Notes Payable	3 Months Ended
Mar. 31, 2017
Notes Payable
Notes Payable	5. Notes Payable In 2014, we borrowed an aggregate of $7.0 million in connection with a Loan and Security Agreement, as amended (LSA). As of March 31, 2017, and pursuant to the terms of the 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 March 31, 2017, of our outstanding term loans aggregate balance of $4.4 million, $3.5 million will be due within the next twelve months, and is classified as the current portion of notes payable on our consolidated balance sheet. Interest expense related to the term loans was $84 thousand and $119 thousand for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, we had accrued interest of $27 thousand. There are no financial covenants associated with these term loans. As of March 31, 2017, we were in compliance with all non-financial covenants.

Notes Payable

3 Months Ended

Mar. 31, 2017

5. Notes Payable

In 2014, we borrowed an aggregate of $7.0 million in connection with a Loan and Security Agreement, as amended (LSA). As of March 31, 2017, and pursuant to the terms of the 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 March 31, 2017, of our outstanding term loans aggregate balance of $4.4 million, $3.5 million will be due within the next twelve months, and is classified as the current portion of notes payable on our consolidated balance sheet. Interest expense related to the term loans was $84 thousand and $119 thousand for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, we had accrued interest of $27 thousand. There are no financial covenants associated with these term loans. As of March 31, 2017, we were in compliance with all non-financial covenants.