Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events

Subsequent Events

12. Subsequent Events

In July 2018, the Company entered into the First Amendment to its 2017 Credit Facility (the “Amended Credit Facility”). The Amended Credit Facility extends the period of interest-only payments through December 31, 2018, followed by fixed principal and interest payments based on a 24-month amortization schedule. If the Company achieves certain milestones, the loan will be based on a 36-month amortization schedule. The terms of the Amended Credit Facility include the return by Silicon Valley Bank of principal payments previously made by the Company. The Company is required to comply with certain covenants under the Amended Credit Facility, including requirements to maintain a minimum liquidity ratio, meet certain revenue targets, and restrictions on certain actions without the consent of the lender, such as the disposal and acquisition of its business or property, changes in business, and mergers or acquisitions. An end of term fee of 7% of the amount borrowed must be made when the loan is prepaid or repaid, whether at maturity or as a result of a prepayment or acceleration or otherwise. 

In conjunction with the Amended Credit Facility, outstanding warrants held by SVB to purchase 9,229 shares of the Company’s common stock were cancelled. The Company subsequently issued a warrant to SVB for the purchase of 9,375 shares of the Company’s common stock at an exercise price of $8.91 per share. The warrant can be exercised at any time and expires five years after the date of issuance.

In August 2018, the Company amended its lease agreement for its Arizona manufacturing facility to extend the lease term through January 2021. The aggregate rent expense be recognized over the remaining term of the lease is $2.4 million.