equipment	$	8,770		$	7,807
Machinery and equipment		9,973			9,933
Computer equipment		218			218
Furniture and fixtures		1,867			1,880
Leasehold improvements		29			29
Internal use software		1,696			1,385
		22,553			21,252
Less: accumulated depreciation and amortization		(2,720	)		(2,046	)
	$	19,833		$	19,206

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies

3.	Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2020 included in the Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021 (“2020 Form 10-K”). The unaudited interim consolidated financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s consolidated financial position as of March 31, 2021 and the results of its operations and its cash flows for the three months ended March 31, 2021. The financial data and other information disclosed in these consolidated notes related to the three months ended March 31, 2021 and 2020 are unaudited. The results for the three months ended March 31, 2021 are not necessarily indicative of results to be expected for the year ending December 31, 2021 and any other interim periods or any future year or period.

Principles of Consolidation

The consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). All intercompany accounts have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include but are not limited to goodwill impairment, the accrual of research and development (“R&D”) expenses, the valuation of equity transactions and stock-based awards. Changes in estimates and assumptions are reflected in reported results in the period in which they become known. Actual results could differ from those estimates.

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash consists of bank deposits, certificates of deposit and money market accounts with financial institutions. Cash equivalents are carried at cost which approximates fair value due to their short-term nature and which the Company believes do not have a material exposure to credit risk. The Company considers all highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. The Company’s cash and cash equivalent accounts, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.

Restricted cash consists of deposits collateralizing letters of credit issued by a bank in connection with the Company’s finance and operating leases (see Note 11 “Commitments and Contingencies” for additional disclosures) and a deposit collateralizing a letter of credit issued by a bank supporting the Company’s Corporate Credit Card. Cash, cash equivalents and restricted cash consist of the following:

	March 31, 2021		December 31, 2020

Cash and cash equivalents	$	252,540	$	297,098
Restricted cash		1,461		1,568
	$	254,001	$	298,666

Significant Accounting Policies

The significant accounting policies used in the preparation of these consolidated financial statements for the three months ended March 31, 2021 are consistent with those disclosed in Note 3 to the consolidated financial statements in the 2020 Form 10-K, except as noted below.

NYS Life Sciences Research and Development Tax Credit

New York State allows investors and owners of emerging technology companies focused on biotechnology to claim a tax credit against their New York State Tax return for certain expenditures incurred in New York State, including applicable R&D related expenditures. The credit is recognized as research and development incentives when the eligibility and amount has been approved by New York State. During the three months ended March 31, 2021 and 2020, respectively, the Company recorded research and development incentive income of $0.5 million and $0, respectively.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 362): Measurement of Credit Losses on Financial Statements (“ASU 2016-13”). The new standard requires that expected credit losses relating to financial assets measured on an amortized cost basis and available-for-sale debt securities be recorded through an allowance for credit losses. It also limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The targeted transition relief standard allows filers an option to irrevocably elect the fair value option of ASC 825-10, Financial Instruments-Overall, applied on an instrument-by-instrument basis for eligible instruments. The new standard was effective beginning January 1, 2021. The adoption of ASU 2016-13, and related updates, did not have a material impact on the Company’s consolidated financial position and results of operations.

There were no other recent accounting pronouncements that impacted the Company for the three months ended March 31, 2021 or are expected to have a significant effect on the consolidated financial statements.

401(k) Savings Plan

3 Months Ended

Mar. 31, 2021

401(k) Savings Plan [Abstract]

401(k) Savings Plan

15.	401(k) Savings Plan

The Company has a defined contribution savings plan (the “Plan”) under Section 401(k) of the Internal Revenue Code of 1986. This Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Company contributions to the Plan may be made at the discretion of the Company’s Board of Directors. The Company has elected to the safe harbor match of 4% of employee contributions to the Plan, subject to certain limitations. The Company’s matching contribution for the three months ended March 31, 2021 and 2020 was $0.2 million and $0.1 million, respectively.

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accounts Payable and Accrued Expenses [Abstract]
Research and development	$ 22,675	$ 14,962
Property and equipment	337	1,456
Right of use asset	325	0
Employee compensation	6,187	4,875
Accrued interest	449	1,122
Government grant payable	597	590
Professional fees	1,338	1,332
Internal use software	311	300
Other	949	835
Total	$ 33,168	$ 25,472

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 252,540	$ 297,098
Investments	213,813	185,621
Prepaid expenses and other assets	5,469	4,626
Total current assets	471,822	487,345
Property and equipment, net	19,833	19,206
Goodwill	30,815	30,815
Restricted cash	1,461	1,568
Deposits	455	455
Operating lease right-of-use assets	1,787	914
Finance lease right-of-use asset	50,311	50,521
Total assets	576,484	590,824
Current liabilities:
Accounts payable and accrued expenses	33,168	25,472
Convertible notes, net of unamortized discount, current	4,986	4,875
Operating lease liabilities, current	683	626
Finance lease liability, current	1,655	1,644
Total current liabilities	40,492	32,617
Convertible notes, net of unamortized discount, non-current	35,544	35,066
Operating lease liabilities, non-current	1,299	498
Finance lease liabilities, non-current	19,028	18,988
Other liabilities	122	136
Total liabilities	96,485	87,305
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.01 par value, 120,000,000 shares authorized; 61,987,799 and 60,996,367 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	619	610
Additional paid-in capital	842,477	825,794
Accumulated other comprehensive loss	(75)	(42)
Accumulated deficit	(363,022)	(322,843)
Total stockholders' equity	479,999	503,519
Total liabilities and stockholders' equity	576,484	590,824
Series A Convertible Preferred Shares [Member]
Stockholders' equity:
Preferred stock	0	0
Series B Convertible Preferred Shares [Member]
Stockholders' equity:
Preferred stock	$ 0	$ 0

