Loan and Security Agreement

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Loan and Security Agreement

8. Loan and Security Agreement

On June 29, 2018 the Company entered into a loan agreement with Pacific Western Bank (“PWB Loan Agreement”) providing up to $12.0 million of borrowings, of which $10.0 million was advanced on June 29, 2018. The remaining $2.0 million of borrowings were available to the Company through one additional advance request until December 31, 2019. Borrowings were secured by a lien on all Company assets, excluding intellectual property, and amounts borrowed had a floating per annum interest rate of the greater of 5.0% or the prime rate. The PWB Loan Agreement had a term of 48 months and an interest only period of 18 months. Upon the expiration of the interest only period on December 31, 2019, amounts borrowed were to be repaid over 30 equal monthly payments of principal plus accrued but unpaid interest. At its option, the Company could prepay all, but not less than all, of the outstanding borrowings subject to a prepayment premium as defined in the PWB Loan Agreement. Upon the closing of one or more financings in which the Company receives aggregate gross proceeds of at least $25 million, a success fee of $300,000 would be due and payable to PWB. As a result of the gross proceeds of $15.0 million received from the registered direct offering completed on June 5, 2020, combined with $10.0 million of gross proceeds received from the registered direct offering completed in June 2019, and $2.7 million of gross proceeds received through the At-the-Market offering completed in December 2019, the conditions required to trigger the success fee were fulfilled and the success fee was paid to PWB at the time of the closing of the registered direct offering in June 2020. The success fee was recorded as other expense on the Company’s condensed consolidated statements of operations and comprehensive loss during the three months ended June 30, 2020.

On September 29, 2020, the Company terminated the PWB Loan Agreement and repaid the $7.0 million outstanding principal to PWB. At the time the Company terminated the PWB Loan Agreement, the requirement to make a prepayment premium with respect to the Company prepaying the remaining outstanding borrowings under the PWB Loan Agreement had lapsed and no prepayment penalty payment was required upon termination of the PWB Loan Agreement.