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Borrowings
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Borrowings Borrowings
2017 Term Loan
In September 2017, the Company executed a term loan agreement (the 2017 Term Loan) with Innovatus Life Sciences Lending Fund I, LP (Innovatus), as amended (the Amended Loan Agreement), pursuant to which the Company borrowed $25.0 million. As of March 31, 2025, no additional amounts remained available to borrow under the Amended Loan Agreement.
On April 28, 2023, the Company entered into the Amended Loan Agreement. The Amended Loan Agreement was treated as a modification. In connection with the Amended Loan Agreement, the Company repaid $10.0 million of the principal balance outstanding, for which the prepayment premium was waived. Pursuant to the Amended Loan Agreement, the interest rate on all borrowings under the Amended Loan Agreement was the sum (the Basic Rate) of (a) the greater of 8.0% or The Wall Street Journal prime rate (the Prime Rate), plus (b) 2.0%, which is paid-in-kind in the form of additional term loans (PIK Loans). Under the Amended Loan Agreement, an amount equal to 1.5% of the Basic Rate was payable in-kind and capitalized to the principal amount of the outstanding term loan on a monthly basis until April 1, 2026, after which interest was scheduled to accrue at the Basic Rate. The maturity date of the loan was extended to December 31, 2026. The Company estimated the effective interest rate of this loan to be approximately 10.6% as of March 31, 2025 and December 31, 2024. Accrued interest was due and payable monthly, unless the Company elected to pay paid-in-kind interest. The outstanding principal and accrued interest under the Amended Loan Agreement was to be repaid in nine equal monthly installments commencing in April 2026, with a final installment on the maturity date. Upon repayment of the final installment under the Amended Loan Agreement, the Company was required to pay an additional fee of $1.0 million. This obligation is being accreted into interest expense over the term of the loan using the effective interest method. For each of the three months ended March 31, 2025 and 2024, the Company issued PIK Loans totaling $0.1 million, all of which is included in borrowings, non-current, net of discounts and debt issuance costs on the accompanying condensed balance sheets.
As of March 31, 2025, the Amended Loan Agreement was collateralized by a first priority security interest in substantially all of the Company's assets, including intellectual property. The Amended Loan Agreement contains customary affirmative and negative covenants.
The affirmative covenants required that the Company achieve a specified level of revenue, as measured quarterly on a rolling twelve-month basis, however the Company was not required to comply with the revenue covenant for any quarter during which it maintains a minimum aggregate cash balance equal to 50% of the aggregate principal amount of the Amended Loan Agreement (excluding any capitalized interest paid-in-kind) at all times during such quarter. The consequences of failing to achieve the performance covenants, when applicable, would be cured if, (i) within 30 days of failing to achieve the performance covenant, the Company submitted a new financial plan approved by the Company's board of directors (the Board) to Innovatus under which the Company was expected to break even on a cash flow basis prior to the maturity date, and (ii) within 30 days of the submission of such financial plan, the Company issued additional equity securities or subordinated debt with net proceeds sufficient to fund any cash flow deficiency generated from operations, as defined in the Amended Loan Agreement. The Amended Loan Agreement required that the Company maintained certain levels of minimum liquidity and maintained an unrestricted cash balance of $2.0 million.
As of March 31, 2025, the Company was in compliance with all covenants of the Amended Loan Agreement.
Upon an event of default in any of the Amended Loan Agreement covenants, the repayment of the 2017 Term Loan could be accelerated, and the applicable interest rate will be increased by 4.0% until the default is cured. Although repayment of the 2017 Term Loan could be accelerated under certain circumstances, the Company believed acceleration of this loan was not probable as of the date of these unaudited condensed financial statements. Accordingly, the Company has reflected the amounts of the Amended Loan Agreement due beyond twelve months of the balance sheet date as non-current.
On April 25, 2025, the Company and Perceptive entered into the Credit Agreement, under which an initial term loan of $25.0 million was funded, $19.7 million of which the Company used to repay the 2017 Term Loan. See “Note 10 Subsequent Events—Perceptive Term Loan Facility” for more information.
Equipment Notes Payable
In May 2022, the Company purchased laboratory equipment in the normal course of business using notes payable. In January 2025, the Company entered into a financing arrangement to procure additional laboratory equipment. At March 31, 2025, the total liability balance related to the financed equipment was $1.7 million, with $0.7 million classified within borrowings, current and $1.0 million within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets. At December 31, 2024, the total liability balance related to the financed equipment was $1.1 million, with $0.4 million classified within borrowings, current and $0.7 million within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets. The financed equipment is subject to effective interest rates between 5.28% and 10.50%, and will mature between October 1, 2026 and April 1, 2028.
Future Minimum Payments on the Outstanding Borrowings
As of March 31, 2025, future minimum aggregate payments, including interest, for outstanding borrowings are as follows (in thousands):
 
2025 (remaining)$1,800 
202621,657 
2027472 
202888 
Total24,017 
Less:
Unamortized debt discount and issuance costs(60)
Interest(3,017)
Total borrowings, net of discounts and debt issuance costs20,940 
Less: Borrowings, current(2,535)
Borrowings, non-current, net of discounts and debt issuance costs
$18,405