Convertibles Notes (Details)			3 Months Ended		12 Months Ended
Convertibles Notes (Details)	Apr. 26, 2021 USD ($) d	Feb. 20, 2020 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) d $ / shares	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) shares	Jun. 12, 2020 USD ($)	Jan. 04, 2018 USD ($)
Debt [Abstract]
Aggregate amount of common stock shares repurchased				$ 72,000
Carrying value of convertible notes [Abstract]
Carrying value			$ 35,544,000		$ 35,066,000
Accretion of debt discount			$ 589,000	844,000
2021 Convertible Notes [Member]
Debt [Abstract]
Debt instrument maturity date			Aug. 01, 2021
Convertible senior notes, interest rate, stated percentage			5.75%			6.25%
Debt conversion ratio			31.1876
Conversion per principal amount of debt			$ 1,000.00
Convertible Note exchange						1.00
Conversion price (in dollars per share) \| $ / shares			$ 32.08
Percentage of common stock conversion price			200.00%
Number of trading days, not consecutive \| d			20
Number of consecutive trading days \| d			30
Number of trading days immediately preceding notice of redemption			5 days
Redemption price percentage			100.00%
Effective interest rate			15.30%
Debt instrument, aggregate principal amount exchanged		$ 39,350,000				$ 7,500,000
Debt instrument, percentage of aggregate outstanding principal		76.00%
Accrued and unpaid interest		$ 100,000				11,000,000
Number of common stock shares repurchased (in shares) \| shares		3,000
Aggregate amount of common stock shares repurchased		$ 71,670,000
Carrying value of convertible notes [Abstract]
Principal amount			$ 5,150,000		5,150,000	$ 7,500,000	$ 52,000,000.0
Discount			(164,000)		(275,000)
Carrying value			4,986,000		4,875,000
Accretion of debt discount			$ 100,000	600,000
2022 Convertible Notes [Member]
Debt [Abstract]
Debt instrument maturity date			Aug. 31, 2022
Convertible senior notes, interest rate, stated percentage		6.25%	6.25%
Debt conversion ratio		31.1876
Conversion per principal amount of debt		$ 1,000.00
Convertible Note exchange		1.00
Conversion price (in dollars per share) \| $ / shares		$ 32.06
Percentage of common stock conversion price		130.00%
Number of trading days, not consecutive \| d			20
Number of consecutive trading days \| d			30
Number of trading days immediately preceding notice of redemption			5 days
Effective interest rate			15.30%
Conversion of convertible notes into common stock, principal amount					8,500,000
Conversion of convertible notes into common stock					$ 7,600,000
Convertible Notes converted into shares of common stock (in shares) \| shares					298,562
Carrying value of convertible notes [Abstract]
Principal amount		$ 39,350,000	$ 38,350,000		$ 38,350,000
Discount			(2,806,000)		(3,284,000)
Carrying value			35,544,000		$ 35,066,000
Accretion of debt discount			$ 500,000	$ 200,000
2022 Convertible Notes [Member] \| Subsequent Event [Member]
Debt [Abstract]
Convertible senior notes, interest rate, stated percentage	6.25%
Number of trading days, not consecutive \| d	20
Number of consecutive trading days \| d	30
Redemption of principal balance	$ 38,400,000

Nature of Business (Details)	3 Months Ended
Nature of Business (Details)	Mar. 31, 2021 Program
Nature of Business [Abstract]
Number of clinical-stage programs	4

CIRM Grants

3 Months Ended

Mar. 31, 2021

CIRM Grants [Abstract]

CIRM Grants

13.	CIRM Grants

LAD-I CIRM Grant

On April 30, 2019, the California Institute for Regenerative Medicine (“CIRM”) awarded the Company up to $6.5 million under a CLIN2 grant award to support the clinical development of gene therapy for LAD-I. Proceeds from the grant will help fund clinical trial costs as well as manufactured drug product for Phase I/II patients enrolled at the U.S. clinical site, University of California, Los Angeles (“UCLA”) Mattel Children’s Hospital, led by principal investigator Donald Kohn, M.D., UCLA Professor of Microbiology, Immunology and Molecular Genetics, Pediatrics (Hematology/Oncology), Molecular and Medical Pharmacology and member of the Eli and Edythe Broad Center of Regenerative Medicine and Stem Cell Research at UCLA. In 2019, the Company received the first two grants from CIRM in the aggregate of $1.2 million, based on eligible costs incurred under the grant. The CIRM grant reimbursements are accrued as an offset against R&D expenses as reimbursable expenses are incurred. As of December 31, 2020, the Company met the next CIRM milestone and recorded a receivable, included in prepaid and other assets in the consolidated balance sheet, and a reduction of research and development expenses of $1.1 million. The Company received the $1.1 million milestone payment on January 4, 2021. As of March 31, 2021, the Company met the next CIRM milestone and recorded a receivable, included in prepaid and other assets in the consolidated balance sheet, and a reduction of research and development expenses of $1.0 million. The Company received the $1.0 million milestone payment on April 1, 2021.

IMO CIRM Grant

On November 12, 2020, the CIRM awarded the Company up to $3.7 million under a CLIN2 grant award to support the clinical development of its lentiviral vector (LVV)-based gene therapy, RP-L401, for the treatment of IMO. The Company received a $1.1 million pursuant to the grant on January 4, 2021 related to the CIRM IMO award and recorded a receivable, included in prepaid and other assets in the consolidated balance sheet, and a reduction of research and development expenses of $0.9 million as of December 31, 2020. The Company recorded a reduction of research and development expense of $0.1 million for the three months ended March 31, 2021.

