In we entered into an agreement with Platinum to provide us with a credit facility of up to million. Following the approval of tilmanocept, Platinum was committed under the terms of the agreement to extend up to million in debt financing to the Company. The agreement also provided for Platinum to extend an additional million on terms to be negotiated. Through we drew a total of million under the original facility.

 

In in connection with entering into a Loan Agreement with General Electric Capital Corporation (“GECC”) and MidCap Financial SBIC, LP (“MidCap”) (the “GECC/MidCap Loan Agreement”), the Company and Platinum entered into an Amendment to the Platinum Loan Agreement (the “First Platinum Amendment”). Concurrent with the execution of the First Platinum Amendment, the Company delivered an Amended and Restated Promissory Note (the “First Amended Platinum Note”) to Platinum, which amended and restated the original promissory note issued to Platinum, in the principal amount of up to million. The First Amended Platinum Note also adjusted the interest rate to the greater of (a) the U.S. Prime Rate as reported in the Wall Street Journal plus (b) or (c) the highest rate of interest then payable pursuant to the GECC/MidCap Loan Agreement plus

 

In connection with the First Platinum Amendment, the Company and Platinum entered into a Warrant Exercise Agreement (“Exercise Agreement”), pursuant to which Platinum exercised its Series Warrant and Series AA Warrant. The warrants were exercised on a cashless basis by canceling a portion of the indebtedness outstanding under the Platinum Loan Agreement equal to million, the aggregate exercise price of the warrants. Pursuant to the Exercise Agreement, in lieu of common stock, Platinum received on exercise of the warrants shares of the Company’s Series B Convertible Preferred Stock (the “Series B Preferred Stock”), convertible into shares of our common stock in the aggregate ( shares of common stock per preferred share).

 

In in connection with entering into a Loan and Security Agreement (the “Oxford Loan Agreement”) with Oxford Finance, LLC, we entered into a amendment to the Platinum Loan Agreement (the “Second Platinum Amendment”). Concurrent with the execution of the Second Platinum Amendment, the Company delivered an Amended and Restated Promissory Note (the “Second Amended Platinum Note”) to Platinum, which amended and restated the First Amended Platinum Note. The Second Amended Platinum Note adjusted the interest rate to the greater of (i) the U.S. prime rate as reported in The Wall Street Journal plus (ii) and (iii) the highest rate of interest then payable by the Company pursuant to the Oxford Loan Agreement plus

 

In in connection with the execution of the CRG Loan Agreement (discussed below), the Company amended the existing Platinum credit facility to allow this facility to remain in place in a subordinated role to the CRG Loan (the “Third Platinum Amendment”). Among other things, the Third Platinum Amendment (i) extended the term of the Platinum Loan Agreement until a date months following the maturity date or earlier repayment of the CRG Term Loan; (ii) changed the interest rate to the greater of (a) the U.S. prime rate as reported in The Wall Street Journal plus (b) and (c) the highest rate of interest then payable pursuant to the CRG Term Loan plus (iii) required such interest to compound monthly; and (iv) changed the provisions of the Platinum Loan Agreement governing Platinum’s right to convert advances into common stock of the Company. The Third Platinum Amendment provided for the conversion of all principal and interest outstanding under the Platinum Loan Agreement, but until such time as the average daily volume weighted average price of the Company’s common stock for the preceding trading days exceeds per share. The Third Platinum Amendment became effective upon initial funding of the CRG Loan Agreement.

 

In accordance with the terms of a Section (b) Settlement Agreement, Platinum agreed to forgive interest owed on the credit facility in an amount equal to effective During the years ended and and respectively, of interest was compounded and added to the balance of the Platinum Note.

 

In connection with the closing of the Asset Sale to Cardinal Health in the Company repaid to PPCO an aggregate of approximately million in partial satisfaction of the Company’s liabilities, obligations and indebtedness under the Platinum Loan Agreement between the Company and Platinum-Montaur, which were transferred by Platinum-Montaur to PPCO. See Note

 

The Platinum Note is reflected on the consolidated balance sheets at its principal balance plus the estimated fair value of the embedded conversion option of at and During the years ended and changes in the estimated fair value of the Platinum conversion option were and a decrease of respectively, and were recorded as non-cash changes in the fair value of financial instruments. The balance of the Platinum Note, including the fair value of the embedded conversion option, was and million as of and respectively.

