Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 130

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 130
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 Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.

Sponsor
Promissory Notes

Upon
consummation of the Business Combination, the Company assumed two of AHAC’s loans, totaling $2.1 million, one of which accrued
interest at 8% per annum and the other accrued interest at 15% per annum. Both loans were due within five days of Closing. $0.5 million
was paid down at Closing, with the remaining paid down in May 2023 via the proceeds received from the initial Note under the Ayrton Convertible
Note Financing. Refer to Note 7, Senior Secured Convertible Notes, for further detail on the Notes.

    16

In
connection with the assumption of AHAC’s loans and pursuant to the terms of the Business Combination Agreement described above,
the Company issued 1,365,000 shares of its common stock to the Sponsor as consideration for providing the loans to the Company (the “Sponsor
Extension Shares”). In addition, pursuant to the terms of an amendment entered into prior to the paydown of the loans, the Company
issued a total of 200,000 shares of its common stock in exchange for extensions of the maturity date.

The
Company recognized a loss on extinguishment of debt of $1.2 million in its condensed consolidated statements of operations for the nine
months ended September 30, 2023 for the 200,000 shares issued in exchange for extensions of the maturity date, based on the grant date
fair value of the shares issued. In addition, the Company recognized a loss on extinguishment of debt of $13.6 million in its condensed
consolidated statements of operations for the nine months ended September 30, 2023 for the issuance of the Sponsor Extension Shares,
based on the grant date fair value. Further, the Company recorded interest expense of $36 thousand in its condensed consolidated statements
of operations for the nine months ended September 30, 2023.

Deferred
Underwriting Commissions

At
Closing, the underwriters for AHAC’s initial public offering (“IPO”) agreed to defer payment of $3.2 million of deferred
underwriting discounts otherwise due to them until November 14, 2023, pursuant to the terms of a promissory note (the “Underwriter
Promissory Note”). The deferred amounts bear interest at 9% per annum and 24% per annum following an event of default