6. 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 four amendments to the LSA (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. 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 December 31, 2016, of our outstanding term loan balance of $5.3 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 $459 thousand, $461 thousand and $117 thousand for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, we had accrued interest of $31 thousand. There are no financial covenants associated with these term loans. As of December 31, 2016, we were in compliance with all non-financial covenants.

Vendor Debt

In August 2015, the Company 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, which was fully paid as of December 31, 2016.

Maturities of our debt obligations over the next five years are as follows (in thousands):


	Debt Maturities
2017	$	3,500
2018		1,750
Total maturities	$	5,250