Subsequent Event

6 Months Ended

Dec. 31, 2018

Subsequent Event

18.

Subsequent Event

On February 13, 2019, the Company refinanced its existing SWK Loan (see Note 10) with the

CRG

Loan Agreement. Pursuant to the

CRG

Loan Agreement, the Company (i) made an initial draw of $35 million; (ii) has the right to draw up to an additional $15 million on or before June 30, 2019; and (iii) subject to achievement of prescribed three-month trailing product revenues of YUTIQ and DEXYCU on or before March 31, 2020, may draw up to an additional $10 million. The

CRG Loan Agreement

bears

interest at a fixed rate of 12.5% per annum payable in arrears on the last business day of each calendar quarter, with principal due at maturity on December 31, 2023. So long as no default has occurred and is continuing, the Company may elect on each applicable interest payment date to pay 2.5% of the 12.5% per annum interest as Paid In-Kind (“PIK”), whereby such PIK amount would be added to the aggregate principal amount and accrue interest at 12.5% per annum. Certain prepayment premiums apply to any loan repayments made through December 31, 2021. The Company will also be required to pay an exit fee of

% of the aggregate principal amount advanced under the CRG Loan Agreement.

In connection with the first draw under the Loan Agreement, a 1.5% financing fee of $525,000 and an expense reimbursement of $350,000 were deducted from the net borrowing proceeds.

As a result of the early repayment of the SWK Loan, the Company expects to record a loss on extinguishment of debt of approximately $3.8 million for the quarter ending March 31, 2019. This amount will consist of (i) the $1.2 million prepayment penalty; (ii) the make whole interest payment of $306,000 and (iii) the write-off of the remaining balance of unamortized debt discount of approximately $2.3 million.