Note 7 - Loans Payable

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

7.

Loans payable

On

October 4, 2016,

the Company entered into an agreement with MidCap Financial Trust, (the "MidCap agreement"), that provided it with

$40

million in debt financing, comprised of both a term loan and a revolving line of credit. The MidCap agreement provided the Company with a term loan of

$30

million, which matures

October 4, 2021 (

the "Term Loan"). The Term Loan accrues interest at a rate of LIBOR plus

7.60%

with interest only payments for the

first

24

months, with the ability to extend to

48

months subject to certain conditions, before the loan begins to amortize. In

October 2018,

the Company extended the interest only period by

6

months. The MidCap agreement also provides the Company with a revolving line of credit of up to

$10

million, which matures

October 4, 2021 (

the "Revolving Loan"). The Revolving Loan accrues interest at a rate of LIBOR plus

4.45%.

The Company is also required to pay the lenders an unused line fee equal to

0.50%

per annum of the average unused portion of the Revolving Loan. Based on certain conditions, both the Term Loan and Revolving Loan

may

be increased by an additional

$10

million for a total of

$60

million.

The balance of the secured term loan due to MidCap as of

September 30, 2018

was

$30

million, and was recorded in current liabilities in the accompanying consolidated balance sheet, net of unamortized discount and debt issuance costs.

In connection with the closing of the Transaction on

November 6, 2018,

approximately

$33

million of the gross proceeds received pursuant to the Transaction, was paid directly to MidCap to repay the outstanding indebtedness under the MidCap agreement, which included prepayment and exit fees of approximately

$3

million. In connection with the Company’s repayment of the outstanding indebtedness under the MidCap Agreements, the Term Loan and the Revolving Loan, and all related agreements thereunder, were terminated and all borrowings outstanding thereunder were repaid in full (see Note

15.

Subsequent events

).

The Company had never borrowed under the revolving line of credit.