Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies  
Commitments and Contingencies

Note 7 - Commitments and Contingencies


On October 27, 2017, the Company entered into a lease agreement with WCS - 377 Plantation Street, Inc., a Massachusetts nonprofit corporation. Pursuant to the terms of the lease agreement, we agreed to lease 27,043 square feet from the landlord, located at 377 Plantation Street in Worcester, MA (the “Facility”), through November 2026, subject to additional extensions at the Company’s option. Base rent, net of abatements of $0.6 million over the lease term, totals approximately $3.6 million, on a triple-net basis.

The terms of the lease also require that we post an initial security deposit of $0.8 million, in the form of $0.5 million letter of credit and $0.3 million in cash, which increased to $1.3 million ($1.0 million letter of credit, $0.3 million in cash) on November 1, 2019. After the fifth lease year, the letter of credit obligation is subject to reduction.

The Facility began operations for the production of personalized CAR T and gene therapies in 2018.

The Company leases office space and copiers under agreements classified as operating leases that expire on various dates through 2026. The Company’s lease liabilities result from the lease of its Facility in Massachusetts, which expires in 2026, and its copier, which expires in 2021. Such leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Certain of the Company’s leases include renewal options and escalation clauses; renewal options have not been included in the calculation of the lease liabilities and right of use assets as the Company is not reasonably certain to exercise the options. The Company does not act as a lessor or have any leases classified as financing leases. At December 31, 2019, the Company had operating lease liabilities of $2.1 million and right of use assets of $1.2 million, which were included in the Balance Sheet.

The following summarizes quantitative information about the Company’s operating leases:








For the Year Ended

($ in thousands)


December 31, 2019

Lease cost




Operating lease cost




Variable lease cost
















For the Year Ended


($ in thousands)


December 31, 2019


Operating cash flows from operating leases





Weighted-average remaining lease term – operating leases





Weighted-average discount rate – operating leases






Maturities of our operating leases, excluding short-term leases, are as follows:






($ in thousands)




Year ended December 31, 2020




Year ended December 31, 2021




Year ended December 31, 2022




Year ended December 31, 2023












Less present value discount




Operating lease liabilities