Loan and Security Agreement |
9 Months Ended |
|---|---|
Sep. 30, 2021 | |
| Debt Disclosure [Abstract] | |
| Loan and Security Agreement |
6. Loan and Security Agreement The Company entered into loan and security agreements with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”) in both August 2017 and February 2020. 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, 2020, or as further described below, for additional information. In connection with entering into the loan and security agreement in February 2020, the Company issued to the lenders warrants exercisable for 81,257 shares of the Company’s common stock (the “2020 Warrants”). The 2020 Warrants are exercisable in whole or in part, immediately, and have a per share exercise price of $9.23, which is the closing price of the Company’s common stock reported on the Nasdaq Global Market on the day prior to the effective date of the February 2020 loan and security agreement. The 2020 Warrants will terminate on the earlier of February 28, 2030 or the closing of certain merger or consolidation transactions. The estimated fair value upon issuance of the Warrants of $0.6 million was recorded as a debt discount on the associated borrowings on the Company’s balance sheet. The debt discount is being amortized to interest expense over the expected repayment period of the loan using the effective-interest method. As of September 30, 2021, the Company has classified $6.3 million of the outstanding debt balance as current and $18.7 million as non-current, which reflects the scheduled repayment terms under the February 2020 loan and security agreement. As of both September 30, 2021 and December 31, 2020, accrued interest expense was $0.2 million. During the three and nine months ended September 30, 2021, the Company recorded interest expense related to loans outstanding of $0.7 million and $1.9 million, respectively, with average interest rates of 8.07% in both periods, and interest related to the accretion of debt discount of $0.1 million and $0.4 million, respectively. During the three and nine months ended September 30, 2020, the Company recorded interest expense related to loans outstanding of $0.7 million and $1.7 million, respectively, with average interest rates of 8.07% and 8.08%, respectively, and interest related to the accretion of debt discount of $0.1 million and $0.3 million, respectively. |