Long-Term Loan, Net of Discount and Issuance Costs

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Long-Term Loan, Net of Discount and Issuance Costs

Note 10: Long-term loan, net of discount and issuance costs

In January 2015, the Company entered into a five-year term loan agreement (the “Term Loan Credit Facility”) with a lender to draw up to $100,000. In January 2015, the Company drew $25,000 from the lender and the remaining $75,000 was drawn in July 2016. As of December 31, 2017 and 2016, there was $100,000 principal outstanding under the Term Loan Credit Facility.

Interest on the Term Loan Credit Facility is 10% annually, payable quarterly in arrears. In addition, there is a 1.5% funding fee payable on the amount drawn on the funding date, a 0.75% pay-down fee on all principal amount repayments to be paid on the date such payments of principal are made and a pre-payment fee of 3.0%, 2.0% or 1.0% if the Company prepays outstanding loan amounts prior to the first, second or third year anniversaries, respectively, from the initial funding date. The entire outstanding principal loan is due in January 2020. The loan is secured by a first priority security interest in substantially all assets of the Company. The Term Loan Credit Facility sets forth certain affirmative and negative covenants with which the Company must comply on a quarterly basis commencing March 31, 2015 through the term of loan. As of December 31, 2017, the Company was in compliance with such covenants.

As of December 31, 2017 and 2016, the total discount of $1,204 and $1,699, respectively, and additional issuance costs of $1,454 and $2,070, respectively, are presented net of the loan and are amortized to interest expense over the five year term of the loan using the effective interest method.  On February 7, 2018, the Company prepaid our Term Loan Facility in full from the proceeds of a new term loan credit facility with a new lender.  For additional information, see Note 20.