Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 177

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 177
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 of our common stock equal to the economic value of the Legacy
    Ocean warrants previously issued to Second Street Capital in exchange for the termination of the Legacy Ocean warrants. The new warrants
    are exercisable for a total of 511,712 shares of our common stock at an exercise price of $8.06 per share and 102,342 shares of our
    common stock at an exercise price of $7.47 per share.

    ●
    We issued to Polar 1,350,000
    newly issued shares of our common stock that are subject to the forward purchase provisions of the Backstop Agreement.

    ●
    On February 15, 2023, one
    day following the Closing, we paid the Prepayment of $51.6 million to the Backstop Parties utilizing funds from AHAC’s trust
    account, pursuant to the terms of the Backstop Agreement, as discussed below. The total Prepayment includes $37.3 million from the
    purchase of the Recycled Shares and $14.3 million from the purchase of the Share Consideration Shares. As the $14.3 million was a
    netted transaction between us and Polar, only $37.3 million was actually paid out of the funds received from the trust account.

    ●
    Each share of AHAC’s
    Class A common stock was automatically reclassified into one share of the Company’s common stock, including the remaining shares
    of AHAC Class A common stock that were not redeemed.

The
Business Combination is accounted for as a reverse capitalization in accordance with U.S. GAAP. Under the guidance in ASC 805, Business
Combinations, AHAC is treated as the “acquired” company for financial reporting purposes. See Note 3, Business Combination
and Backstop Agreement, of our condensed consolidated financial statements included elsewhere in this Report for additional detail
about the Business Combination and related transactions. The Liquidity and Capital Resources section below also includes further
discussion of these transactions.

As
a result of becoming a public company, we have begun, and will continue to need to hire additional staff and implement processes and
procedures to address public company regulatory requirements and customary practices. We incurred and expect to continue to incur additional
annual expenses for, among other things, directors’ and officers’ liability insurance, director fees and additional internal
and external accounting, legal and administrative resources and fees.

Components
of Our Results of Operations

Revenue

To
date, we have