v3.26.1
Notes payable
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Notes payable

Note 8 - Notes payable

 

At March 31, 2026 and December 31, 2025, notes payable consisted of the following (in thousands):

          
   March 31,   December 31, 
   2026   2025 
Notes payable, current        
Current portion of notes payable  $ -   $ - 
Notes payable, noncurrent          
Long-term portion of notes payable   41,800    41,800 
Less: unamortized deferred loan costs   (258)   (311)
Less: unamortized discount   (502)   (603)
Notes payable, noncurrent, net  $41,040   $40,886 
Total notes payable, net  $41,040   $40,886 

 

The following table presents information regarding the Company’s notes payable principal repayment obligations as of March 31, 2026 (in thousands):

      
Years Ended December 31,     
2026   $ - 
2027    41,800 
Total minimum payments   $41,800 

 

Runway Growth Finance Corp

 

On June 30, 2022, the Company entered into a loan and security agreement with Runway Growth Finance Corp. The debt is secured against substantially all assets of the Company, except for the Company’s intellectual property but includes all proceeds from the sale of intellectual property. As of March 31, 2026 and December 31, 2025, the outstanding principal balance was $41.8 million and $41.8 million, respectively.

 

Interest on the term loan accrues on the principal amount outstanding at a floating per annum rate equal to the greater of the rate of interest noted in The Wall Street Journal Money Rates section, as the “Prime Rate” or 4.00% plus a margin of 4.9% and is payable monthly in arrears and shall be computed on the basis of a 360-day year for the actual number of days elapsed. The Company is required to make interest only payments from July 2022 to May 2027. The note payable has a maturity date of June 15, 2027, at which time any unpaid interest, outstanding principal balance, and a final payment of 4.5% of the original principal amount borrowed shall be due in full. If the Company repays the loan prior to maturity, the Company will be required to pay a prepayment fee of 0.5% of the outstanding principal balance. The Company is also required to pay a 3% success fee of the funded principal amount of the term loan at the time of a liquidity event, as defined in the loan and security agreement. The success fee is enforceable within 10 years from the execution date of the agreement.

 

The Company has accounted for the final payment of $1.8 million as a discount of the note that will be amortized over the life of the loan using the effective interest method. Amortization of the discount was $0.1 million and $0.1 million for the three-month period ended March 31, 2026 and 2025, respectively. This amount was recorded as additional interest expense in the accompanying unaudited condensed consolidated statements of operations. As of March 31, 2026 and December 31, 2025, the note has been shown net of unamortized discounts of $0.5 million and $0.6 million, respectively.

 

The Company incurred loan costs of $1.0 million, which are being amortized over the life of the loan using the effective interest method. Amortization of loan costs was $0.1 million and $0.1 million for the three-month period ended March 31, 2026 and 2025, respectively. As of March 31, 2026 and December 31, 2025, the note has been shown net of unamortized loan costs of $0.3 million and $0.3 million, respectively.

 

The Company is subject to customary financial and reporting covenants under the loan and security agreement. As of March 31, 2026 and December 31, 2025, the Company was in compliance with all debt covenants.