Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 720

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 720
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, 2023 the Company had not repaid the Underwriter Promissory Note and the
outstanding balance of $3.2 million is recorded as a short-term loan in the consolidated financial statements. The Company recorded $0.4
million and $0.3 million of interest expense on the outstanding balance in the Company’s consolidated financial statements for
the fiscal years ended December 31, 2024 and 2023, respectively.

On
March 4, 2024, the Company converted the convertible portion of the Underwriter Promissory Note into 169,582 restricted shares of its
common stock at the conversion price of $10.56. The principal amount converted was $1.6 million, plus $0.2 million of accrued interest
thereon. As of December 31, 2024, the Company had not repaid any of remaining principal balance of $1.6 million, which is recorded as
a short-term loan in the consolidated financial statements.

On
November 13, 2024, the Company received a notice of default with regard to its 2023 promissory note with EF Hutton, which alleges that
$2.1 million is due under the promissory note, consisting of the unpaid principal balance of $1.6 million, plus accrued and unpaid interest
of $0.5 million.

Common
Stock Purchase Agreement

On
September 7, 2022, AHAC entered into the Common Stock Purchase Agreement (the “Common Stock Purchase Agreement”) and the
White Lion Registration Rights Agreement (“White Lion RRA”) with White Lion. Pursuant to the Common Stock Purchase Agreement,
we have the right, but not the obligation to require White Lion to purchase, from time to time, up to $75.0 million in aggregate gross
purchase price of Equity Line Shares, subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement.

144

We
are obligated under the Common Stock Purchase Agreement and the White Lion RRA to file a registration statement with the SEC to register
under the Securities Act the common stock subject to the Common Stock Purchase Agreement, for the resale by White Lion of shares of the
Company’s common stock that the Company may issue to White Lion under the Common Stock Purchase Agreement.

Subject
to the satisfaction of certain customary conditions, our right to sell the Equity Line Shares to White Lion will commence on the effective
date of the registration statement and extend for a period of two years. During such