On June 5, 2020, contemporaneously with the completion of its Series B Financing, the Company entered into a Credit Agreement, or the Credit Agreement, with Perceptive Credit Holdings III, LP, an affiliate of Perceptive Advisors LLC, or Perceptive. Perceptive is a considered a related party to the Company based on its ownership of the Company’s common stock. In June 2020, the Company drew down on the first tranche of $12.5 million, which is outstanding as of March 31, 2021. As of March 31, 2021, the Company had met the criteria to draw down on the second tranche of $7.5 million. The Company has the ability, but not the obligation, to draw down the second tranche until June 30, 2021. The borrowing bears interest at a variable rate using the greater of LIBOR or 1.75%, plus 9.50%. The Credit Agreement is secured by a lien on substantially all of the Company’s assets. The Credit Agreement requires the Company to maintain a minimum aggregate cash balance of $3.0 million in one or more controlled accounts and contains various affirmative and negative covenants that limit its ability to engage in specified types of transactions.

The Company is required to make interest-only payments until December 5, 2022, after which point the Company will be required to make payments of principal equal to 2% of the Term Loan until maturity on June 5, 2024, or the Maturity Date. If the Company pays off the Term Loan prior to the Maturity Date, it will be required to pay a prepayment fee of $3.8 million as of March 31, 2021.

Under the terms of the Credit Agreement, Perceptive holds a warrant to purchase up to 338,784 shares of the Company’s common stock at an exercise price of $8.86 per share. The warrant is exercisable at any time prior to the ten-year anniversary of the closing date of the Credit Agreement.

The following table contains the anticipated future minimum payments on long-term debt as of March 31, 2021 for each of the years ending December 31 and a reconciliation to the carrying value of long-term debt on the Company’s condensed consolidated balance sheets (in thousands):

Undiscounted, minimum long-term debt payments:
Remaining 2021	$	—
2022		—
2023		3,000
2024		9,500
Total undiscounted, minimum long-term debt payments		12,500
Less: Unamortized debt issuance costs, and debt discount related to warrant		(2,269	)
Total long-term debt—related party	$	10,231