Loan and Security Agreement |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Debt Disclosure [Abstract] | |
| Loan and Security Agreement |
6. Loan and Security Agreement The Company entered into a Loan and Security Agreement with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) in February 2020 (the “LSA”). See “Note 7. Loan and Security Agreement” to the Company’s Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2022, or as further described below, for additional information. In June 2022, the Company entered into an amendment to the LSA with Oxford and SVB (the “LSA Amendment”). The LSA Amendment added a financial covenant that requires the Company to maintain a minimum unrestricted cash balance of $10.0 million. The Company was in compliance with the financial covenant under the LSA Amendment as of June 30, 2023. The Loan and Security Agreement previously included a covenant requiring the Company to keep substantially all of its cash and investments with SVB, the substantial majority of which was held in a custodial account with another institution, for which SVB Asset Management was the advisor. In March and April 2023, the Loan and Security Agreement was amended to allow the Company to hold cash and investments at multiple financial institutions. In June 2023, the Company entered into an amendment to the LSA with Oxford and SVB (the “5th LSA Amendment”). Under the 5th LSA Amendment, effective July 1, 2023, the loan will bear interest at the floating per annum rate of interest equal to the greater of (i) 8.07% and (ii) the sum of (a) a specific published 1-month secured overnight financing rate (SOFR) reported on the last business day of the month that immediately precedes the month in which the interest will accrue, plus (b) 0.10%, plus (c) 6.40%. There was an immaterial impact of the 5th LSA Amendment on the financial statements of the Company. As of June 30, 2023 and December 31, 2022, the Company has classified $10.2 million and $12.5 million, respectively, of the outstanding debt balance as a current liability, and zero and $3.8 million, respectively, as a non-current liability, which reflects the scheduled repayment terms under the February 2020 LSA. As of both June 30, 2023 and December 31, 2022, accrued interest expense was $0.1 million. During the three and six months ended June 30, 2023, the Company recorded interest expense related to loans outstanding of $0.4 million and $0.8 million, respectively, with average interest rates of 11.44% and 11.19%, respectively, which includes interest related to the accretion of debt discount of $0.1 million and $0.2 million, respectively. |