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Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events

17. Subsequent Events

 

Cue Biopharma 401(k) Plan

 

Effective January 1, 2022, under the Cue Biopharma 401(k) Plan (the “Plan”), the Company adopted an employer contribution match of up to 3% of employee contributions. The Company will record this as an operating expense on the statement of consolidated operations in 2022 as incurred.

 

Lease Amendment

On January 25, 2022, the Company entered into the fourth amendment to the Additional Laboratory Lease. Pursuant to the amendment (1) the term of the lease was extended to March 14, 2024 and (2) the monthly rental rate for the amendment increased from $62,588 to $64,466 on October 15, 2022, and $66,399 on October 15, 2023.

 

Loan and Security Agreement

On February 15, 2022 (the “Closing Date”), the Company entered into a Loan and Security Agreement (the “Term Loan Agreement”), with Silicon Valley Bank, as lender (“Lender”). The Term Loan Agreement provides for up to $20,000,000 in term loans to be drawn in two tranches as follows: (i) Tranche A loan of $10,000,000 and(ii) Tranche B loan of up to $10,000,000 which is available to be drawn upon meeting certain specified requirements (collectively, the “Term Loans”). The Company drew $10,000,000 in term loans on the Closing Date.

The interest rate applicable to the Term Loans is the greater of (a) the WSJ Prime Rate plus 2.25% or (b) 5.50% per annum. The Term Loans are interest only from the Closing Date through June 30, 2023, after which the Company is required to pay 30 equal monthly installments of principal. Upon borrowing funding Tranche 2, the interest only period shall extend to December 31, 2023, followed by 24 months of amortization.

The Term Loans may be prepaid in full through February 15, 2023 with a payment of 3.00% prepayment premium, after which they may be prepaid in full through February 15, 2024 with payment of a 2.00% prepayment premium, after which they may be prepaid in full through February, 2025 with payment of a 1.00% prepayment premium, after which they may be prepaid in full with no prepayment premium. An additional final payment of 7.5% of the amount of Terms Loans advanced by the Lenders (“Exit Fee’) will be due upon prepayment or repayment of the Term Loans in full.

The Term Loans and related obligations under the Term Loan Agreement are secured by substantially all of the Company’s properties, rights and assets, except for its intellectual property (which is subject to a negative pledge under the Term Loan Agreement).

The Term Loan Agreement contains customary representations, warranties, events of default and covenants, including a requirement that the Company maintain in accounts of the Company at the Lender unrestricted and unencumbered cash equal to the lesser of all of the Company’s cash and 110% of the obligations to the Lender.