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Long-Term Debt and Other Financing Arrangements
 12 Months Ended
Dec. 31, 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:

December 31, 2022December 31, 2021
Term loan payable to SVB, maturing on April 1, 2024$8,000 $14,000 
Financed insurance premium2,3532,534
Total debt10,353 16,534 
Less: current portion(10,353)(8,534)
Less: debt discount and debt issuance costs— (7)
Total long-term debt, net$— $7,993 

Third Amended and Restated Loan and Security Agreement

On November 23, 2022, the Company entered into the Third Amended and Restated Loan and Security Agreement (the “LSA”) with Silicon Valley Bank. The LSA amended, restated and replaced in its entirety the prior Second Amended and Restated Loan and Security Agreement, dated April 22, 2020, and all prior amendments. On March 27, 2023, the Company entered into the first amendment to the LSA with Silicon Valley Bank, now a division of First Citizens Bank and Trust Company (the “SVB Amendment”), that (i) deferred certain payments of principal by the Company until September 1, 2023, (ii) had Silicon Valley bank waive certain stated events of default, (iii) to expand the eligibility of inventory and accounts that the Company can borrow against, (iv) to modify certain financial covenants required of the Company, and (v) certain other revisions in the first amendment.

Line of Credit

The LSA provides for a $17,500 revolving line of credit (the “SVB Revolver”), with a reduced maximum availability of $10,000 as of December 31, 2022. 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 the maximum borrowing base availability.

The SVB Revolver facility matures and terminates on April 22, 2024. As of December 31, 2022, the SVB Revolver bore interest on the outstanding principal amount at a floating rate per annum equal to the greater of (i) 5.00% and (ii) the prime rate plus the prime rate margin, which is 1.25% or 1.75%, dependent upon the Company's liquidity, as defined by the LSA.

Term Loan

The LSA also provided for an $8,500 term loan (the “Term Loan”), replacing the term loans made under the previous agreement, of which $8,000 was outstanding as of December 31, 2022. The Term Loan amortizes with equal monthly installments of $500 and matures on April 1, 2024.

The Term Loan accrues interest on the outstanding principal amount at a floating rate per annum equal to the greater of (i) five and three-quarters percent (5.75%) and (ii) the prime rate plus the prime rate margin (as defined in the LSA), and such interest is payable (a) monthly in arrears, (b) on each prepayment date and (c) on the Term Loan Maturity Date. All outstanding principal and accrued and unpaid interest and all other Term Loan-related outstanding obligations shall become due and payable in full on the Term Loan maturity date.

The Company believes that the fair value of the Term Loan approximates the recorded amount as of December 31, 2022 and 2021, as the interest rates on the long-term debt are variable and the rates are based on market interest rates (bank's prime rate) after consideration of default and credit risk (using Level 2 inputs).

Fees and Other Terms

Fees payable under the LSA include potential prepayment fees on the Term Loan between 1.00% to 2.50% on the outstanding principal, a termination fee on the SVB Revolver between 2.00% to 2.50%, an anniversary fee equal to 0.25% per annum of the outstanding portion of the SVB Revolver, an unused line of credit facility fee equal to two-tenths percent (0.20%) per annum of the average unused portion of the SVB Revolver, and a final payment fee equal to $450 due on the earlier of full repayment of the Term Loan or termination of the LSA.
Other terms of the LSA include liquidity threshold covenants greater than (a) $15,000 through and including December 31, 2022, and (b) $25,000 from and at all times after January 1, 2023, and (ii) certain minimum net revenue covenants that are measured quarterly for fiscal quarters through December 31, 2023.

As of December 31, 2022, the Company was in violation of its minimum liquidity requirement and its minimum net revenue requirement for the three months ended December 31, 2022 under the LSA. As a result, the $8,000 term note and the Company’s line of credit with $4,685 of outstanding borrowings are presented as current liabilities.

In March 2023 the Company further amended its financing arrangement with SVB, under which the principal payments on the term note will be deferred until September 2023. This most recent amendment also revised the financial covenants for future periods.

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").

Paycheck Protection Program Loan

In April 2020, the Company received proceeds from the Small Business Administration Paycheck Protection Program (‘‘PPP’’) in the amount of $2,075, with SVB as lender for the loan (the ‘‘PPP Loan’’), under the Federal Coronavirus Aid, Relief, and Economic Security Act (the ‘‘CARES Act’’).

Under the terms of the PPP Loan, interest accrued on the outstanding principal at a rate of 1.0% per annum. The term of the PPP Loan was two years, unless payment was required in connection with an event of default under the PPP Loan.

On June 15, 2021, the Company received forgiveness for the PPP Loan for the full amount of $2,075 of principal and $24 in interest. As a result of the PPP Loan being forgiven, the Company recognized a $2,098 gain on the consolidated statements of operations and comprehensive loss for year ended December 31, 2021.

Future Aggregate Maturities

As of December 31, 2022, future aggregate maturities of Term Notes and Financed Insurance Premium payables were as follows:

Years Ending December 31,
Amount
20238,353 
20242,000 
Total$10,353