Notes Payable	9 Months Ended
Sep. 30, 2016
Notes Payable
Notes Payable	5. Notes Payable In April 2014, we borrowed $2.0 million pursuant to a Loan and Security Agreement (LSA) we entered into with a financial institution. Pursuant to the terms of the LSA, we made monthly interest-only payments for outstanding borrowings at an interest rate equal to the greater of (a) prime plus 2.25% or (b) 5.5% until the LSA was amended. In December 2014, February 2015, October 2015, and April 2016 we entered into a First, Second, Third and Fourth Amendment to Loan and Security Agreement (collectively, “the Amended LSA”) with the same financial institution. In connection with the Amended LSA, we borrowed an additional $5.0 million in December 2014. As of September 30, 2016, and pursuant to the terms of the Amended LSA, we were required to make monthly interest-only payments for all outstanding borrowings at an interest rate equal to the greater of (a) prime rate plus 3.25% or (b) 6.5% until June 2016. Commencing in July 2016 and continuing through June 2018, we are required to make monthly payments of 1/24th of our principal borrowings plus interest. As of September 30, 2016, of our outstanding term loan balance of $6.1 million, $3.5 million will be due within the next twelve months, and is classified as the current portion of notes payable on our balance sheet. Interest expense related to the term loans was $116 thousand and $356 thousand for the three and nine months ended September 30, 2016, respectively. As of September 30, 2016, we had accrued interest of $35 thousand. There are no financial covenants associated with these term loans. As of September 30, 2016, we were in compliance with all non-financial covenants. Vendor Debt In August 2015, we entered into a short-term loan agreement with a third-party vendor to finance insurance premiums. The aggregate amount financed under this agreement was $584 thousand. As of September 30, 2016, the premiums were fully paid.

5. Notes Payable

In April 2014, we borrowed $2.0 million pursuant to a Loan and Security Agreement (LSA) we entered into with a financial institution. Pursuant to the terms of the LSA, we made monthly interest-only payments for outstanding borrowings at an interest rate equal to the greater of (a) prime plus 2.25% or (b) 5.5% until the LSA was amended. In December 2014, February 2015, October 2015, and April 2016 we entered into a First, Second, Third and Fourth Amendment to Loan and Security Agreement (collectively, “the Amended LSA”) with the same financial institution.

In connection with the Amended LSA, we borrowed an additional $5.0 million in December 2014. As of September 30, 2016, and pursuant to the terms of the Amended LSA, we were required to make monthly interest-only payments for all outstanding borrowings at an interest rate equal to the greater of (a) prime rate plus 3.25% or (b) 6.5% until June 2016. Commencing in July 2016 and continuing through June 2018, we are required to make monthly payments of 1/24th of our principal borrowings plus interest.

As of September 30, 2016, of our outstanding term loan balance of $6.1 million, $3.5 million will be due within the next twelve months, and is classified as the current portion of notes payable on our balance sheet. Interest expense related to the term loans was $116 thousand and $356 thousand for the three and nine months ended September 30, 2016, respectively. As of September 30, 2016, we had accrued interest of $35 thousand. There are no financial covenants associated with these term loans. As of September 30, 2016, we were in compliance with all non-financial covenants.

Vendor Debt

In August 2015, we entered into a short-term loan agreement with a third-party vendor to finance insurance premiums. The aggregate amount financed under this agreement was $584 thousand. As of September 30, 2016, the premiums were fully paid.