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Consolidated Statements of Comprehensive Loss [Abstract]
Net loss	$ (40,179)	$ (24,664)
Other comprehensive loss
Net unrealized loss on investments	(33)	(95)
Total comprehensive loss	$ (40,212)	$ (24,759)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

Stock-Based Awards, Restricted Stock Units (Details) - Restricted Stock Units (RSU) [Member]	3 Months Ended
	Mar. 31, 2021 $ / shares shares
Number of Shares [Roll Forward]
Unvested, beginning balance (in shares) \| shares	20,000
Granted (in shares) \| shares	3,500
Vested (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Unvested, ending balance (in shares) \| shares	23,500
Weighted Average Grant Date Fair Value [Abstract]
Unvested, beginning balance (in dollars per share) \| $ / shares	$ 25.06
Granted (in dollars per share) \| $ / shares	62.32
Vested (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Unvested, ending balance (in dollars per share) \| $ / shares	$ 30.61

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	61,987,799	60,996,367
Common stock, shares outstanding (in shares)	61,987,799	60,996,367
Series A Convertible Preferred Shares [Member]
Stockholders' equity:
Preferred stock, shares authorized (in shares)	300,000	300,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series B Convertible Preferred Shares [Member]
Stockholders' equity:
Preferred stock, shares authorized (in shares)	300,000	300,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	May 03, 2021
Cover page [Abstract]
Entity Registrant Name	Rocket Pharmaceuticals, Inc.
Entity Central Index Key	0001281895
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-36829
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3475813
Entity Address, Address Line One	9 Cedarbrook Drive
Entity Address, City or Town	Cranbury
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08512
City Area Code	646
Local Phone Number	440-9100
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	RCKT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,396,954

401(k) Savings Plan (Details) - USD ($) $ in Millions	3 Months Ended
401(k) Savings Plan (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020
401(k) Savings Plan [Abstract]
Percentage of matching employee contributions	4.00%
Matching employee contributions	$ 0.2	$ 0.1

Accounts Payable and Accrued Expenses

3 Months Ended

Mar. 31, 2021

Accounts Payable and Accrued Expenses [Abstract]

Accounts Payable and Accrued Expenses

6.	Accounts Payable and Accrued Expenses

At March 31, 2021 and December 31, 2020, the Company’s accounts payable and accrued expenses consisted of the following:

	March 31,		December 31,
	2021		2020
Research and development	$	22,675	$	14,962
Property and equipment		337		1,456
Right of use asset		325		-
Employee compensation		6,187		4,875
Accrued interest		449		1,122
Government grant payable		597		590
Professional fees		1,338		1,332
Internal use software		311		300
Other		949		835
	$	33,168	$	25,472

Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Stock Based Compensation [Abstract]

Weighted-Average Assumptions for Stock Options

The weighted average assumptions that the Company used in the Black-Scholes pricing model to determine the fair value of the stock options granted to employees, non-employees and directors were as follows:

	Three Months Ended March 31,
	2021			2020

Risk-free interest rate		0.62	%		1.48	%
Expected term (in years)		5.87			5.87
Expected volatility		69.41	%		77.75	%
Expected dividend yield		0.00	%		0.00	%
Exercise price	$	36.99		$	22.47
Fair value of common stock	$	36.99		$	22.47

Stock Option Activity

The following table summarizes stock option activity for the three months ended March 31, 2021 under the Second Amended and Restated 2014 Stock Option and Incentive Plan:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Years)		Aggregate Intrinsic Value

Outstanding as of December 31, 2020		11,050,931		$	9.10		6.55	$	504,079
Granted		916,575			60.95		10.64
Exercised		(991,432	)		8.31				51,892
Cancelled		(83,244	)		31.82
Outstanding as of March 31, 2021		10,892,830		$	13.42		6.57	$	349,406

Options vested and exercisable as of March 31, 2021		7,856,137		$	5.70		5.55	$	300,452
Options unvested as of March 31, 2021		3,036,693		$	33.17		9.20

Stock-Based Compensation Expense by Award Type

Stock-based compensation expense recognized by award type was as follows:

	Three Months Ended March 31,
	2021		2020

Stock options	$	7,826	$	3,961
Restricted stock units		74		-
Total share based compensation expense	$	7,900	$	3,961

Stock-Based Compensation Expense

Stock-based compensation expense by classification included within the consolidated statements of operations and comprehensive loss was as follows:

	Three Months Ended March 31,
	2021		2020

Research and development	$	2,916	$	1,735
General and administrative		4,984		2,226
Total share based compensation expense	$	7,900	$	3,961

RSU Activity

The following table summarizes our RSU activity for the three months ended March 31, 2021:

	Number of Shares		Weighted Average Grant Date Fair Value

Unvested as of December 31, 2020		20,000	$	25.06
Granted		3,500		62.32
Vested		-		-
Forfeited		-		-
Unvested as of March 31, 2021		23,500		30.61

Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity [Abstract]

Stockholders' Equity

9.	Stockholders’ Equity

The Company had warrants outstanding as of both March 31, 2021 and December 31, 2020, convertible into 7,051 and 603,386 shares of common stock at an exercise price of $24.82 and $57.11 per share, respectively which will expire on June 28, 2023 and December 21, 2030, respectively.

Subsequent Events (Details) - Subsequent Event [Member] shares in Millions, $ in Millions	Apr. 26, 2021 USD ($) shares
2021 Convertible Notes [Member]
Convertible Notes [Abstract]
Convertible notes, outstanding	$ 5.2
2022 Convertible Notes [Member]
Convertible Notes [Abstract]
Redemption of principal balance	$ 38.4
2022 Convertible Notes [Member] \| Common Stock [Member]
Convertible Notes [Abstract]
Common stock issued for convertible notes (in shares) \| shares	1.3

Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments Measured on Recurring Basis

	Fair Value Measurements as of March 31, 2021 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market mutual funds	$	235,899	$	-	$	-	$	235,899
		235,899		-		-		235,899

Investments:
United States Treasury securities		107,566		-		-		107,566
Corporate Bonds		-		100,247		-		100,247
Municipal Bonds		-		6,000		-		6,000
		107,566		106,247		-		213,813

	$	343,465	$	106,247	$	-	$	449,712

	Fair Value Measurements as of December 31, 2020 Using:
	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents:
Money market mutual funds	$	193,312	$	-	$	-	$	193,312
United States Treasury securities		62,497		-		-		62,497
Corporate Bonds		-		501		-		501
Agency Bonds		-		8,015		-		8,015
		255,809		8,516		-		264,325

Investments:
United States Treasury securities		112,328		-		-		112,328
Corporate Bonds		-		63,710		-		63,710
Municipal Bonds		-		6,000		-		6,000
Agency Bonds		-		3,583		-		3,583
		112,328		73,293		-		185,621

	$	368,137	$	81,809	$	-	$	449,946

Agreements Related to Intellectual Property

3 Months Ended

Mar. 31, 2021

12.	Agreements Related to Intellectual Property

The Company has various license and research and collaboration arrangements. The transactions principally resulted in the acquisition of rights to intellectual property which is in the preclinical phase and has not been tested for safety or feasibility. In all cases, the Company did not acquire tangible assets, processes, protocols, or operating systems. The Company expenses the acquired intellectual property rights as of the acquisition date on the basis that the cost of intangible assets purchased from others for use in research and development activities has no alternative future uses.

