Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events

Subsequent Events

9. Subsequent Events

In April 2017, the Company repaid the outstanding balance of $1.5 million on the revolving loan included in the 2015 Credit Facility.

In May 2017, the Company executed a Loan and Security Agreement with Silicon Valley Bank for a $12.0 million term loan. The term of the loan is three years, and will be extended by one year if the Company achieves a revenue target of $4.0 million for its Spin-Torque product. The loan bears interest at a floating rate equal to the prime rate minus 0.75% and is payable monthly. The outstanding balance of the loan is to be repaid monthly beginning on May 1, 2018 over the remaining term of the loan. The loan is secured by a first priority perfected security interest in the Company’s assets excluding any intellectual property. A portion of the proceeds was used to pay off the outstanding balance on the Amended 2015 Credit Facility.