Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2405

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2405
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’s consolidated statements of operations for
the year ended December 31, 2023.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed
price “Purchase Notice” under the Common Stock Purchase Agreement at $7.00 per share if the market price for the Common Stock
exceeds $9.00 per share. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock under
the Common Stock 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.

    F-18

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 consolidated statements of operations for the year
ended December 31, 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 consolidated statements
of operations for the year ended December 31, 2023 for the issuance of the Sponsor Extension Shares, based