Note 5 - Senior Credit Facility

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

Note

5

— Senior Credit Facility

On

July 20, 2018,

the Company, together with its consolidated subsidiary, MDCP, LLC (collectively, the “Borrowers”), entered into a

$30,000

secured loan facility with MidCap Financial, a Delaware statutory trust, as administrative agent and lender (“MidCap”), pursuant to the terms and conditions of that certain Amended and Restated Credit and Security Agreement, dated as of

July 20, 2018 (

the “Amended and Restated Senior Credit Facility”), among the Borrowers, MidCap, and the lenders party thereto from time to time. The Amended and Restated Senior Credit Facility refinances and replaces the Senior Credit Facility dated as of

September 23, 2016

among the Borrowers, MidCap and the lenders party thereto from time to time (the “Prior Credit Facility”). The Amended and Restated Senior Credit Facility was fully funded at closing and bears a variable interest rate of LIBOR (which shall

not

be less than

0.5%

) plus

8%.

The Amended and Restated Senior Credit Facility includes an interest-only payment period through

July 2019

and scheduled monthly principal and interest payments for the subsequent

30

months. The Company used a portion of the proceeds of the Amended and Restated Senior Credit Facility to pay off outstanding amounts under the Prior Credit Facility and the remainder will be used for general corporate purposes.

As of

September 30, 2018,

the Company had borrowings of

$30,000

under the Amended and Restated Senior Credit Facility bearing an interest rate of

10.1%.

The carrying amount of the debt approximates its fair value based on prevailing interest rates as of the balance sheet date. The remaining scheduled principal repayments of the Amended and Restated Senior Credit Facility are as follows:

Principal Payments
2018	$	—
2019		5,000
2020		12,000
2021		12,000
2022		1,000
Total	$	30,000

The debt agreement contains

two

provisions that if deemed probable would create the recognition of an embedded feature; however, we do

not

believe either provision is probable.