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies [Abstract]

Cash, Cash Equivalents and Restricted Cash

	March 31, 2021		December 31, 2020

Cash and cash equivalents	$	252,540	$	297,098
Restricted cash		1,461		1,568
	$	254,001	$	298,666

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Consolidated Statements of Operations [Abstract]
Revenue	$ 0	$ 0
Operating expenses:
Research and development	28,542	16,957
General and administrative	10,680	7,163
Total operating expenses	39,222	24,120
Loss from operations	(39,222)	(24,120)
Research and development incentives	500	0
Interest expense	(1,729)	(1,573)
Interest and other income net	911	967
(Amortization of premium) accretion of discount on investments - net	(639)	62
Net loss	$ (40,179)	$ (24,664)
Net loss per share attributable to common stockholders - basic (in dollars per share)	$ (0.65)	$ (0.45)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (0.65)	$ (0.45)
Weighted-average common shares outstanding - basic (in shares)	61,574,405	54,883,120
Weighted-average common shares outstanding - diluted (in shares)	61,574,405	54,883,120

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating Activities:
Net loss	$ (40,179)	$ (24,664)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of discount on convertible notes	589	844
Depreciation and amortization expense	674	118
Write down of property and equipment	0	63
Stock-based compensation	7,900	3,961
Accretion of discount (amortization of premium) on investments, net	620	(63)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(842)	(271)
Accounts payable and accrued expenses	7,047	(1,932)
Operating lease liabilities	(15)	(452)
Finance lease liability	(63)	151
Other long term liabilities	(14)	0
Net cash used in operating activities	(24,283)	(22,245)
Investing activities:
Purchases of investments	(103,815)	(23,481)
Proceeds from maturities of investments	74,969	56,805
Payments made to acquire right of use asset	0	(530)
Purchases of property and equipment	(328)	(5,207)
Purchases of internal use software	0	(88)
Net cash (used in) provided by investing activities	(29,174)	27,499
Financing activities:
Issuance of common stock, pursuant to exercise of stock options	8,792	0
Common stock repurchase	0	(72)
Proceeds from sale of treasury stock	0	53
Convertible notes refinancing costs to the lender	0	(98)
Net cash provided by (used in) financing activities	8,792	(117)
Net change in cash, cash equivalents and restricted cash	(44,665)	5,137
Cash, cash equivalents and restricted cash at beginning of period	298,666	186,908
Cash, cash equivalents and restricted cash at end of period	254,001	192,045
Supplemental disclosure of non-cash financing and investing activities:
Accrued purchases of property and equipment	337	2,796
Accrued purchases of internal use software	311	174
Retirement of treasury stock	0	72
Witholding tax payable on shares witheld in treasury stock	0	429
Unrealized loss on investments	(33)	(95)
Finance lease right of use asset and lease liability	0	20,179
Reclassification of construction in process to finance right of use asset	325	26,465
Supplemental cash flow information:
Cash paid for interest	$ 1,347	$ 1,495

CIRM Grants (Details) $ in Millions			12 Months Ended
CIRM Grants (Details) $ in Millions	Apr. 01, 2021 USD ($)	Jan. 04, 2021 USD ($)	Dec. 31, 2019 USD ($) Grant	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Nov. 12, 2020 USD ($)	Apr. 30, 2019 USD ($)
LAD-I CIRM Grant [Member]
CIRM Grants [Abstract]
Grant award for clinical development support							$ 6.5
Number of grants \| Grant			2
Amount received from grant for eligible costs incurred			$ 1.2
Grant receivable included in prepaid and other assets				$ 1.0	$ 1.1
Milestone payments received		$ 1.1
IMO CIRM Grant [Member]
CIRM Grants [Abstract]
Grant award for clinical development support						$ 3.7
Amount received from grant for eligible costs incurred		$ 1.1
Grant receivable included in prepaid and other assets				$ 0.1	$ 0.9
Subsequent Event [Member] \| LAD-I CIRM Grant [Member]
CIRM Grants [Abstract]
Milestone payments received	$ 1.0

Stock Based Compensation, Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Stock-Based Compensation Expense [Abstract]
Total share based compensation expense	$ 7,900	$ 3,961
Unrecognized share-based compensation cost	$ 55,700
Weighted average period expected to recognize unrecognized share-based compensation cost	3 years 3 days
Research and Development [Member]
Stock-Based Compensation Expense [Abstract]
Total share based compensation expense	$ 2,916	1,735
General and Administrative [Member]
Stock-Based Compensation Expense [Abstract]
Total share based compensation expense	4,984	2,226
Stock Options [Member]
Stock-Based Compensation Expense [Abstract]
Total share based compensation expense	7,826	3,961
Restricted Stock Units [Member]
Stock-Based Compensation Expense [Abstract]
Total share based compensation expense	$ 74	$ 0

Property and Equipment, Net

3 Months Ended

Mar. 31, 2021

Property and Equipment, Net [Abstract]

Property and Equipment, Net

5.	Property and Equipment, Net

The Company’s property and equipment consisted of the following:

	March 31, 2021			December 31, 2020
Laboratory equipment	$	8,770		$	7,807
Machinery and equipment		9,973			9,933
Computer equipment		218			218
Furniture and fixtures		1,867			1,880
Leasehold improvements		29			29
Internal use software		1,696			1,385
		22,553			21,252
Less: accumulated depreciation and amortization		(2,720	)		(2,046	)
	$	19,833		$	19,206

During the three months ended March 31, 2021 and 2020, the Company recognized $0.7 million and $0.1 million of depreciation and amortization expense, respectively.

