v3.25.2
CREDIT FACILITY AGREEMENTS
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
CREDIT FACILITY AGREEMENTS CREDIT FACILITY AGREEMENTS
In April 2024, the Company executed the 2024 Credit Facility with Pharmakon with maturity in April 2029. The 2024 Credit Facility is collateralized by substantially all of the Company's presently existing and subsequently acquired assets. Upon execution, the Company made a $75.0 million draw from the initial tranche of the 2024 Credit Facility, a portion of which was utilized to repay all outstanding indebtedness on the Credit Facility with Hercules and SVB (the "2022 Credit Facility"), resulting in total net proceeds of $39.6 million. The 2024 Credit Facility provided for three potential additional term loan tranches in principal amounts up to $25.0 million, $50.0 million, and $50.0 million, respectively, subject to customary conditions to funding and, in the case of the last two tranches, achieving minimum net product sales milestones which have been met. The Company did not draw on the first or second additional tranche of $25.0 million and $50.0 million, respectively, each of which expired on December 31, 2024 and June 30, 2025. The one remaining $50.0 million tranche may be requested at the Company's option on or prior to December 31, 2025.
Under the 2024 Credit Facility, the outstanding principal draws accrue interest at a floating rate based upon the secured overnight financing rate (“SOFR”), plus a margin of 6.75% per annum. The SOFR is subject to a 3.75% floor. At the extinguishment date of the 2022 Credit Facility, the outstanding principal was accruing interest at the aggregate cap of 11.45%.
The Company was required to pay a specified fee upon the earlier of (i) February 2, 2027 or (ii) the date the Company prepays, in full or in part, the outstanding principal balance of the 2022 Credit Facility ("End of Term Charge"). Upon the signing of the 2024 Credit Facility, the End of Term Charge of $1.4 million was paid in full in April 2024, which was derived by multiplying 4.75% by the $30.0 million outstanding principal balance. Prior to being paid, the End of Term Charge was accreted to interest expense over the expected maturity date. The Company recognized a loss on debt extinguishment of $1.9 million in the Statement of Operations and Comprehensive Loss for the year ended December 31, 2024.
As of June 30, 2025 and 2024, the effective interest rates for the full term of the Credit Facilities was 12.31% and 13.37%, respectively. The Company recognized interest expense in the accompanying Condensed Statements of Operations and Comprehensive Loss in connection with the Credit Facilities as follows:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Interest expense for long-term debt$2,094 $2,008 $4,168 $2,877 
Accretion of end of term charge— — — 80 
Amortization of debt issuance costs146 101 285 135 
Total interest expense$2,240 $2,109 $4,453 $3,092 
The carrying value of the 2024 Credit Facility consists of principal outstanding less legal and administrative issuance costs that were recorded as a debt discount to the long-term debt, net and will continue to be accreted to interest expense using the effective interest method during its term. The principal balance of the 2024 Credit Facility and related accretion and amortization are reported on a combined basis as long-term debt, net in the accompanying Condensed Balance Sheets as follows:
June 30, 2025December 31, 2024
Long-term debt, gross$75,000 $75,000 
Debt issuance costs(3,523)(3,523)
Accumulated amortization of debt issuance costs652 368 
Long-term debt, net $72,129 $71,845