Note 6 - Loans Payable - Current and Non-current Portions

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Short-term Debt [Text Block]

Note

6

- Loans Payable - Current and Non-Current Portions

O-Bank Co., Ltd. Credit Facility

In

September 2016,

CVie Therapeutics Limited entered into a

12

-month revolving credit facility of approximately

$2.9

million with O-Bank Co., Ltd., or O-Bank, to finance operating activities, or the O-Bank Facility. The O-Bank Facility was later renewed and increased to approximately

$5.8

million in

September 2017.

The O-Bank Facility is guaranteed by Lee's Pharmaceutical Holdings Limited, or Lee's, which pledged bank deposits in the amount of

110%

of the actual borrowing amount. Interest, payable in cash on a monthly basis, was determined based on the

90

-day Taipei Interbank Offer Rate, or TAIBOR, plus

0.91%.

The O-Bank Facility expired on

September 11, 2019

and the loans were set to mature

six

months after the expiration date, on

March 11, 2020.

In

March 2020,

the O-Bank Facility was amended, among other things, to extend the maturity date to

March 2022,

to decrease the total amount of the O-Bank Facility to approximately

$5.0

million, to change the applicable interest rate to the TAIBOR plus

1.17%

and to adjust the term to

24

-month non-revolving.

In the

second

quarter of

2020,

we were informed by Lee's of their desire to reduce the amount of pledged bank deposits with O-Bank by

50%

. To remain in compliance with the terms of the O-Bank Facility, we repaid approximately 

$2.3

million of the outstanding principal in

August 2020. 

In

November 2020,

Lee's committed to maintain the required level of pledged bank deposits with O-Bank through the date of full repayment of the O-Bank Facility.

As of

March 31, 2021

and

December 31, 2020

, the outstanding principal of the O-Bank Facility was approximately 

$2.4

million. As of

March 31, 2021

, the outstanding principal is classified as loans payable - current portion as it is due within

one

year of the balance sheet date. As of

December 31, 2020,

the outstanding principal was classified as loans payable - non-current portion.

Loan Payable to Bank Direct Capital Finance

In

June 2020,

we entered into an insurance premium financing and security agreement with Bank Direct Capital Finance, or Bank Direct. Under the agreement, we financed 

$1.1

million of certain premiums at a 

4.26%

annual interest rate. Payments of approximately

$117,000

 were due monthly from

July 2020

through

March 2021. 

As of 

December 31, 2020,

the outstanding principal of the loan was 

$0.4

 million. The balance of the loan was repaid during the

first

quarter of

2021

and there was

no

outstanding balance on the loan as of

March 31, 2021

.