5. Notes Payable

Long-term debt consisted of the following:


	As of			As of
	December 31,			June 30,
	2010			2011
Notes payable to Mid Cap Financial, or Mid-Cap, and Silicon Valley Bank, or SVB, with fixed interest rate of 9.75%, monthly payments through September 1, 2013	$	15,000,000		$	13,662,869

Less unamortized discount		(196,111	)		(133,598	)

		14,803,889			13,529,271
Less current portion		(4,318,078	)		(5,606,830	)

	$	10,485,811		$	7,922,441

The Company was required to make interest-only payments on the notes payable to Mid-Cap and SVB each month through March 2011, and principal and interest payments of $566,612 monthly started April 1, 2011. The loan is collateralized by a security interest in all of the Company’s assets, excluding intellectual property. The loan agreement includes customary covenants, including those that require prior written consent of the lenders before the Company can incur or prepay indebtedness, create additional liens, sell, or transfer any material portion of its assets. The loan agreement also contains customary events of defaults, and also includes a material adverse effect clause. The Company is in compliance with all material covenants and other obligations in the loan agreement.