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Notes Payable
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3 Months Ended |
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Mar. 31, 2015
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| Debt Disclosure [Abstract] | |
| Notes Payable |
Notes Payable
In March 2014, we executed a Loan and Security Agreement (the Oxford Loan Agreement) with Oxford Finance, LLC (Oxford), providing for a loan to the Company of $30 million. Pursuant to the Oxford Loan Agreement, we issued Oxford: (1) Term Notes in the aggregate principal amount of $30 million, bearing interest at 8.5% (the Oxford Notes), and (2) Series KK warrants to purchase an aggregate of 391,032 shares of our common stock at an exercise price of $1.918 per share, expiring in March 2021 (the Series KK warrants). We began making monthly payments of interest only on April 1, 2014, and monthly payments of principal and interest beginning April 1, 2015. As of March 31, 2015, the outstanding principal balance of the Oxford Loan Notes was $30 million, and we were in compliance with all covenants of the Oxford Loan Agreement.
In connection with the Oxford Loan Agreement, the Company recorded a debt discount related to the issuance of the Series KK Warrants and other fees to the lenders totaling $3.0 million. Debt issuance costs directly attributable to the Oxford Loan Agreement, totaling $120,000, were recorded as a non-current asset on the consolidated balance sheet on the closing date. The debt discount and debt offering costs are being amortized as non-cash interest expense using the effective interest method over the term of the Oxford Loan Agreement. As of March 31, 2015, the balance of the debt discount was $2.2 million, and the balance of the debt issuance costs was $81,000.
Our loan agreement with Platinum, as amended, provides us with a credit facility of up to $50 million (the Second Amended Platinum Note). The Company borrowed an additional $3.0 million under the Second Amended Platinum Note during the three months ended March 31, 2015. The Second Amended Platinum Note is reflected on the consolidated balance sheets at its estimated fair value, which includes the estimated fair value of an embedded conversion option. A net decrease in the estimated fair value of the Second Amended Platinum Note of $1.7 million was recorded as a non-cash change in fair value of financial instruments during the three-month period ended March 31, 2015. The estimated fair value of the Second Amended Platinum Note was $6.9 million as of March 31, 2015. As of March 31, 2015, the outstanding principal balance of the Second Amended Platinum Note was approximately $6.2 million, with $28.8 million still available under the credit facility.
As of March 31, 2015, the outstanding principal balance of the Note Payable to R-NAV was $666,666.
During the three-month periods ended March 31, 2015 and 2014, we recorded interest expense of $967,000 and $944,000, respectively, related to our notes payable. Of these amounts, $213,000 and $242,000, respectively, related to amortization of the debt discounts and deferred financing costs related to our notes payable.
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