Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

Notes Payable
9 Months Ended
Sep. 30, 2020
Notes Payable  
Notes Payable

Note 8 - Notes Payable

On March 29, 2019 (the “Closing Date”), the Company entered into a $20.0 million Loan Agreement with Horizon, the proceeds of which will provide the Company with additional working capital to continue development of its gene and cell therapies. In accordance with the Loan Agreement, $15.0 million of the $20.0 million loan was funded on the Closing Date, with the remaining $5.0 million fundable upon the Company achieving certain predetermined milestones.

Each advance under the Horizon Loan Agreement will mature 42 months from the first day of the month following the funding of the advance. The first three advances will mature on October 1, 2022 (the “Loan Maturity Date”). Each advance accrues interest at a per annum rate of interest equal to 9.00% plus the amount by which the one-month LIBOR Rate, as reported in the Wall Street Journal, exceeds 2.50%. The Loan Agreement provides for interest-only payments commencing May 1, 2019, through and including October 1, 2020. The interest-only period may be extended to April 1, 2021, if the Company satisfies the Interest Only Extension Milestone (as defined in the Loan Agreement). Thereafter, commencing May 1, 2021, amortization payments will be payable monthly in eighteen installments of principal and interest.

On September 30, 2020, the Company repaid the note payable in full, all amounts that were outstanding under the loan agreement, which was comprised of $15.0 million face value of the outstanding notes, $112,500 accrued and unpaid interest, a $750,000 final payment fee and prepayment penalties of $550,000.

September 30, 


December 31, 



($ in thousands)






Interest Rate



Horizon Notes (1)(2)








October - 2022

Discount on notes payable


Total notes payable






Less: current portion


Long-term notes payable






(1) Balance includes $0.75 million final payment fee
(2) Interest rate is 9.00% plus one-month LIBOR Rate in excess of 2.5%

Amortization of the debt discount associated with the funded loans was approximately $1.8 million and $0.3 million for the three months ended September 30, 2020 and 2019, respectively, and amortization of the debt discount for the nine months ended September 30, 2020 and 2019, was $2.3 million and $0.5 million, respectively, and was included in interest expense in the Condensed Statements of Operations.