Note 9 - Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | |||||||||||||||||||||||||||||||||||||
| Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Text Block] |
Note 9—Debt:
Athyrium Note Purchase Agreement:
The Company issued senior notes for an aggregate principal amount of $100.0 million pursuant to a note purchase agreement dated July 23, 2021 by the Company, and its subsidiary, and Athyrium, as Administrative Agent, and certain other investor parties (the “Note Purchase Agreement”), with an initial maturity date of July 23, 2026 (the “Athyrium Notes”). The Athyrium Notes were issued for face amount of $100.0 million net of an original issue discount of $1.5 million. The Athyrium Notes also required a 2.0% exit payment to be made on each payment of principal.
Following the effectiveness of the Third Amendment, the Athyrium Notes bore interest at an annual rate equal to the sum of (a) eight percent (8.00%) plus (b) the lesser of (i) the sum of (x) three-month term SOFR for an interest period of three months plus (y) 0.26161% (26.161 basis points) and (ii) three and one-half of one percent (3.50%) per annum. Interest was payable quarterly on the last business day of March, June, September, and December each year. In the second quarter of 2024, the Company began paying principal payments required to be made quarterly at 11.11% of the original face amount. Each principal payment also included a 2.0% exit payment. Each quarterly principal payment approximated $11.1 million, and each quarterly exit fee payment approximated $0.2 million. Immediately prior to repayment described below, the effective interest rate for the Athyrium Notes was 12.99%.
On May 4, 2026, the Company paid $11.5 million to Athyrium Opportunities IV Co-Invest 1 LP, consisting of principal, interest and exit fees due under the 2021 Note Purchase Agreement. This payment was made ahead of the maturity date of July 23, 2026, reduced the principal balance outstanding under the Athyrium Notes to zero and terminated all remaining obligations of the Company under the 2021 Note Purchase Agreement, other than customary continuing indemnification obligations.
Debt Issuance Costs and Discounts:
Debt issuance costs and discounts consist of the following (in thousands):
Debt issuance costs and discounts are financing costs related to the Company’s outstanding debt. Amortization of debt issuance costs is expensed using the effective interest method and is included in interest expense in the condensed consolidated statement of operations. The Company recorded nominal amounts of interest expense for the three months ended September 30, 2026, and $0.1 million of interest expense for the nine months ended September 30, 2026. For the three and nine months ended September 30, 2025, the Company recorded approximately $0.1 million and $0.5 million of interest expense, respectively. |
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