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Subsequent Event
3 Months Ended
Mar. 31, 2020
Subsequent Events [Abstract]  
Subsequent Event

13. Subsequent Event

On April 22, 2020, the Company entered into a promissory note evidencing the $2.3 million PPP Loan under the PPP.

The PPP Loan is evidenced by a promissory note, dated as of April 22, 2020 (the “Note”), between the Company, as borrower, and Silicon Valley Bank, N.A., as lender (“SVB”). The interest rate on the Note is 1.0% per annum, with interest accruing on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days. No payments of principal or interest are due during the six-month period beginning on the date of the Note (the “Deferral Period”).

Beginning one month following expiration of the Deferral Period, and continuing monthly until 24 months from the date of the Note (the “Maturity Date”), the Company is obligated to make monthly payments of principal and interest to SVB with respect to any unforgiven portion of the Note, in such equal amounts required to fully amortize the principal amount outstanding on the Note as of the last day of the Deferral Period by the Maturity Date. The Company is permitted to prepay the Note at any time without payment of any premium.

The principal and accrued interest under the Note evidencing the PPP Loan are forgivable after eight weeks as long as the Company has used the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the Company terminates employees or reduces salaries during the eight-week period. The Company will be obligated to repay any portion of the principal amount of the Note that is not forgiven, together with interest accrued and accruing thereon at the rate set forth above, until such unforgiven portion is paid in full.

Upon a default under the Note, including the non-payment of principal or interest, the obligations of the Company under the Note may be accelerated and SVB may pursue its rights under the Uniform Commercial Code and any other applicable law or in equity.