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| Debt | 6. Debt On March 27, 2023, the Company entered into a note purchase agreement, or the “Note Purchase Agreement,” with RTW Investments LP and certain of its affiliates, or collectively, “RTW.” On March 29, 2023, the Company closed the transactions contemplated by the Note Purchase Agreement, and issued and sold $50.0 million principal amount of 6.0% Convertible Senior Notes due 2029, or the “2029 Convertible Notes,” to the holders. On June 29, 2026, the Company amended the Note Purchase agreement to extend the Company’s option to pay cash interest or payment-in-kind interest, at its election from March 31, 2026 to March 31, 2027. The Company considered the amendment to be a modification of its debt with a nominal impact. In accounting for the issuance of the 2029 Convertible Notes, the Company determined there were no embedded features, which require bifurcation between debt and equity components. As a result, the 2029 Convertible Notes are accounted for as a liability. As of June 30, 2026, the estimated fair value of the 2029 Convertible Notes was approximately $62.1 million based on level 2 inputs, including volatility and credit spread. For more details on the agreement with RTW, see Note 11, “Debt,” to the Company’s audited consolidated financial statements, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The net carrying amount of the 2029 Convertible Notes are as follows:
The following table presents the total amount of interest cost recognized relating to the 2029 Convertible Notes:
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