Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Paycheck Protection Program Loan

On April 27, 2020, TransEnterix Surgical, Inc., a wholly owned subsidiary of TransEnterix, Inc. (“TransEnterix Surgical”) received funding under a promissory note dated April 18, 2020 (the “Promissory Note”) evidencing an unsecured non-recourse loan in the principal amount of $2,815,200 under the Paycheck Protection Program (the “PPP Loan”). The PPP was established as part of the CARES Act, signed into law on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”). The PPP Loan to TransEnterix Surgical is being made through City National Bank of Florida, a national banking association (the “Lender”).

The PPP Loan has a two-year term and matures on April 27, 2022. The interest rate on the PPP Loan is 1.00% per annum. Payments shall be deferred for the first six months of the term of the PPP Loan. The SBA has the right to extend the deferment period. The Promissory Note contains customary events of default relating to, among other things, payment defaults, and breach of representations and warranties, or other provisions of the Promissory Note.

The PPP Loan may be forgiven partially or fully if the PPP Loan proceeds are used for covered payroll costs, rent and utility costs incurred during the eight-week period that commenced on the date of funding, and at least 75% of PPP Loan proceeds are used for

covered payroll costs. All or a portion of the PPP Loan may be forgiven by the SBA upon application by the Company beginning 60 days but not later than 120 days after loan approval and upon documentation of expenditures in accordance with the SBA requirements.

Any forgiveness of the PPP Loan will be subject to approval by the SBA and the Lender. TransEnterix Surgical will be required to apply for such forgiveness. The Company recognizes that its restructuring activities unrelated to COVID-19 has led to a decrease in the number of employees between the historical measurement period and the period in which the PPP Loan proceeds are used for payroll and other costs and therefore, not all of the PPP Loan may be forgiven.

Although the Company intends to use the proceeds of the PPP Loan for such covered purposes, it can provide no assurance that it will obtain forgiveness of the PPP Loan in whole or in part.

2020 Employee Equity Awards

On April 30, 2020, the Compensation Committee of the Board approved 2020 annual equity awards and additional equity awards (the "Additional Awards") to employees, other than the named executive officers. The Additional Awards were intended to provide additional incentives to these employees due to existing underwater stock option awards. The awards, which aggregated to approximately 3 million shares, were made under the Company’s Amended and Restated Incentive Compensation Plan.  The awards are subject to forfeiture on a pro rata basis to the extent the requested increase in the number of shares available under the Plan are not approved by stockholders at the 2020 annual meeting on June 8, 2020.

Series A Preferred Stock

Subsequent to March 31, 2020, all outstanding shares of Series A Preferred Stock have been converted by the holders.