Nature of Business

3 Months Ended

Mar. 31, 2021

Nature of Business [Abstract]

Nature of Business

1.	Nature of Business

Rocket Pharmaceuticals, Inc. (“Rocket” or the “Company”) is a clinical-stage, multi-platform biotechnology company focused on the development of first, only and best-in-class gene therapies, with direct on-target mechanism of action and clear clinical endpoints, for rare and devastating diseases. Rocket has four clinical-stage ex vivo lentiviral vector (“LVV”) programs. These include programs for Fanconi Anemia (“FA”), a genetic defect in the bone marrow that reduces production of blood cells or promotes the production of faulty blood cells, Leukocyte Adhesion Deficiency-I (“LAD-I”), a genetic disorder that causes the immune system to malfunction, Pyruvate Kinase Deficiency (“PKD”), a rare red blood cell autosomal recessive disorder that results in chronic non-spherocytic hemolytic anemia and Infantile Malignant Osteopetrosis (“IMO”), a genetic disorder characterized by increased bone density and bone mass secondary to impaired bone resorption. Of these, both the Phase 2 FA program and the Phase 1/2 LAD-I program are in registration-enabling studies in the United States (“U.S.”) and Europe (“EU”). In addition, in the U.S., Rocket has a clinical stage in vivo adeno-associated virus (“AAV”) program for Danon disease, a multi-organ lysosomal-associated disorder leading to early death due to heart failure. The Company has global commercialization and development rights to all of these product candidates under royalty-bearing license agreements. Additional discovery efforts on a gene therapy program for the less common FA subtypes C and G is ongoing.

Stock Based Compensation

3 Months Ended

Mar. 31, 2021

Stock Based Compensation [Abstract]

Stock Based Compensation

8.	Stock Based Compensation

Stock Option Valuation

	Three Months Ended March 31,
	2021			2020

Risk-free interest rate		0.62	%		1.48	%
Expected term (in years)		5.87			5.87
Expected volatility		69.41	%		77.75	%
Expected dividend yield		0.00	%		0.00	%
Exercise price	$	36.99		$	22.47
Fair value of common stock	$	36.99		$	22.47

The following table summarizes stock option activity for the three months ended March 31, 2021 under the Second Amended and Restated 2014 Stock Option and Incentive Plan:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Years)		Aggregate Intrinsic Value

Outstanding as of December 31, 2020		11,050,931		$	9.10		6.55	$	504,079
Granted		916,575			60.95		10.64
Exercised		(991,432	)		8.31				51,892
Cancelled		(83,244	)		31.82
Outstanding as of March 31, 2021		10,892,830		$	13.42		6.57	$	349,406

Options vested and exercisable as of March 31, 2021		7,856,137		$	5.70		5.55	$	300,452
Options unvested as of March 31, 2021		3,036,693		$	33.17		9.20

The weighted average grant-date fair value per share of stock options granted during the three months ended March 31, 2021 and 2020 was $36.99 and $15.03, respectively.

The total fair value of options vested during the three months ended March 31, 2021 and 2020 was $8.3 million and $17.3 million, respectively.

Stock-Based Compensation

Stock-based compensation expense recognized by award type was as follows:

	Three Months Ended March 31,
	2021		2020

Stock options	$	7,826	$	3,961
Restricted stock units		74		-
Total share based compensation expense	$	7,900	$	3,961

Stock-based compensation expense by classification included within the consolidated statements of operations and comprehensive loss was as follows:

	Three Months Ended March 31,
	2021		2020

Research and development	$	2,916	$	1,735
General and administrative		4,984		2,226
Total share based compensation expense	$	7,900	$	3,961

As of March 31, 2021, the Company had an aggregate of $55.7 million of unrecognized stock-based compensation expense, which is expected to be recognized over the weighted average period of 3.01 years.

Restricted Stock Units (“RSU”)

The following table summarizes our RSU activity for the three months ended March 31, 2021:

	Number of Shares		Weighted Average Grant Date Fair Value

Unvested as of December 31, 2020		20,000	$	25.06
Granted		3,500		62.32
Vested		-		-
Forfeited		-		-
Unvested as of March 31, 2021		23,500		30.61

Risks and Liquidity

3 Months Ended

Mar. 31, 2021

Risks and Liquidity [Abstract]

Risks and Liquidity

2.	Risks and Liquidity

The Company has not generated any revenue and has incurred losses since inception. The Company’s operations are subject to certain risks and uncertainties, including, among others, uncertainty of drug candidate development, technological uncertainty, uncertainty regarding patents and proprietary rights, the absence of commercial manufacturing experience, marketing or sales capability or experience, dependency on key personnel, compliance with government regulations and the need to obtain additional financing. Drug candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure and extensive compliance-reporting capabilities.

The Company’s product candidates are in the development and clinical stage. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any products developed will obtain necessary government approval or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from pharmaceutical and biotechnology companies.

The Company’s consolidated financial statements have been prepared on the basis of continuity of operations, realization of assets and the satisfaction of liabilities in the ordinary course of business. The Company has experienced negative cash flows from operations and had an accumulated deficit of $363.0 million as of March 31, 2021. As of March 31, 2021, the Company has $466.4 million of cash, cash equivalents and investments. During the year ended December 31, 2020, the Company received net proceeds of $280.8 million from a public offering of 5,339,286 shares of common stock. Rocket expects such resources will be sufficient to fund its operating expenses and capital expenditure requirements into the second half of 2023. In April 2021, the Company called for the redemption of the remaining $38.4 million principal balance of its 6.25% 2022 Convertible Senior Notes due 2022 which were converted into common stock (See Notes 7 and 16).

In the longer term, the future viability of the Company is dependent on its ability to generate cash from operating activities or to raise additional capital to finance its operations. The Company’s failure to raise capital as and when needed could have a negative impact on its financial condition and ability to pursue its business strategies.

