On July 14, 2022 HTG Molecular Diagnostics, Inc. (the "Company") reported that entered into an amendment (the "Amendment") to its Loan and Security Agreement, dated June 24, 2020, by and between the Company and Silicon Valley Bank (the "Loan Agreement") (Filing, 8-K, HTG Molecular Diagnostics, JUL 14, 2022, View Source [SID1234616729]). Under the Loan Agreement, Silicon Valley Bank provided the Company with a $10.0 million principal amount secured term loan (the "Term Loan"), of which $7.5 million remained outstanding as of June 30, 2022.

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Pursuant to the Amendment, the Company and Silicon Valley Bank agreed to remove the financial covenant under the Loan Agreement that had required the Company to maintain unrestricted cash, including short term investments available-for-sale, of not less than the greater of (i) $12.5 million and (ii) an amount equal to six times the amount of the Company’s average monthly Cash Burn (as defined in the Loan Agreement) over the trailing three months. In exchange for this accommodation, the Company prepaid $2.5 million of outstanding principal under the Term Loan (the "Prepayment"). Silicon Valley Bank waived the prepayment fee that otherwise would have applied to the Prepayment. The remaining outstanding principal amount under the Term Loan will continue to be paid in equal monthly payments of principal and interest through the maturity date of December 1, 2023.