Long-term Debt |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | Long-term Debt In March 2024 we entered into an Amended and Restated Loan and Security Agreement (the "Amended Loan Agreement") with Oxford Finance LLC (the “Lender” or “Oxford”) and drew an additional Term Loan (as defined below) of $20.0 million. While the Amended Loan Agreement upsized our existing Term Loan facility to a total size of $150.0 million aggregate principal amount (the "Term Loans"), the availability of additional Term Loans is contingent upon the continued development of bexotegrast in IPF, and therefore, we do not expect to have access to additional borrowing under the Amended Loan Agreement. See Note 7 of the "Notes to the Financial Statements" in the Company's audited financial statements included in the 2024 10-K for more information. The principal amount outstanding under the Term Loans will accrue interest at a floating per annum rate equal to (i) the greater of (a) 1-month term Chicago Mercantile Exchange (“CME”) Term Secured Overnight Financing Rate (“SOFR”) on the last business day of the month that immediately precedes the month in which the interest will accrue and (b) three and one-half percent (3.50%) plus (ii) five and one-quarter percent (5.25%), subject to an agreed upon floor of 8.75%. Beginning on July 1, 2028, the Company is required to repay the Term Loans in consecutive equal monthly payments of principal, together with applicable interest, in arrears. Interest on the Term Loans is paid on a monthly basis. All unpaid principal and accrued and unpaid interest with respect to each Term Loan will be due and payable in full on March 1, 2029. Accrued interest as of June 30, 2025 and December 31, 2024 is included in other accrued liabilities. The Company will be required to make a final payment of 5.50% of the original principal amount of the Term Loans that were drawn, payable at maturity or upon any earlier acceleration or prepayment of the Term Loans. The Company may prepay the Term Loans in whole or in part, subject to a prepayment fee equal to (i) if prepaid on or before the first anniversary date of the funding date of such Term Loan, 3.00% of the principal amount of the applicable Term Loan prepaid, (ii) if prepaid after the first anniversary and on or before the second anniversary of the funding date of such Term Loan, 2.00% of the principal amount of the applicable Term Loan prepaid, and (iii) if prepaid after the second anniversary and on or before the third anniversary of the funding date of such Term Loan prepaid, 1.00% of the principal amount of the applicable Term Loan prepaid. The Amended Loan Agreement contains representations and warranties, affirmative, and negative covenants, and events of default that are customary for loans of this type. The occurrence of an event of default could result in the acceleration of the obligations under the Amended Loan Agreement, termination of the Term Loan commitments and the right by the Lender to foreclose on the collateral securing the obligations. During the existence of an event of default, the Term Loans would accrue interest at a rate per annum equal to 5.00% above the otherwise applicable interest rate. The estimated fair value of the Term Loans as of June 30, 2025 was measured using Level 3 inputs and approximates the carrying value recorded to the balance sheet. The effective interest rate for the Term Loan is 10.61% for the three and six months ended June 30, 2025 and 11.60% and 11.79% for the three and six months ended June 30, 2024, respectively. Interest expense during the three and six months ended June 30, 2025 was $0.8 million and $1.6 million, respectively and during the three and six months ended June 30, 2024 was $0.9 million and $1.3 million, respectively. Future maturities of debt as of June 30, 2025 are as follows (in thousands):
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