Stock Based Compensation, Share Option Valuation (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Stock Option Activity [Roll Forward]
Outstanding at beginning of period (in shares)	11,050,931
Granted (in shares)	916,575
Exercised (in shares)	(991,432)
Cancelled (in shares)	(83,244)
Outstanding at end of period (in shares)	10,892,830		11,050,931
Options vested and exercisable at end of period (in shares)	7,856,137
Options unvested at ending of period (in shares)	3,036,693
Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 9.10
Granted (in dollars per share)	60.95
Exercised (in dollars per share)	8.31
Cancelled (in dollars per share)	31.82
Outstanding at end of period (in dollars per share)	13.42		$ 9.10
Options vested and exercisable at end of period (in dollars per share)	5.70
Options unvested at ending (in dollars per share)	$ 33.17
Weighted-Average Remaining Contractual Term [Abstract]
Outstanding	6 years 6 months 25 days		6 years 6 months 18 days
Granted	10 years 7 months 20 days
Options vested and exercisable	5 years 6 months 18 days
Options unvested	9 years 2 months 12 days
Aggregate Intrinsic Value [Abstract]
Outstanding at beginning of period	$ 504,079
Exercised	51,892
Outstanding at end of period	349,406		$ 504,079
Options vested and exercisable	$ 300,452
Weighted average grant date fair value of shares granted (in dollars per share)	$ 36.99	$ 15.03
Total fair value of options vested	$ 8,300	$ 17,300
Employees and Directors [Member]
Weighted-Average Assumptions [Abstract]
Risk-free interest rate	0.62%	1.48%
Expected term	5 years 10 months 13 days	5 years 10 months 13 days
Expected volatility	69.41%	77.75%
Expected dividend yield	0.00%	0.00%
Exercise price (in dollars per share)	$ 36.99	$ 22.47
Fair value of common stock (in dollars per share)	$ 36.99	$ 22.47

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 21, 2020
Related Party Transaction [Abstract]
Termination notice period for business development consulting services agreement		60 days
Term of consulting agreement		3 years
Warrant issued (in shares)		7,051		603,386
Restricted Stock Units [Member]
Related Party Transaction [Abstract]
Shares granted (in shares)		3,500
Warrants Exercisable for Common Shares [Member]
Related Party Transaction [Abstract]
Warrant issued (in shares)		0			603,386
Member of the Board of Directors - One [Member]
Related Party Transaction [Abstract]
Business development consulting services expense (per quarter)		$ 28
Termination notice period for business development consulting services agreement		14 days
Related party expenses		$ 28	$ 28
Member of the Board of Directors - Two [Member]
Related Party Transaction [Abstract]
Term of consulting agreement		1 year
Number of options granted (in shares)		9,784
Fair value amount of options granted		$ 100
Spouse of Executive officer [Member] \| Restricted Stock Units [Member]
Related Party Transaction [Abstract]
Shares granted (in shares)	10,000
Vesting period		3 years

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Total
Beginning Balance at Dec. 31, 2019	$ 548	$ (53)	$ 489,925	$ 20	$ (183,143)	$ 307,297
Beginning Balance (in shares) at Dec. 31, 2019	54,773,061
Issuance of common stock pursuant to exercise of stock options	$ 3	0	(3)	0	0	0
Issuance of common stock pursuant to exercise of stock options (in shares)	386,974
Share repurchase	$ 0	0	(72)	0	0	(72)
Share repurchase (in shares)	(3,000)
Sale of treasury stock	$ 0	53	0	0	0	53
Sale of treasury stock (in shares)	0
Issuance of treasury stock pursuant to exercise of stock options	$ 0	(429)	0	0	0	(429)
Issuance of treasury stock pursuant to exercise of stock options (in shares)	0
Unrealized comprehensive loss on investments	$ 0	0	0	(95)	0	(95)
Share-based compensation	0	0	3,961	0	0	3,961
Net loss	0	0	0	0	(24,664)	(24,664)
Ending Balance at Mar. 31, 2020	$ 551	(429)	493,811	(75)	(207,807)	286,051
Ending Balance (in shares) at Mar. 31, 2020	55,157,035
Beginning Balance at Dec. 31, 2020	$ 610	0	825,794	(42)	(322,843)	503,519
Beginning Balance (in shares) at Dec. 31, 2020	60,996,367
Issuance of common stock pursuant to exercise of stock options	$ 9	0	8,783	0	0	8,792
Issuance of common stock pursuant to exercise of stock options (in shares)	991,432
Unrealized comprehensive loss on investments	$ 0	0	0	(33)	0	(33)
Share-based compensation	0	0	7,900	0	0	7,900
Net loss	0	0	0	0	(40,179)	(40,179)
Ending Balance at Mar. 31, 2021	$ 619	$ 0	$ 842,477	$ (75)	$ (363,022)	$ 479,999
Ending Balance (in shares) at Mar. 31, 2021	61,987,799

Accounts Payable and Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2021

Accounts Payable and Accrued Expenses [Abstract]

Accounts Payable and Accrued Expenses

At March 31, 2021 and December 31, 2020, the Company’s accounts payable and accrued expenses consisted of the following:

	March 31,		December 31,
	2021		2020
Research and development	$	22,675	$	14,962
Property and equipment		337		1,456
Right of use asset		325		-
Employee compensation		6,187		4,875
Accrued interest		449		1,122
Government grant payable		597		590
Professional fees		1,338		1,332
Internal use software		311		300
Other		949		835
	$	33,168	$	25,472

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Basis of Presentation, Principles of Consolidation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

Use of Estimates

Cash, Cash Equivalents and Restricted Cash

	March 31, 2021		December 31, 2020

Cash and cash equivalents	$	252,540	$	297,098
Restricted cash		1,461		1,568
	$	254,001	$	298,666

Significant Accounting Policies

NYS Life Sciences Research and Development Tax Credit

Recent Accounting Pronouncements

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator [Abstract]
Net loss attributable to common stockholders	$ (40,179)	$ (24,664)
Denominator [Abstract]
Weighted-average common shares outstanding - basic (in shares)	61,574,405	54,883,120
Weighted-average common shares outstanding - diluted (in shares)	61,574,405	54,883,120
Net loss per share attributable to common stockholders - basic (in dollars per share)	$ (0.65)	$ (0.45)
Net loss per share attributable to common stockholders - diluted (in dollars per share)	$ (0.65)	$ (0.45)
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Warrants exercisable for common shares (in shares)	610,437	14,102
Options to purchase common shares (in shares)	10,892,830	10,538,890
Weighted average number diluted shares outstanding (in shares)	12,859,252	12,173,940
Convertible Notes 2021 [Member]
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Shares issuable upon conversion of Convertible Notes (in shares)	160,536	394,327
Convertible Notes 2022 [Member]
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Shares issuable upon conversion of Convertible Notes (in shares)	1,195,449	1,226,621

