Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

Note 7. Debt

Debt at December 31, 2021, consisted of the following (in thousands):

	Principal		Unamortized Discount			Total
Term Loan Credit Agreement	$	55,000	$	(276	)	$	54,724
Less: current portion of term loan		—		—			—
Non-current portion of term loan	$	55,000	$	(276	)	$	54,724

Debt at December 31, 2020, consisted of the following (in thousands):

	Principal		Unamortized Discount			Net Carrying Value
Term Loan Credit Agreement	$	40,000	$	(412	)	$	39,588
Less: current portion of term loan		—		—			—
Non-current portion of term loan	$	40,000	$	(412	)	$	39,588

Principal, interest and fee payments on the Term Loan Credit Agreement (as defined below) at December 31, 2021, are expected to be as follows (in thousands):

Year ended December 31,	Principal		Interest and Fees		Total
2022	$	—	$	4,182	$	4,182
2023		41,250		3,134		44,384
2024		13,750		1,826		15,576
Total	$	55,000	$	9,142	$	64,142

Loan Agreements

On March 29, 2019, the Company entered into a Credit, Security and Guaranty Agreement (Term Loan) (the “Term Loan Credit Agreement”) with MidCap Financial Trust (“MidCap”) to borrow up to $70 million in three tranches (collectively “2019 Term Loan”), with a maturity date of March 1, 2024. The first advance of $40.0 million (“Tranche 1”) was drawn by the Company on March 29, 2019, with the proceeds used in part to repay in full the outstanding term loans and fees under a prior loan agreement. The second advance of $15.0 million (“Tranche 2”) was drawn by the Company on March 29, 2021. The third advance of $15.0 million (“Tranche 3”) expired on December 31, 2021. The borrowings under the 2019 Term Loan bear interest at the sum of a fixed percentage spread and the greater of (i) 1.8% or (ii) one month LIBOR. At December 31, 2021, the effective interest rate on the Term Loan was approximately 7.50%. This debt requires interest-only payments through March 1, 2023, followed by 12 months of payments with interest and equal payment of principal. Prepayments of the 2019 Term Loan under the Term Loan Credit Agreement, in whole or in part, will be subject to early termination fees which decline each year until the fourth anniversary of the applicable funding date, at which time there is no early termination fee. Upon the final payment, the Company must also pay an exit fee calculated based on a percentage of the aggregate principal amount of all tranches advanced to the Company. The Company uses the effective interest method to recognize the final payment over the term of the debt.

The Company also maintains a Credit, Security and Guaranty Agreement (Revolving Loan) (the “Revolving Loan Credit Agreement”) with MidCap. The borrowing limit under the Revolving Loan Credit Agreement is $15.0 million. The amount borrowed under the Revolving Loan Credit Agreement can be increased, upon request by the Company, by up to an additional $5.0 million, subject to agent and lender approval and the satisfaction of certain conditions. The Revolving Loan Credit Agreement has a maturity date of March 1, 2024. Amounts drawn under the Revolving Loan Credit Agreement bear interest at the sum of a fixed percentage spread and the greater of (i) 1.80% or (ii) one-month LIBOR. There are also fractional fees based on the amounts either drawn or undrawn. If the Revolving Loan Credit Agreement is terminated before maturity or the funding obligation is permanently reduced, there are termination fees which decline each anniversary until the third anniversary, at which time there is no termination fee. As of December 31, 2021 and December 31, 2020, the Company had borrowed $14.7 million and $8.5 million under the Revolving Loan Credit Agreement, respectively, which is included in “Debt – current” in the Company’s consolidated balance sheets.

The Term Loan Credit Agreement and Revolving Loan Credit Agreement contain certain financial and non-financial covenants, with which the Company was in compliance at December 31, 2021. Additionally, both agreements are secured by substantially all of the Company’s assets, with some exclusions.