Note 4 - Debt

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

4.

  DEBT

Term Loan Facility

On

August 9, 2017,

the Company entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) that provides for a Term Loan Facility (the “Term Loan Facility” and all amounts borrowed thereunder, the “Term Loan”). Under the Term Loan Facility, the Company borrowed an initial amount of

$7.5

million, and had the right to borrow an additional

$7.5

million on or before

December 31, 2018,

provided that the Company met certain conditions; the Company did

not

meet those conditions.

The Term Loan Facility carries interest at a floating rate of

4.0%

above the prime rate per annum (for a total interest rate of

9.0%

at

September 30, 2019),

with interest payable monthly. All outstanding principal and accrued and unpaid interest under the Term Loan will be due and payable on

February 9, 2021.

The Company

may

elect to prepay the Term Loan Facility prior to the maturity date subject to defined prepayment fees. The Term Loan Facility includes a final payment fee equal to

8.0%

of the original principal amount, which is being accrued using the effective interest method over the term.

The Term Loan Facility is collateralized by substantially all of the Company’s assets, contains certain restrictive covenants, and contains customary events of default. Upon the occurrence of an event of default all amounts owed by the Company would begin to bear interest at a rate that is

5.00%

above the rate effective immediately before the event of default and

may

be declared immediately due and payable by SVB.

In connection with entry into the Term Loan Facility, the Company issued to SVB and

one

of its affiliates stock purchase warrants to purchase an aggregate of

58,502

shares of the Company’s common stock at an exercise price of

$6.41

per share. The warrants are immediately exercisable, have a

10

-year term, contain a cashless exercise provision, and are classified in equity.

As of

September 30, 2019

and

December 31, 2018,

$5.3

million and

$7.5

million of the Term Loan was outstanding, respectively, and was presented in the accompanying consolidated balance sheets net of current unamortized discounts and issuance costs of

$123,832

and

$215,291,

and long-term unamortized discounts and issuance cost of

$13,636

and

$94,615,

respectively. Total interest expense recognized for the

three

months ended

September 30, 2019

and

2018

was

$230,053

and

$290,773,

respectively. Total interest expense recognized for the

nine

months ended

September 

30,

2019

and

2018

was

$792,750

and

$849,457,

respectively.