Commitments and Contingencies, Finance Lease (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) ft² LeaseAgreement	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Mar. 15, 2020 USD ($)
Finance Lease [Abstract]
Total lease payments	$ 55,219
Cash security deposit	455		$ 455
Finance right-of-use assets	50,311		50,521
Finance lease, liability	20,683
Finance lease, interest expense	$ 459
NJ Lease Agreement [Member]
Finance Lease [Abstract]
Area of lease \| ft²	103,720
Term of finance lease agreement	15 years
Number of options to renew lease agreement \| LeaseAgreement	2
Term of renewal of finance lease agreement	5 years
Estimated rent payments	$ 1,200
Percentage of annual increase in base rent	3.00%
Total lease payments	$ 29,300
Cash security deposit	300		$ 300
Finance right-of-use assets				$ 47,700
Finance lease, liability				20,200
Reclassification of construction costs in progress to right-of-use assets	300			26,500
Reclassification of prepaid rent to right-of-use assets				$ 1,100
Aggregate amount for reclassification of construction costs in progress to right-of-use assets	32,400
Finance lease, interest expense	$ 500	$ 200
AAV Current Good Manufacturing Practice (cGMP) [Member]
Finance Lease [Abstract]
Area of lease \| ft²	50,000

Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies [Abstract]

Commitments and Contingencies

11.	Commitments and Contingencies

The Company determines if an arrangement is a lease at inception. Operating and finance leases are presented in the Company’s consolidated balance sheet as right-of-use assets from leases, current lease liabilities and long-term lease liabilities. Certain of the Company’s lease agreements contain renewal options; however, the Company does not recognize right-of-use assets or lease liabilities for renewal periods unless it is determined that the Company is reasonably certain of renewing the lease at inception or when a triggering event occurs. As the Company’s leases do not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments using an estimate of the Company’s collateralized borrowing rate for debt with a similar term. The Company has utilized its incremental borrowing rate based on the long-term borrowing costs of comparable companies in the biotechnology industry. Since the Company elected to account for each lease component and its associated non-lease components as a single combined lease component, all contract consideration was allocated to the combined lease component. Some of the Company’s lease agreements contain rent escalation clauses (including index-based escalations). The Company recognizes the minimum rental expense on a straight-line basis based on the fixed components of a lease arrangement. The Company will amortize this expense over the term of the lease beginning with the lease commencement date. Variable lease components represent amounts that are not fixed in nature and are not tied to an index or rate and are recognized as incurred.

Finance Lease

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. A smaller area within this facility was originally leased in August 2018, and the lease was amended in June 2019 to include the full building (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 NJ Lease Agreement is estimated to be approximately $29.3 million over the 15-year term of the NJ Lease Agreement. 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 in deposits in the consolidated balance sheets as of March 31, 2021 and December 31, 2020.

The Company determined the lease commencement date was reached on March 15, 2020 when the construction of all landlord owned improvements had been substantially completed and when the Company began including its leasehold improvements on the balance sheet and move equipment into the space. Upon commencement of the NJ Lease Agreement in March 2020, the Company recognized total right-of-use assets of $47.7 million, with a corresponding lease liability of $20.2 million. The Company reclassified $26.5 million of construction costs in progress and $1.1 million of prepaid rent as part of the right of use asset upon the lease commencement date of March 15, 2020. During the three months ended March 31, 2021, the Company reclassified an additional $0.3 million bringing the aggregate reclassification to $32.4 million of construction costs in progress as part of the right of use asset.

Interest associated with the financing lease was $0.5 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively and is recorded as interest expense on the consolidated statements of operations.

Operating Leases

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”) with a bank for $0.9 million which expired on June 30, 2020 and renewed automatically for a one-year period until its expiration date of July 31, 2021. On March 26, 2021, the Company entered in 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 down to $0.8 million. The Empire LOC serves as the Company’s security deposit on the lease in which the landlord is the beneficiary. The Company has accounted for the ESB Lease Amendment as a modification to the ESB Lease Agreement. The Company remeasured lease liability and adjusted the operating lease right of use asset by $1.1 million.

The Company has a certificate of deposit of $0.8 million and $0.9 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 March 31, 2021 and December 31, 2020. This security deposit was reduced to $0.8 million in March 2021 in connection with the ESB Lease Amendment.

On January 4, 2018, in connection with the Reverse Merger, the Company assumed an operating lease for Inotek’s former headquarters in Lexington, Massachusetts, with a term ending in February 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 $0.1 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively. Rental income is netted against rent expense in the consolidated statement of operations.

Rent expense was $0.3 million for the three months ended March 31, 2021 and 2020.

The total restricted cash balance for the Company’s operating and finance leases at March 31, 2021 and December 31, 2020 was $1.0 million and $1.1 million, respectively.

Lease cost	March 31, 2021
Operating lease cost	$	196
Finance lease cost
Amortization of right of use assets		535
Interest on lease liablities		459
Total lease cost	$	1,190

The following table summarizes the maturity of the Company’s operating and finance lease liabilities on an undiscounted cash flow basis and a reconciliation to the operating and finance lease liabilities as of March 31, 2021:

Maturity of operating lease liabilities	March 31, 2021
2021		544
2022		860
2023		488
2024		208
Total lease payments	$	2,100
Less: interest		(118	)
Total operating lease liabilities	$	1,982

Maturity of finance lease liability	March 31, 2021
2021		1,235
2022		1,689
2023		1,736
2024		1,791
Thereafter		48,768
Total lease payments	$	55,219
Less: interest		(34,536	)
Total finance lease liability	$	20,683

Leases	March 31, 2021

Operating right-of-use assets	$	1,787

Operating current lease liabilities		683
Operating noncurrent lease liabilities		1,299
Total operating lease liabilities	$	1,982

Finance right-of-use assets	$	50,311
Finance current lease liability		1,655
Finance noncurrent lease liability		19,028
Total finance lease liability	$	20,683

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	226
Cash flows from finance lease	$	408
Weighted-average remaining lease term - operating leases	2.7 years
Weighted-average remaining lease term - finance lease	23.4 years
Weighted-average discount rate - operating leases		4.90	%
Weighted-average discount rate - finance lease		8.96	%

Litigation

From time to time, the Company may be subject to other various legal proceedings and claims that arise in the ordinary course of its business activities. Although the results of litigation and claims cannot be predicted with certainty, the Company does not believe it is party to any other claim or litigation the outcome of which, if determined adversely to the Company, would individually or in the aggregate be reasonably expected to have a material adverse effect on its business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.

