Annual report [Section 13 and 15(d), not S-K Item 405]

DEBT

v3.25.4
DEBT
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
The following table summarizes loans payable, net (in thousands):
As of December 31,
2025 2024
Principal outstanding $ 52,500  $ 60,000 
Unamortized debt issuance costs (206) (320)
Principal outstanding, net of unamortized debt issuance costs $ 52,294  $ 59,680 
Reported as:
Loans payable, net, current portion $ 29,812  $ 7,272 
Long-term portion of loans payable, net 22,482  52,408 
$ 52,294  $ 59,680 
The outstanding loans payable as of the periods presented was related to our Credit Agreement with MidCap entered on September 27, 2019 (Closing Date) and amended on March 29, 2021 (First Amendment), February 11, 2022 (Second Amendment), July 27, 2022 (Third Amendment), and April 11, 2024 (Fourth Amendment). The Credit Agreement provides for a $60.0 million term loan credit facility.
Under the amended Credit Agreement, the term loans mature on September 1, 2027, and the interest-only period is through October 1, 2025. The interest rate applicable to the term loans under is the sum of one-month SOFR, plus an adjustment of 0.11448%, subject to 4.00% applicable floor, plus applicable margin of 6.50%. A final payment fee of 4.25% of principal is due at maturity date of the term loans. Prior to the Fourth Amendment to the Credit Agreement, the term loans would mature on September 1, 2026, and the interest-only period was through October 1, 2024. The term loans bore interest rate equal to the sum of one-month SOFR, plus an adjustment of 0.11448%, subject to 1.50% applicable floor, plus applicable margin of 5.65%, and a final payment fee of 2.50% of principal due at maturity date.
We may make voluntary prepayments, in whole or in part, subject to certain prepayment premiums and additional interest payments. The Credit Agreement also contains certain provisions, such as event of default and change in control provisions, which, if triggered, would require us to make mandatory prepayments on the term loan, which are subject to certain prepayment premiums and additional interest payments. The obligations under the amended Credit Agreement are secured by a perfected security interest in all of our assets including our intellectual property.
Interest expense, including amortization of the debt discount and accretion of the final fees related to the Credit Agreement for the years ended December 31, 2025, 2024 and 2023 were $7.3 million, $7.9 million and $6.8 million, respectively. Accrued interest of $2.6 million and $2.1 million as of December 31, 2025 and 2024, respectively, was included within other current liabilities in the balance sheet.
The following table presents the future minimum principal payments of the outstanding loan as of December 31, 2025 (in thousands):
For the year ending December 31,
2026 $ 30,000 
2027 22,500 
Principal amount (Tranches 1, 2, 3 and 4) $ 52,500 
The amended Credit Agreement contains certain covenants which, among others, require us to deliver financial reports at designated times of the year and maintain minimum unrestricted cash and trailing net revenues. As of December 31, 2025, we were not in violation of any covenants.