Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Note 5. Debt Hercules Capital Loan Agreement In January 2024, the Company entered into a Loan and Security Agreement (the "Hercules Loan Agreement") with Hercules Capital, Inc. ("Hercules") and certain of its affiliates (collectively with Hercules, the "Lenders"), which provides for a senior secured term loan facility in the aggregate principal amount of up to $65.0 million. On January 22, 2024, an initial $35.0 million term loan (the "Initial Loan") was funded under the Hercules Loan Agreement, the proceeds of which were used to discharge the Company’s indebtedness under its previous credit facility with MidCap Financial Trust and certain of its affiliates. On December 10, 2024, the Company consummated the drawdown of the $5.0 million Tranche I(b) term loan advance (the "Tranche I(b) Loan") contemplated by the Hercules Loan Agreement. As of September 30, 2026, the aggregate principal amount of borrowings under the Hercules Loan Agreement was $40.0 million. In addition to the Initial Loan and the Tranche I(b) Loan, the Hercules Loan Agreement provides for additional tranches (the "Tranche Loans" and, together with the Initial Loan and the Tranche I(b) Loan, the "Term Loans"). Tranche 2 originally consisted of $10.0 million available to draw through September 15, 2025, contingent upon the achievement of certain performance milestones prior to June 30, 2025, which milestones were not met. Tranche 3 originally consisted of $15.0 million available to draw through the interest-only period in increments of $5.0 million, subject to the sole approval of Hercules’ investment committee. The Hercules Loan Agreement originally provided for a maturity date of July 1, 2028, with an interest-only period running for the first 30 months of the term, which was extendable for an additional six months upon the achievement of certain performance milestones prior to June 30, 2025, which milestones were not met. In September 2025, the Company and Hercules entered into a third amendment (the "Third Amendment") to the Hercules Loan Agreement, pursuant to which the expiration of the interest-only period was extended by an additional six months, from August 1, 2026 to February 1, 2027. The Third Amendment also reallocated the undrawn $10.0 million tranche by increasing the amount available to draw through the interest-only period from $15.0 million to $25.0 million, thereby maintaining the maximum $65.0 million credit facility. The additional $25.0 million may be drawn in minimum increments of $5.0 million, subject in each case to the sole approval of Hercules’ investment committee. In October 2026, the Company and Hercules entered into a fourth amendment to the Hercules Loan Agreement, pursuant to which the expiration of the interest-only period was extended by an additional six months, from February 1, 2027, to August 1, 2027. Due to the Company’s intent and ability to extend the interest only period via amendment of the Hercules Loan Agreement, as of September 30, 2026, the Company recorded the debt that is due for repayment in greater than twelve months under the fourth amendment as Long-term debt, net on the condensed consolidated balance sheet as of September 30, 2026. The Term Loans accrue interest at a floating annual rate equal to the greater of 10.35% or the Wall Street Journal prime rate (the "Prime Rate") plus 2.35%, with the interest rate equal to 10.35% at September 30, 2026. The final payment fee is set at 5.95% of the funded balance, which is recognized as a debt discount and is being accreted into the amortization of debt issuance costs using the effective interest rate method over the term of the loan. In conjunction with the funding of the Initial Loan, the Company issued warrants to the Lenders to purchase up to an aggregate of 135,688 shares of its common stock at an exercise price of $5.159 per share, which were recorded and classified as equity. Upon the funding of the Tranche I(b) Loan, the Company issued additional warrants to the Lenders to purchase 26,095 shares of its common stock at an exercise price of $3.83 per share. Each warrant is exercisable for a period of seven years from the date of issuance. If any Tranche Loans are funded, the Company will be obligated to issue to the Lenders additional warrants to purchase common stock in an amount equal to 2.0% of the funded balance of each Tranche Loan, divided by the exercise price on the date the Company draws funds under such Tranche Loan. The exercise price will be calculated using the five-day volume-weighted average stock price as of such date. See Note 7, Stockholders' Equity, for additional information regarding these common stock warrants. The obligations under the Hercules Loan Agreement are guaranteed by the Company and its future subsidiaries, subject to exceptions for certain foreign subsidiaries. The obligations under the agreement are secured by substantially all of the Company's assets, including its material intellectual property. Additionally, the Company is subject to customary affirmative and negative covenants, including covenants that limit or restrict the ability of the Company to, among other things, incur indebtedness, grant liens, merge or consolidate, make investments, dispose of assets, make acquisitions, pay dividends or make distributions, repurchase stock and enter into certain transactions with affiliates, in each case subject to certain exceptions. The Company is also subject to certain minimum cash and revenue covenants under the Hercules Loan Agreement. The Company was in compliance with all covenants as of September 30, 2026. While any Term Loans remain outstanding under the Hercules Loan Agreement, the Company is required to use commercially reasonable efforts to grant to the Lenders the option to invest up to $3.0 million in the Company’s next round of equity financing, if any, that is broadly marketed to multiple investors, on the same terms, conditions and pricing offered to investors in such equity financing. Maturities Schedule Term Loans balances as of September 30, 2026 and December 31, 2025, respectively, were as follows (in thousands):
The repayment schedule relating to the Term Loans as of September 30, 2026, is as follows (in thousands):
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