7. Credit Facility

In May 2012, the Company entered into a loan and security agreement with a bank related to an equipment facility providing the Company with an equipment line of up to $4.0 million. In June 2013, the Company entered into a first amendment to the loan and security agreement, which provided an additional line of credit for advances of up to an aggregate of $4.5 million. The interest rate associated with both lines of credit is the greater of 4% or three quarters of a percentage points above the prime rate, as determined on the applicable funding date. For each equipment advance, the Company will pay interest only for approximately nine months. Subsequently, the Company is obligated to make thirty-six equal monthly payments of principal and interest. The loan is secured by a security interest on substantially all of the Company's assets, including the equipment purchased with the advances, and excludes the Company's intellectual property. The loan and security agreement also contains customary events of default including, among other things, that during the existence of an event of default, interest on the obligations could be increased by 5%.

In May 2014, the Company entered into a second amendment to the loan and security agreement to amend various covenants. Under the second amendment the Company is required to maintain compliance with certain financial covenants, which include maintaining a minimum cash balance with the bank and various reporting covenants. As of December 31, 2015, the Company was in compliance with these covenants.

As of December 31, 2015, the outstanding loan balance was $2.7 million.

Contractual future repayments in relation to the above credit facility are as follows for the years ending December 31:

	Principal		Interest		Total
	(in thousands)
2016	$	2,174	$	62	$	2,236
2017		478		4		482

Total	$	2,652	$	66	$	2,718