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Note 3 - Long-term Debt
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Long-Term Debt [Text Block]

Note 3 — Long-Term Debt

 

SWK Loan

 

In  November 2019, the Company entered into a credit agreement (the “SWK Credit Agreement”) with SWK Funding LLC (“SWK”), which provided for up to $10,000 in debt financing. As a result of subsequent amendments to the SWK Credit Agreement, the Company expanded its credit facility to $30,000, extended the facility’s maturity to three years from closing with a loan maturity date of  December 17, 2027, and reduced the facility’s annual interest rate to Secured Overnight Financing Rate (“SOFR”) plus 6.75%. 

 

Interest payments are payable quarterly, with quarterly principal payments of $3,000 beginning in  May 2026 with a final principal payment of $9,000 due at maturity in  December 2027. The SWK Credit Agreement includes a 5.0% exit fee payable at maturity and this exit fee payable will be accreted to interest expense in the Company's Statement of Operations using the effective interest expense method. The SWK Credit Agreement contains a mandatory prepayment clause that can compel the Company to partially prepay the loan upon certain triggering events, which the Company has deemed to be remote. Borrowing under the SWK Credit Agreement is secured by the Company's assets, contains customary default provisions, which include limits on additional indebtedness. As of March 31, 2026 and December 31, 2025, the Company was in compliance with all financial covenants. 

 

During the three months ended March 31, 2026 and 2025, the Company recorded interest expense of $1,136 and $1,163, respectively, which included $118 and $294, respectively, of debt discount amortization and non-cash interest expense. The Company had accrued interest of $431 and $425 as of March 31, 2026 and December 31, 2025, respectively, which is included in accrued liabilities in the accompanying Condensed Balance Sheets.

 

The table below reflects the future payments for the SWK loan principal as of March 31, 2026.

 

  

Amount

 

2026

 $9,000 

2027

  21,000 

Total payments

  30,000 

Less: unamortized discount

  (273)

Plus: accrued exit fees at March 31, 2026

  1,020 

Debt, net

 $30,747