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BORROWINGS
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
Term loans—
In November 2018, the Company entered into a business financing agreement (“2018 Term Loan”) of $1.5 million with a bank with a maturity date of November 2021, and payable on a monthly basis of approximately $50 thousand with the beginning six months being interest only payments. The interest rate on the 2018 Term Loan is prime plus 2%. The debt issuance costs related to the 2018 Term Loan was approximately $26 thousand during the year ended December 31, 2018. Debt issuance costs were recorded as a direct reduction against the debt and amortized over the life of the associated debt as a component of interest expense using the effective interest method. Borrowings under the term loan are collateralized by substantially all the assets of the Company.
Under the terms of the 2018 Term Loan, the Company is required to comply with certain financial and nonfinancial covenants. Any failure to comply with these covenants and any other obligations under the agreement could result in an event of default, which would allow the Lender to require accelerated repayments of amounts owed. As of September 30, 2021 and December 31, 2020, the Company was in compliance with the financial and non-financial covenants.
As of September 30, 2021 and December 31, 2020, the Company had $0.1 million and $0.6 million outstanding balance, net of debt issuance costs, under the 2018 Term Loan, of which nil was classified as long-term liabilities, respectively.
The contractual future repayments of the 2018 Term Loan as of September 30, 2021 were as follows (in thousands):
Amount
Remainder of 2021
$101 
Less: interest(1)
Less: unamortized debt issuance cost— 
Term loan, net of interest and debt issuance cost$100 
Revolving line of credit—The Company has a revolving line of credit, under the business financing agreement dated August 2015, with a Lender for $1.5 million that matured in August 2018 and renewed in November 2018 for another three years with a maturity date of November 2021 for $2.0 million (“2018 Revolver”). The interest rate for the 2018 Revolver is prime plus 1%, and the 2018 Revolvers were not used as of both September 30, 2021 and December 31, 2020.
Vendor financing arrangements—The Company has various vendor financing arrangements with extended payment terms on the purchase of software licenses and equipment. In order to determine the present value of the commitments, the Company used an imputed interest rate of 7.5%, which is reflective of its collateralized borrowing rate with similar terms to that of the software licenses and equipment transactions.
Vendor financing arrangements were as follows (in thousands):
Amount
Remainder of 2021
$193 
2022712 
2023259 
Total undiscounted cash flows$1,164 
Less: imputed interest(60)
Present value of vendor financing arrangements$1,104 
Vendor financing arrangements, current$759 
Vendor financing arrangements, noncurrent345 
$1,104 
Interest expense from term loan and vendor financing arrangements was less than $0.1 million for the three months ended September 30, 2021 and 2020, and $0.1 million for the nine months ended September 30, 2021 and 2020.