In October 2020, the Company entered into a loan facility (“Term Loan”) with an initial draw of $25 million. Proceeds were used to help fund the Company’s ongoing operations. As part of the Term Loan, the lender committed to providing further loans of up to $35 million to the Company at its election (or for one specific draw, upon occurrence of a revenue milestone) during various draw periods in the future, provided the Company is not in default at the time of the additional loan draws. In March 2021, the Company drew an additional $5 million from the facility for the purpose of funding ongoing operations. In June 2021, the Company drew an additional $10 million from the facility for the purpose of funding ongoing operations.

As of September 30, 2021 and December 31, 2020, the Company was in compliance with all covenants.

For the three and nine months ended September 30, 2021, cash interest paid for all borrowings under the Term Loan was 9.25%. The effective interest rate during the three and nine months ended September 30, 2021 was 10.69% and 10.97%, respectively.

As of September 30, 2021 future principal payments due under the Term Loan were as follows (in thousands):


Year Ended December 31,
2021 (remainder)	$	—
2022		—
2023		1,739
2024		20,870
2025		17,391
Total		40,000
Less: unamortized issuance costs and exit fee		(364	)
Term loan, net	$	39,636