Note 6 - Note Payable
|9 Months Ended|
Sep. 30, 2021
|Notes to Financial Statements|
|Debt Disclosure [Text Block]||
On May 22, 2017, the Company entered into a Term Loan Agreement as amended on December 12, 2017 and November 29, 2018 (collectively the “2017 Loan Agreement”) with affiliates of CRG LP (“CRG”). The credit facility consists of $20,000,000 drawn at closing and access to additional funding of up to an aggregate of $10,000,000 for a total of $30,000,000 available under the credit facility. On December 29, 2017, the Company accessed the remaining $10,000,000 available under the credit facility.
On November 12, 2019, the Company and CRG amended the 2017 Loan Agreement (the “Amendment No. 3”). In connection with the amendment, the Company converted approximately $28,981,000 of 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 31,300 shares of the newly authorized Series B convertible preferred stock and warrants to purchase up to 989,379 shares of common stock were also issued. The warrants have a term of 5 years and an exercise price equal to 120% of the Series convertible B preferred stock conversion price of $15.30 or $18.36 per share. (See Note 11 – Common Stock.) CRG entered into a one year lock up agreement on all securities that it holds.
The Amendment No. 3 to the 2017 Loan Agreement addressed, among other things:
Pursuant to the Amendment No. 3, the Company paid interest in-kind of $154,000 and $443,000 during the three and nine months ended September 30, 2021 which was added to the total outstanding principal loan amount. During the three and nine months ended September 30, 2020, the Company paid interest in-kind of $136,000 and $443,000, respectively, which was added to the total outstanding principal loan amount. Additionally, the back-end facility fee of $1,446,000 is due upon maturity, of which the Company had accrued $747,000 included in other noncurrent liabilities on the condensed consolidated balance sheet as of September 30, 2021.
As of September 30, 2021, the Company was in compliance with all covenants.
As of September 30, 2021 and December 31, 2020, $4,964,000 and $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.
As of September 30, 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