XML 23 R11.htm IDEA: XBRL DOCUMENT v3.5.0.2
Notes Payable
9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Notes Payable
6. Notes Payable

Loan and Security Agreement
 
In August 2015, the Company entered into Amendment No. 2 to the Loan and Security Agreement, whereby the Company agreed to maintain, in a separate account with a financial institution (held in the Company’s name), an amount equal to the aggregate of the remaining future principal, interest and exit fee due under the Loan and Security Agreement, equating to $8.3 million as of the date of Amendment No. 2. Under the terms of the Loan and Security Agreement, as amended, MidCap Financial was permitted to draw payments from this account as they become due, and upon such draws, there would be a corresponding reduction in the amount owed to MidCap Financial by the Company. MidCap Financial had exclusive control to withdraw funds from that account at any time. The account was to be maintained either until the debt has been repaid in full, or until MidCap Financial determined that the Company has satisfied certain capital requirements related to the Company’s future operating plans. As of September 30, 2015, the Company had $7.8 million in this restricted account.
 
In November 2015, the Company elected to exercise its prepayment right to repay the loan in full and paid MidCap Financial $6.6 million in full settlement of the remaining outstanding principal balance, accrued interest, the exit fee and a reduced prepayment fee of 1%.  The prepayment resulted in a gain on extinguishment of debt of $61,000 in the fourth quarter of 2015.
 
As of September 30, 2015, the Company classified the loan as a current liability.  Refer to Note 10 for additional details regarding the repayment of the Loan and Security Agreement.