Note 6 - Note Payable
|3 Months Ended|
Mar. 31, 2021
|Notes to Financial Statements|
|Debt Disclosure [Text Block]||
May 22, 2017,the Company entered into a Term Loan Agreement as amended on
December 12, 2017and
November 29, 2018 (collectively the
“2017Loan Agreement”) with affiliates of CRG LP (“CRG”). The credit facility consists of
$20,000,000drawn at closing and access to additional funding of up to an aggregate of
$10,000,000for a total of
$30,000,000available under the credit facility. On
December 29, 2017,the Company accessed the remaining
$10,000,000available under the credit facility.
November 12, 2019,the Company and CRG amended the
2017Loan Agreement (the “Amendment
3”). In connection with the amendment, the Company converted approximately
$28,981,000of the outstanding principal amount under the term loan plus accrued interest, the prepayment premium and the back-end facility fee for an aggregate amount of converted debt obligations of approximately
$31,300,000.The debt obligations converted into
31,300shares of the newly authorized Series B convertible preferred stock and warrants to purchase up to
989,379shares of common stock were also issued. The warrants have a term of
5years and an exercise price equal to
120%of the Series convertible B preferred stock conversion price of
$18.36per share. (See Note
11– Common Stock.) CRG entered into a
oneyear lock up agreement on all securities that it holds.
2017Loan Agreement addressed, among other things:
Pursuant to the Amendment
3,the Company paid interest in-kind of
March 31, 2021and
2020,respectively, which was added to the total outstanding principal loan amount.
March 31, 2021,the Company was in compliance with all covenants.
March 31, 2021and
December 31, 2020,
$4,518,000,respectively, was recorded on the condensed consolidated balance sheets, as note payable, noncurrent portion, which is net of the remaining unamortized debt discount. The term loan has a maturity date of
March 31, 2023.
March 31, 2021,future minimum payments under the note payable were as follows (in thousands):
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef