Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt CRG Term Loan In September 2020, the Company entered into a Term Loan Agreement with CRG Partners IV L.P. and its affiliates, or the CRG Term Loan, and borrowed $50.0 million. The CRG Term Loan initially bore interest at a rate of 12.5% per year and was interest-only through maturity on September 30, 2025. In February 2023, the CRG Term Loan was amended which increased the annual interest rate to 13.5% effective March 1, 2023. In May 2024, the maturity date was extended to September 30, 2026. Interest was payable quarterly at the end of each calendar quarter. The CRG Term Loan was collateralized by substantially all of the Company’s assets and included customary covenants and default provisions. In June 2025, the Company repaid the CRG Term Loan in full using the proceeds from the MidCap Term Loan (as defined below). Total repayment amounted to $61.9 million, including principal of $56.0 million, interest of $1.4 million and a backend fee of $4.5 million, which was reduced from 10% to 8% upon repayment. The repayment was accounted for as a debt extinguishment and the Company recorded a loss on extinguishment of $0.5 million included in other income (expense), net in the condensed statements of operations and comprehensive loss. During the three months ended June 30, 2025, the Company recorded interest expense and interest expense related to debt discount and debt issuance costs of the CRG Term Loan of $1.6 million and less than $0.1 million, respectively. During the six months ended June 30, 2025, the Company recorded interest expense and interest expense related to debt discount and debt issuance costs of the CRG Term Loan of $3.7 million and $0.1 million, respectively. MidCap Term Loan In June 2025, the Company entered into a credit, security and guaranty agreement (see Note 1), or MidCap Credit Agreement, with MidCap Funding IV Trust, as agent, MidCap Financial Trust, as term loan servicer and the financial institutions and other entities from time to time party thereto, or the Lenders. The MidCap Credit Agreement provides for a first lien senior secured credit facility consisting of (i) a $60.0 million term loan facility, or MidCap Term Loan, which was funded at closing of the MidCap Credit Agreement, and (ii) a revolving credit facility in an aggregate principal amount not to exceed $15.0 million, or the Revolver, and together with the MidCap Term Loan, the Loans. The Loans mature on June 4, 2030 with principal due at maturity. The MidCap Term Loan bears interest at an annual rate of the 30-day forward-looking term Secured Overnight Financing Rate, or SOFR, plus 5.5%, subject to a 2.0% SOFR floor. Borrowings under the Revolver will accrue interest at an annual rate of the 30-day forward-looking term SOFR plus 3.75%, subject to a 2.0% SOFR floor. Following the initial borrowing of the Revolver, the Company will pay an unused line fee equal to 0.25% per annum of the average unused portion of the Revolver. Interest and unused line fee, if any, are payable monthly in arrears. The date by which the Revolver must be implemented was extended from June 4, 2026 to December 31, 2026. The extension had no impact on the Company’s financial statements. The Company may repay the Loans, in whole or in part, at any time, subject to a prepayment premium of 3.0%, 2.0%, and 1.0% in the first, second and third years, respectively, and 0% thereafter. In addition, the MidCap Term Loan is subject to a 2% exit fee upon repayment. In addition, the Company shall pay an annual administrative fee, payable in advance, equal to 0.25% of the aggregate outstanding principal of the MidCap Term Loan. The Loans are collateralized by substantially all of the Company’s assets and subject to customary covenants and default provisions (see Note 1 for its financial covenants). The Company incurred $1.5 million of debt issuance costs, recorded as a discount on the MidCap Term Loan and amortized over the life of the loan using the effective interest method. Interest expense on the MidCap Term Loan was $1.5 million and $0.5 million for the three months ended June 30, 2026 and 2025, respectively, including interest expense related to debt discount and debt issuance costs of the MidCap Term Loan of $0.1 million and less than $0.1 million, respectively. Interest expense on the MidCap Term Loan was $3.0 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively, including interest expense related to debt discount and debt issuance costs of the MidCap Term Loan of $0.3 million and less than $0.1 million, respectively. The Revolver has not been drawn upon as of June 30, 2026. The following table sets forth the Company’s future minimum payments for the MidCap Term Loan as of June 30, 2026. Estimated future interest payments are calculated using the effective interest rate of 10.7% at June 30, 2026.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||