On January 5, 2018, Lipocine Inc., and its subsidiary, Lipocine Operating Inc. and Silicon Valley Bank entered into a Loan and Security Agreement pursuant to which SVB has agreed to lend the company $10.0 million. The principal borrowed under the Loan and Security Agreement bears a fixed interest rate equal to the Prime Rate plus one percent per annum, which interest is payable monthly. The loan matures on December 1, 2021. The company is only required to make monthly interest payments until December 31, 2018, following which the company will be required to also make equal monthly payments of principal for the remainder of the term; provided, however, that if on or prior to May 31, 2018, the company receives evidence reasonably satisfactory to SVB that the company has received FDA approval for TLANDO, the interest-only payment period will be extended to June 30, 2019. The company will also be required to pay an additional final payment at maturity equal to $650,000. At its option, the company may prepay all amounts owed under the Loan and Security Agreement (including all accrued and unpaid interest and the Final Payment Charge), subject to a prepayment charge if the loan has been outstanding for less than two years, which prepayment charge is determined based on the date the loan is prepaid.