Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1627

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 11
Chunk 1627
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 reconciles the elements of the Business Combination to the consolidated statements of stockholders’ deficit and
cash flows for the fiscal year ended December 31, 2023:

 Schedule of Elements of Business Combination

    (in thousands) 

    Cash from AHAC trust, net of redemptions 
    $52,070 
  
    Offering costs from Business Combination 
     (2,049)
  
    Net impact on total stockholders’ deficit 
     50,021 

    Non-cash offering costs 
     2,049 
  
    Net impact on cash provided by financing activities 
    $52,070 

    F-15

Earnout
Shares

In
addition, pursuant to the Business Combination Agreement, Legacy Ocean’s stockholders prior to the Closing (the “Legacy
Ocean Stockholders”) are entitled to receive from the Company, in the aggregate, up to an additional 19,000,000
shares of the Company’s common stock (the “Earnout Shares”) as follows: (a)
in the event that the volume-weighted average price (the “VWAP”) of the Company’s common stock exceeds $15.00 per
share for twenty (20) out of any thirty (30) consecutive trading days beginning on the Closing date until the 36-month anniversary
of the Closing, the Legacy Ocean Stockholders shall be entitled to receive an additional 5,000,000 shares of the Company’s
common stock, (b) in the event that the VWAP of the Company’s common stock exceeds $17.50 per share for twenty (20) out of any
thirty (30) consecutive trading days beginning on the Closing date until the 36-month anniversary of the Closing, the Legacy Ocean
Stockholders shall be entitled to receive an additional 7,000,000 shares of the Company’s common stock and (c) in the event
that the VWAP of the Company’s common stock exceeds $20.00 per share for twenty (20) out of any thirty (30) consecutive
trading days beginning on the Closing date until the 36-month anniversary of the Closing, the Legacy Ocean Stockholders shall be
entitled to receive an additional 7,000,000 shares of the Company’s common stock. In addition, for each issuance of Earnout
Shares, the Company will also issue to Sponsor an additional 1,000,000 shares of the Company’s common stock.

The
Company has concluded that the