Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent EventsOn July 11, 2022, the Company entered into a third loan modification agreement to its third amended and restated loan and security agreement, as amended. In particular, the third loan modification agreement extended the maturity date of the Company’s revolving line of credit to September 11, 2022. The other material terms of the third amended and restated loan and security agreement remained unchanged.
On July 25, 2022, the Company entered into a joinder and fourth loan modification agreement that made certain modifications to its third amended and restated loan and security agreement, as amended. The joinder and fourth loan modification agreement, among other things, amended the third amended and restated loan and security agreement to (i) increase the amount of the revolving credit line to $30.0 million, (ii) extend the maturity date of the revolving credit line to December 31, 2024, and (iii) establish a secured equipment loan facility of up to $15.0 million available through December 31, 2023.
Interest on the outstanding balance of the revolving credit line is payable monthly at an annual rate of WSJ Prime plus 0.25% when the Company’s Adjusted Quick Ratio (“AQR”) is less than or equal to 1.50, and plus 0.75% when the Company’s AQR is greater than 1.50.
Under the secured equipment loan facility, Silicon Valley Bank, the Company’s primary lender, will advance up to $800,000 for every confirmed shipment of a metal additive 3D printer associated with an equipment lease contract with a minimum tenor of one year and at least $300,000 in annual revenue.
The third amended and restated loan and security agreement, as amended, contains customary representations and warranties, affirmative and negative covenants (including financial covenants), events of default, and termination provisions. The financial covenants include requirements to maintain minimum liquidity (the sum of the Company’s cash, cash equivalents and availability under the revolving credit facility) of $20.0 million and minimum levels of quarterly revenue for the 2022 fiscal year.
In conjunction with the joinder and fourth loan modification agreement, the Company issued to Silicon Valley Bank a warrant to purchase up to 70,000 shares of the Company’s common stock at an exercise price of $2.56 per warrant share. The warrant is exercisable for a term of ten years and allows cashless exercise in whole or part.
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