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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) a Term Loan in the aggregate principal amount of $30,000,000, bearing interest at 8.5%. (the Oxford Term Loan), and (2) Series KK warrants to purchase an aggregate of 391,032 shares of common stock at an exercise price of $1.918 per share, expiring in March 2021 (the Series KK warrants). The Oxford Loan Agreement provides for a one year interest-only period beginning in March 2014, extendable to three years on achievement of certain milestones and certain end-of-term fees. The principal and interest are to be repaid in 24 to 48 equal monthly installments, depending on achievement of certain milestones. The outstanding balance of the debt is due March 1, 2019. The Oxford Term Loan is collateralized by a security interest in substantially all of the Company’s assets except for intellectual property, as to which the security interest is in rights to income or proceeds from the sale or licensing thereof. The Oxford Loan Agreement also specifies certain covenants including the requirement that Navidea provide certain information, such as financial statements and budgets, on a periodic basis. Concurrent with entering the Oxford Loan Agreement, the Company used a portion of the proceeds from the Oxford Loan Agreement to pay the $25.0 million of principal outstanding on the GECC/MidCap Notes, as well as a $1.0 million end-of-term fee and a $500,000 early payment penalty in accordance with the terms of the GECC/MidCap Loan Agreement.
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