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Debt
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Debt

Note 6 - Debt

As of June 30, 2017, the Company’s outstanding short-term debt consisted of the $0.5 million of Bridge Financing Notes (see discussion in Note 2 “Liquidity and management’s plans), net of discounts and offering costs, along with a financing arrangement for the Company’s insurance with a note balance of approximately $0.2 million with a final payment scheduled for January 2018. As of June 30, 2017 and December 31, 2016, the Company’s outstanding long-term debt consisted of the $1.0 million MGHIF Note, net of discounts and financing costs (see Note 4 “2015 MGHIF financing”).   Total principal payments of $0.5 million due in 2017 and $1.0 million are due in 2018.

 

The Company has accounted for the embedded conversion option granted to jVen Capital in the Bridge Financing Notes as a mark-to-market derivative financial instrument carried at fair value.  Changes in fair value of the embedded conversion option are reflected in earnings during the period of change.  The warrants issued to jVen Capital and MGHIF are classified as mark to market liabilities under ASC 480 due to certain put features that allow the holder to put the warrant back to the Company for cash equal to the Black-Scholes value of the warrant upon a change of control or fundamental transaction.  

 

As of June 30, 2017, the Company had drawn down on the first of three Bridge Financing Notes, with $1,000,000 remaining capacity available. The Company drew down on the second Bridge Financing Note on July 5, 2017 and the third Bridge Financing Note was not issued.  The outstanding Bridge Financing Notes were repaid in full subsequent to the closing of the July 2017 Public Offering.  

 

Total interest expense (including amortization of debt discounts and financing fees) on all debt instruments was $53,813 and $26,649 for the three months ended June 30, 2017 and 2016, respectively. Total interest expense (including amortization of debt discounts and financing fees) on all debt instruments was $83,657 and $68,383 for the six months ended June 30, 2017 and 2016, respectively.