Indemnification Arrangements

Pursuant to its bylaws and as permitted under Delaware law, the Company has indemnification obligations to directors, officers, employees or agents of the Company or anyone serving in these capacities. The maximum potential amount of future payments the Company could be required to pay is unlimited. The Company has insurance that reduces its monetary exposure and would enable it to recover a portion of any future amounts paid. As a result, the Company believes that the estimated fair value of these indemnification commitments is minimal.

Throughout the normal course of business, the Company has agreements with vendors that provide goods and services required by the Company to run its business. In some instances, vendor agreements include language that requires the Company to indemnify the vendor from certain damages caused by the Company’s use of the vendor’s goods and/or services. The Company has insurance that would allow it to recover a portion of any future amounts that could arise from these indemnifications. As a result, the Company believes that the estimated fair value of these indemnification commitments is minimal.

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies [Abstract]

Lease Cost

Lease cost	March 31, 2021
Operating lease cost	$	196
Finance lease cost
Amortization of right of use assets		535
Interest on lease liablities		459
Total lease cost	$	1,190

Maturities of Operating Lease Liabilities

Maturity of operating lease liabilities	March 31, 2021
2021		544
2022		860
2023		488
2024		208
Total lease payments	$	2,100
Less: interest		(118	)
Total operating lease liabilities	$	1,982

Maturity of Finance Lease Liability

Maturity of finance lease liability	March 31, 2021
2021		1,235
2022		1,689
2023		1,736
2024		1,791
Thereafter		48,768
Total lease payments	$	55,219
Less: interest		(34,536	)
Total finance lease liability	$	20,683

Balance Sheet Information Related to Leases

Leases	March 31, 2021

Operating right-of-use assets	$	1,787

Operating current lease liabilities		683
Operating noncurrent lease liabilities		1,299
Total operating lease liabilities	$	1,982

Finance right-of-use assets	$	50,311
Finance current lease liability		1,655
Finance noncurrent lease liability		19,028
Total finance lease liability	$	20,683

Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	226
Cash flows from finance lease	$	408
Weighted-average remaining lease term - operating leases	2.7 years
Weighted-average remaining lease term - finance lease	23.4 years
Weighted-average discount rate - operating leases		4.90	%
Weighted-average discount rate - finance lease		8.96	%

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
2021 Convertible Notes [Member]
Additional Information in Fair Value Disclosure [Abstract]
Fair value convertible note	$ 8,100
2022 Convertible Notes [Member]
Additional Information in Fair Value Disclosure [Abstract]
Fair value convertible note	53,100
Recurring [Member]
Assets [Abstract]
Cash and cash equivalents	235,899	$ 264,325
Investments	213,813	185,621
Fair value of financial instruments	449,712	449,946
Recurring [Member] \| Money Market Mutual Funds [Member]
Assets [Abstract]
Cash and cash equivalents	235,899	193,312
Recurring [Member] \| United States Treasury Securities [Member]
Assets [Abstract]
Cash and cash equivalents		62,497
Investments	107,566	112,328
Recurring [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		501
Investments	100,247	63,710
Recurring [Member] \| Municipal Bonds [Member]
Assets [Abstract]
Investments	6,000	6,000
Recurring [Member] \| Agency Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		8,015
Investments		3,583
Recurring [Member] \| Level 1 [Member]
Assets [Abstract]
Cash and cash equivalents	235,899	255,809
Investments	107,566	112,328
Fair value of financial instruments	343,465	368,137
Recurring [Member] \| Level 1 [Member] \| Money Market Mutual Funds [Member]
Assets [Abstract]
Cash and cash equivalents	235,899	193,312
Recurring [Member] \| Level 1 [Member] \| United States Treasury Securities [Member]
Assets [Abstract]
Cash and cash equivalents		62,497
Investments	107,566	112,328
Recurring [Member] \| Level 1 [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		0
Investments	0	0
Recurring [Member] \| Level 1 [Member] \| Municipal Bonds [Member]
Assets [Abstract]
Investments	0	0
Recurring [Member] \| Level 1 [Member] \| Agency Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		0
Investments		0
Recurring [Member] \| Level 2 [Member]
Assets [Abstract]
Cash and cash equivalents	0	8,516
Investments	106,247	73,293
Fair value of financial instruments	106,247	81,809
Recurring [Member] \| Level 2 [Member] \| Money Market Mutual Funds [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Recurring [Member] \| Level 2 [Member] \| United States Treasury Securities [Member]
Assets [Abstract]
Cash and cash equivalents		0
Investments	0	0
Recurring [Member] \| Level 2 [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		501
Investments	100,247	63,710
Recurring [Member] \| Level 2 [Member] \| Municipal Bonds [Member]
Assets [Abstract]
Investments	6,000	6,000
Recurring [Member] \| Level 2 [Member] \| Agency Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		8,015
Investments		3,583
Recurring [Member] \| Level 3 [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Investments	0	0
Fair value of financial instruments	0	0
Recurring [Member] \| Level 3 [Member] \| Money Market Mutual Funds [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Recurring [Member] \| Level 3 [Member] \| United States Treasury Securities [Member]
Assets [Abstract]
Cash and cash equivalents		0
Investments	0	0
Recurring [Member] \| Level 3 [Member] \| Corporate Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		0
Investments	0	0
Recurring [Member] \| Level 3 [Member] \| Municipal Bonds [Member]
Assets [Abstract]
Investments	$ 0	0
Recurring [Member] \| Level 3 [Member] \| Agency Bonds [Member]
Assets [Abstract]
Cash and cash equivalents		0
Investments		$ 0