 

 

In Navidea and MT, as guarantor, executed a Term Loan Agreement (the “CRG Loan Agreement”) with CRG in its capacity as a lender and as control agent for other affiliated lenders party to the CRG Loan Agreement (collectively, the “Lenders”) in which the Lenders agreed to make a term loan to the Company in the aggregate principal amount of million (the “CRG Term Loan”), with an additional million in loans to be made available upon the satisfaction of certain conditions stated in the CRG Loan Agreement. Closing and funding of the CRG Term Loan occurred on the “Effective Date”). The principal balance of the CRG Term Loan bore interest from the Effective Date at a per annum rate of interest equal to Through the Company had the option of paying (i) of the per annum interest in cash and (ii) of the per annum interest as compounded interest which is added to the aggregate principal amount of the CRG Term Loan. During and a total of million of interest was compounded and added to the balance of the CRG Term Loan. In addition, the Company began paying the cash portion of the interest in arrears on Principal was due in equal quarterly installments during the final years of the term. All unpaid principal, and accrued and unpaid interest, was due and payable in full on Pursuant to a notice of default letter sent to Navidea by CRG in the Company stopped compounding interest in the quarter of and began recording accrued interest.

 

The CRG Term Loan was collateralized by a security interest in substantially all of the Company's assets. In addition, the CRG Loan Agreement required that the Company adhere to certain affirmative and negative covenants, including financial reporting requirements and a prohibition against the incurrence of indebtedness, or creation of additional liens, other than as specifically permitted by the terms of the CRG Loan Agreement. The Lenders could accelerate the payment terms of the CRG Loan Agreement upon the occurrence of certain events of default set forth therein, which include the failure of the Company to make timely payments of amounts due under the CRG Loan Agreement, the failure of the Company to adhere to the covenants set forth in the CRG Loan Agreement, and the insolvency of the Company. The covenants of the CRG Loan Agreement included a covenant that the Company shall have EBITDA of less than million in each calendar year during the term or revenues from sales of tilmanocept in each calendar year during the term of at least million in with the target minimum revenue increasing in each year thereafter until reaching million in However, if the Company were to fail to meet the applicable minimum EBITDA or revenue target in any calendar year, the CRG Loan Agreement provided the Company a cure right if it raised times the EBITDA or revenue shortfall in equity or subordinated debt and deposited such funds in a separate blocked account. Additionally, the Company was required to maintain liquidity, defined as the balance of unencumbered cash and permitted cash equivalent investments, of at least million during the term of the CRG Term Loan. The events of default under the CRG Loan Agreement also included a failure of Platinum to perform its funding obligations under the Platinum Loan Agreement at any time as to which the Company had negative EBITDA for the most recent fiscal quarter, as a result either of Platinum’s repudiation of its obligations under the Platinum Loan Agreement, or the occurrence of an insolvency event with respect to Platinum. An event of default would entitle CRG to accelerate the maturity of our indebtedness, increase the interest rate from to the default rate of per annum, and invoke other remedies available to it under the loan agreement and the related security agreement.

 

During the course of CRG alleged multiple claims of default on the CRG Loan Agreement, and filed suit in the District Court of Harris County, Texas (the “Texas Court”) on On CRG exercised control over of the Company’s primary bank accounts and took possession of million that was on deposit, applying million of the cash to various fees, including collection fees, a prepayment premium and an end-of-term fee. The remaining was applied to the principal balance of the debt. Multiple motions, actions and hearings followed over the remainder of and into

 

On the Company entered into a Global Settlement Agreement with MT, CRG, and Cardinal Health In accordance with the Global Settlement Agreement, on the Company repaid million of its indebtedness and other obligations outstanding under the CRG Term Loan.

 

Following a trial in the Texas Court ruled that the Company’s total obligation to CRG was in excess of million, limited to million under the Global Settlement Agreement. The Texas Court acknowledged only the million payment made in concluding that the Company owed CRG another million, however the Texas Court did expressly take the Company’s payment of million into account and awarded, as part of the million, amounts that had already been paid as part of the million. In CRG drew approximately million on a letter of credit that was established pursuant to the Global Settlement Agreement. This was in addition to the million and the million that Navidea had previously paid to CRG. The Company believes that the  million should be credited against the million and is currently pursuing recovery of million and other damages. See Note

 

 

In we prepaid of insurance premiums through the issuance of a note payable to IPFS Corporation (“IPFS”) with an interest rate of The note was payable in monthly installments of with the final payment made in In we prepaid of insurance premiums through the issuance of a note payable to IPFS with an interest rate of The note is payable in monthly installments of with the final payment due in

 

Interest expense related to the IPFS notes payable totaled and during the years ended and respectively. The balance of the IPFS note was approximately and as of and respectively, and was included in notes payable, current in the consolidated balance sheets.

 

 

During the years ended and we recorded interest expense of and respectively, related to our notes payable. Of those amounts, and was compounded and added to the balance of our notes payable during the years ended and

 

Interest expense in the amount of during the year ended has been reclassified to discontinued operations. See Note

 

Annual principal maturities of our notes payable are in