10. Term Loan

On February 5, 2016, the Company entered into a loan and security agreement with Hercules Technology Growth Capital, Inc. ("HTGC"), as administrative agent and lender, and Hercules Technology III, L.P., as lender, pursuant to which the lenders made long-term loans to the Company on February 8, 2016 in the aggregate principal amount of $25 million. The loans bear interest at the daily variable rate per annum equal to 6.00% plus the prime rate, or 9.75%, whichever is greater. The interest rate at December 31, 2016 was 9.75%. The Company is required to make interest-only payments on the term loans through February 28, 2017, and beginning on March 1, 2017 it will be required to make amortizing payments of principal and accrued interest in equal monthly installments until the maturity date of the term loans. The Company believes that its debt obligations accrue interest at rates which approximate prevailing market rates for instruments with similar characteristics and, accordingly, the carrying values for these instruments approximate fair value. We are required under the terms of the loans to maintain cash on hand of not less than three months' projected cash burn or $10 million, whichever is greater. The Company is in compliance with all the covenants entered into with the lenders as at December 31, 2016. All outstanding principal and accrued interest on the term loans will be due and payable in full on the maturity date of February 1, 2020.

As security for the Company's obligations under the loan and securities agreement, the Company granted HTGC, as administrative agent, a security interest in substantially all of its existing and after-acquired assets except for its intellectual property and certain other excluded assets.

The following sets forth information regarding the current and long-term portion of the term loan (in thousands):

	December 31, 2016
Term Loan Principal - Current	$	6,214
Loan Discount & Issuance Cost - Current		(732	)
Term Loan, Net - Current	$	5,482

Term Loan Principal	$	18,786
End Fee Payable		1,772
Long Term Loan Discount & Issuance Cost		(2,073	)
Long Term Loan, Net	$	18,485

Interest expense on the term loan was $2.8 million for 2016. There was no interest expense in either 2015 or 2014.

The future principal payments for the Company's term loan as of December 31, 2016 are as follows (in thousands):

2017	$	6,214
2018		8,151
2019		8,995
2020		1,640
Total term loan	$	25,000