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Long-Term Debt and Other Financing Arrangements
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Long-Term Debt and Other Financing Arrangements Long-Term Debt and Other Financing Arrangements
The following is a summary of the Company’s long-term indebtedness as of:

September 30, 2022December 31, 2021
Term note payable to SVB, maturing on April 1, 2024$9,500 $14,000 
Financed insurance premium2,4972,534
Total debt11,997 16,534 
Less: current portion(11,997)(8,534)
Less: debt discount and debt issuance costs— (7)
Total long-term debt, net$— $7,993 


As of September 30, 2022, the Company was in violation of its minimum net revenue requirement for the three months ended September 30, 2022 under the amended and restated loan and security agreement, which governs both the Company’s term loan and its line of credit. As a result, the $9,500 term note and the Company’s line of credit with $5,000 of outstanding borrowings is presented as a current liability.

The Company is actively engaged with SVB to come to terms on a further amended financing agreement, including revised financial and liquidity covenants for future periods. The Company expects to finalize an amended agreement with SVB prior to the end of the fiscal year.
Future Aggregate Maturities

As of September 30, 2022, future aggregate maturities of the Term Note and Financed Insurance Premium (defined below) payables were as follows:

Years Ending December 31,Amount
2022 (excluding the nine months ended September 30, 2022)$2,323 
20237,674 
20242,000 
Total$11,997 

The maturities shown in the table above represent the contractual maturities of the Term Note and Financed Insurance Premium payables as of September 30, 2022. If the Company is unable to come to terms regarding an amendment, and the Company is in violation of its covenants in future periods, SVB can elect to take certain actions, including terminating the line of credit and declaring the principal amount of the Term Note and line of credit as immediately due and payable.

Term Note

The Company has an amended and restated loan and security agreement (the "A&R LSA") with SVB which was entered into on April 22, 2020, and which replaced the loan and security agreement previously in place (the ‘‘Original LSA’’). These agreements provided the Company with both a line of credit (the ‘‘SVB Revolver’’) and a term loan (the ‘‘Term Note’’).

On January 31, 2022, the Company further amended the A&R LSA, which modified the SVB Revolver annual interest rate, decreased the advance rate for borrowing base assets, and increased the cash and cash availability streamline threshold. The amendment also modified the Term Note annual interest rates, replaced the existing EBITDA covenant for 2022 and beyond with a net revenue covenant, and increased the minimum liquidity threshold from $5,000 to $30,000.

As of September 30, 2022, the Term Note had an aggregate principal balance of $9,500, bore interest at a rate equal to the greater of the bank's prime rate plus 2.50%, or 5.75%, and matures on April 1, 2024.

Prior to January 31, 2022, the Term Note bore interest at a rate equal to the greater of the bank's prime rate plus 3.50%, or 6.50%.

The Company's borrowings under the A&R LSA are secured by substantially all of its current and future assets.

Line of Credit

As of September 30, 2022, our borrowing capacity under the SVB Revolver was $17,500 with a reduced line of credit availability of $5,000, and bore interest at an annual rate equal to (i) the greater of the bank’s prime rate plus 0.75%, or 5.00% when a streamline period is in effect and (ii) the greater of the bank’s prime rate plus 1.25%, or 5.00% at all other times. The SVB Revolver is an asset based lending facility subject to borrowing base availability which is limited by specified percentages of eligible accounts receivable and eligible inventory. Borrowing base availability can be impacted based upon the period's eligible accounts receivable and eligible inventory, and may be significantly lower than borrowing base capacity.

Prior to January 31, 2022, the SVB Revolver bore interest at an annual rate equal to (i) the greater of the bank’s prime rate plus 0.75%, or 5.50% when a streamline period is in effect and (ii) the greater of the bank’s prime rate plus 1.25%, or 6.00% at all other times.

Each streamline period commences the first day of the month following a written report of our liquidity and ends the first day after we fail to maintain a required cash and cash availability streamline threshold, provided no event of default has occurred and is continuing. If an event of default has occurred and is continuing, SVB may maintain our streamline status at its discretion. The required cash and cash availability streamline threshold was $50,000 as of September 30, 2022, which the Company did not maintain and was therefore not within a streamline period. The actual interest rate on the SVB Revolver was 7.50% as of September 30, 2022. The SVB Revolver is subject to renewal and is scheduled to mature on April 22, 2024. As of September 30, 2022, there was $5,000 of outstanding borrowings under the SVB Revolver.
Financed Insurance Premium

In July 2022, the Company renewed its corporate directors & officers and employment liability insurance policies and entered into a new short-term commercial premium finance agreement with First Insurance Funding totaling $3,041 to be paid in eleven equal monthly payments, accruing interest at a rate of 4.40% (the "Financed Insurance Premium").