DEBT FINANCING

9 Months Ended

Sep. 30, 2020

Long term debt consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Principal amount of long term debt	$	26,000	$	26,000
Debt discount	(351)		(456)
Deferred financing fees	(534)		(647)

Long term debt, net	$	25,115	$	24,897

In January 2018, the Company entered into a Loan and Security Agreement. Under the Loan and Security Agreement, the Company granted the lender a first priority security interest in all assets of the Company, excluding intellectual property and granted a negative pledge on such intellectual property. The interest rate was LIBOR plus 8.50% per annum.

In October 2018, the Company amended its Loan and Security Agreement to extend the interest only period through January 2021 and the maturity date to January 2023 if certain conditions were met. The conditions per the agreement were met upon the completion of the IPO in May 2019. Additionally, per the amended agreement, the monthly principal payments of $1.1 million were to commence in February 2021 for 24 months. The interest rate was not changed through the amendment.

On August 28, 2020, the Loan and Security Agreement was further amended to, among other things; (i) extend the date on which repayment of principal commences until November 2021, (ii) provide for further extensions of the date on which repayment of principal commences to January 2022 and May 2022, provided that certain specified regulatory and clinical milestones are satisfied by the Company, (iii) increase the final payment fee from 5.35% to 6.35% and (iv) add a 0.20% floor to the LIBOR rate. The interest rate was 8.70% as of September 30, 2020.

For the nine months ended September 30, 2020 and 2019, interest expense arising from the amortization of the debt discount and deferred financing fees was $0.3 million and $0.4 million, respectively.

Terminal Interest Fee

The Company's debt facility includes a terminal interest fee obligation totaling $1.7 million, which is due with the final principal payment of the loan and has been modified from time to time as the facilities were amended. The Company is accruing the terminal fee obligation over the term of the facility. The carrying value of the terminal interest fee was $1.0 million and $0.9 million at September 30, 2020 and December 31, 2019, respectively.

The scheduled principal maturity of the long term debt as of September 30, 2020 is as follows (in thousands):


Year Ending December 31,
2021	$	2,167
2022	13,000
2023	10,833

	$	26,000