Notes Payable

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Notes Payable

Notes Payable

On May 23, 2018, the Company entered into a Loan and Security Agreement with East West Bank (“EWB”) providing it the ability to borrow up to $20.0 million. The loan facility was fully drawn as of May 23, 2018.

On June 30, 2021, the Company entered into an Amended and Restated Loan and Security Agreement (the “Agreement”) with East West Bank. Pursuant to the Agreement, EWB provided a $20.0 million term loan (“the Term Loan”) which shall be used to refinance the term loan outstanding under the Loan and Security Agreement dated May 23, 2018. The Term Loan matures in 48 months and bears interest at a fixed rate of 4.17%. The Term Loan has an initial interest-only period of 24 months, which can be extended to up to 36 months based on the achievement of certain liquidity measures, and can be pre-paid without penalty at any time. The Agreement grants EWB a security interest in and liens on all assets of the Company, excluding intellectual property, which is subject to a double negative pledge. In addition, certain other terms of the original agreements as previously in effect were amended by the Agreement, including certain financial covenants. The Amended and Restated Loan and Security Agreement was accounted for as a debt modification and the Company capitalized incremental debt issuance costs.

Furthermore, the Agreement also provided the Company with a new $10.0 million revolving credit (the “Revolving Line”), which bears interest on the outstanding daily balance thereof of 0.70% above the Prime Rate (as defined in the Agreement). No amounts were outstanding under the Revolving Line as of June 30, 2021.

The following is a schedule of payments due on notes payable as of June 30, 2021 (in thousands):

	June 30, 2021
Year Ending December 31:
Remainder of 2021	$	431
2022	846
2023	6,617
2024	10,405
2025	4,210
Total payments due	22,509
Less:
Interest payments, loan discounts and financing costs	(2,836)
Current portion, less loan discounts and financing costs	—
Notes payable, net of current portion	$	19,673

Total interest cost incurred for the three and six months ended June 30, 2021 was $0.4 million and $0.7 million, respectively. Total interest cost incurred for the three and six months ended June 30, 2020 was $0.4 million and $0.7 million, respectively.