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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | DEBT A summary of the Company’s debt is as follows:
On July 15, 2024, the Company entered into an Amended and Restated Loan and Security Agreement (the “Loan Agreement”) with Customers Bank. Pursuant to the Loan Agreement, Customers Bank issued a term loan in the principal amount of $6.0 million (the “Loan”). Interest is payable on the Loan at a rate equal to the greater of (a) the prime rate published in The Wall Street Journal or (b) 6.0%, and the maturity date is July 15, 2029 (the “Maturity Date”). Concurrent with the Company’s entry in the Loan Agreement, the Company issued a warrant to Customers Bank to purchase 1,000,000 shares of the Company’s common stock (the “Bank Warrant”). The Bank Warrant has an exercise price of $1.25 per share, exercisable upon issuance and expiring on July 15, 2030. The Bank Warrant is classified as a liability under ASC 815, Derivatives and Hedging (“ASC 815”) and is remeasured at fair value each reporting period, with changes recognized in other income, net. At issuance, the Bank Warrant was recorded at its fair value of $0.2 million and reflected as a debt discount, which is being amortized to interest expense over the term of the Loan. The fair value of the Loan was $5.0 million and $5.8 million as of September 30, 2025 and December 31, 2024, respectively. Payments under the Loan were interest-only through January 15, 2025. Thereafter, the Company is required to pay equal monthly installments of principal plus accrued interest until the Maturity Date. There is no penalty for prepayment of the Loan. The Loan is secured by substantially all of the Company’s assets, excluding intellectual property, and the Loan Agreement contains customary affirmative and negative covenants, including a minimum liquidity ratio of 4.00. If an event of default occurs under the Loan Agreement, Customers Bank may declare all outstanding obligations immediately due and payable and exercise its other rights and remedies. As of September 30, 2025, the Company was in compliance with all covenants. The following table presents the future minimum principal payments on the total borrowings under all debt agreements as of September 30, 2025:
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