Term Loan

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

TERM LOAN

(6) TERM LOAN

Oxford Finance and Silicon Valley Bank Loan

In October 2022, the Company entered into a loan and security agreement, as amended, the Loan Agreement, with Oxford Finance LLC, Oxford Finance Credit Fund II LP, and Silicon Valley Bank, or SVB, collectively the Lenders, for a secured term loan facility of up to $100.0 million. Pursuant to the Loan Agreement, the Company drew an initial loan of $10.0 million. Under the original terms of the Loan Agreement, the Company had the right to draw an additional $40.0 million through the end of June 2024. The original terms of the Loan Agreement provided for an additional $50.0 million over three tranches, with $12.5 million available in each of two tranches based upon the achievement of milestones related to the development of evorpacept and one preclinical product candidate, and $25.0 million at the Lenders’ sole discretion. The Company decided not to draw down on any portion of the $40.0 million available under the Loan Agreement by the deadline of June 30, 2024. As a result of this decision, the $40.0 million was added to the $25.0 million available upon the achievement of pre-determined development milestones for a total of $65.0 million available, split equally between each of the two tranches. An additional $25.0 million is also available at the Lenders’ sole discretion.

The proceeds of the loans may be used by the Company for working capital and to fund its general business requirements.

Additional information regarding our indebtedness is included in our notes to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 7, 2024.

During the three months ended September 30, 2024 and 2023, interest expense incurred in connection with the Loan Agreement was $0.3 million and $0.3 million respectively. During the nine months ended September 30, 2024 and 2023, interest expense incurred in connection with the Loan Agreement was $0.9 million and $0.8 million respectively.

As of September 30, 2024, the Company was in compliance with all financial reporting covenants under the Loan Agreement.

As of September 30, 2024, the future maturities under the Loan Agreement are as follows (in thousands):

	September 30, 2024
2024	$	—
2025		435
2026		5,217
2027		4,948
2028		—
Total future maturities		10,600
Less: current portion of term loan		—
Total term loan, net of current portion		10,600
Less: unamortized debt issuance costs		(616	)
Less: unaccreted final payment costs		(149	)
Term loan, non-current, net	$	9,835