Note 14. Subsequent Events

On August 4, 2015, the Company entered into an amendment to the loan and security agreement with its lenders, Oxford Finance LLC and Silicon Valley Bank. The amendment extended the interest-only payment period through April 1, 2016. It further changed the prepayment fee schedule such that the Company will be obligated to pay a prepayment fee equal to (i) 3% of the principal amount prepaid if the growth term loan is prepaid on or before the first anniversary of the amendment, (ii) 2% of the principal amount repaid if the growth term loan is prepaid after the first anniversary but on or prior to the second anniversary of the amendment and (iii) 1% of the principal amount repaid if the growth term loan is repaid after the second anniversary of the amendment and prior to maturity. The amendment increased the final payment percentage to 4.75%. The amendment also extended the draw period for the second $5.0 million tranche of borrowings available to the Company to the earlier of March 31, 2016 or the occurrence of an event of default, and altered the repayment schedule to allow for repayment of borrowed principal over the course of 30 months beginning April 1, 2016.

On August 4, 2015, the Company entered into amendments to its Tucson, Arizona facility lease agreements with its landlord. Pursuant to the terms of these amendments, both lease terms will be extended for five years. In addition, both facilities will undergo leasehold improvements to expand and improve our existing operations facilities. The lease amendments include an increase in our monthly rents for landlord borne facilities costs of approximately $804,000 over the term of the five year extensions. In addition to these lease term extensions, the Company expects to enter into a construction contract in the third quarter of 2015 for the expansion and improvement of its laboratory and office spaces, representing an expected additional commitment of approximately $500,000. The leasehold improvements to both of the Company’s leased facilities are expected to be completed in the first half of 2016.

As a result of the amendments the Company’s annual minimum lease payments before common area maintenance charges, which will commence in 2016 and continue through 2020 are as follows:

2016	$	507,948
2017		510,323
2018		512,734
2019		515,181
2020		517,664