Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 178

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 2
Chunk 178
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 the maturity date was extended from May 23, 2022 to November 18, 2022. The Company recognized a loss
and recorded the liability of $0.3 million for the put option in its consolidated financial statements for the fiscal year ended
December 31, 2022. There was no impact in 2023 or 2024.

134

In
April 2022, Legacy Ocean entered into a second Loan Agreement (the “Second Street Loan 2”) with Second Street Capital, where Legacy Ocean borrowed $0.2 million, which was used to pay a $15,000 loan fee,
$15,000 fee for amending the Second Street Loan to extend the maturity date, and $20,000 next day loan fee. The Second Street Loan 2
accrues interest at the rate of 15% per annum, with principal and interest due at maturity. Legacy Ocean issued to Second Street
Capital a warrant to purchase 62,500 shares of Legacy Ocean’s common stock, with an exercise price of $11.00 per share,
exercisable until February 22, 2026. There is no put option associated with this loan. Legacy Ocean was required to repay the April
2022 Second Street Loan on the earlier of (i) 5 business days after Legacy Ocean’s next financing or (ii) November 18, 2022.
Legacy Ocean recognized a loss of $0.4 million for the warrants issued based on the estimated fair value of the awards on the date
of grant in Legacy Ocean’s consolidated financial statements for the fiscal year ended December 31, 2022.

On
September 30, 2022, the Second Street Loan and the Second Street Loan 2 were amended whereas the maturity date was extended from
November 18, 2022 to December 30, 2022. In consideration of the extension, Legacy Ocean issued to Second Street Capital a warrant to
purchase 75,000 shares of Legacy Ocean’s common stock with an exercise price of $10.20 per share exercisable until September
30, 2026. Legacy Ocean recognized a loss of $435,075 for the warrants issued based on the estimated fair value of the awards on the
date of the grant in Legacy Ocean’s consolidated financial statements for the period ended September 30, 2022. Legacy Ocean
recognized a total expense in the amount of $1.1 million of which $0.3 million was for the put option and