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Short-Term Borrowings and Long-Term Debt
6 Months Ended
Jun. 30, 2011
Short-Term Borrowings and Long-Term Debt [Abstract]  
Short-Term Borrowings and Long-Term Debt
Note 6. Short-Term Borrowings and Long-Term Debt
In May 2009, the Company entered into a loan and security agreement with Silicon Valley Bank (SVB) that provides for up to $4 million of equipment financing through October 2012. Borrowings under the loan agreement are collateralized by equipment purchased with the proceeds of the loan and bear interest at a fixed rate of approximately 9%. The loan agreement contains customary terms and conditions, including a financial covenant whereby the Company must maintain a minimum amount of liquidity measured at the end of each month where unrestricted cash, cash equivalents, and marketable securities is greater than $20 million plus outstanding debt due to SVB. The Company has at all times been in compliance with this covenant during the term of the agreement.
At June 30, 2011, the current and long-term amounts due under the loan agreement were $1.3 million and $0.4 million, respectively. The carrying amount of the Company’s borrowings approximates fair value at June 30, 2011.