Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3187

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9
Chunk 3187
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“Maturity Date”). Interest accrues on the unpaid principal amount of the Poseidon Demand Note at a rate of 5% per annum and
is payable on the Maturity Date. During the fiscal years ended December 31, 2024 and 2023, the Company recognized interest expense of
$33 thousand and $8 thousand, respectively, related to the Poseidon Demand Note, which is reflected in other income (expense) in the
consolidated statement of operations.

Underwriter
Promissory Note

For
a discussion of an outstanding note due to the underwriters in AHAC’s IPO, see Note 3, Business Combination and Backstop Agreement.

7.
Senior Secured Convertible Notes

Senior
Secured Convertible Notes

In
May 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Investor”)
for the sale of up to three Senior Secured Convertible Notes (each, a “Note” and collectively, the “Notes”),
which Notes are convertible into shares of the Company’s common stock, in an aggregate principal amount of up to $27.0 million,
in a private placement (the “Ayrton Convertible Note Financing”). In May 2023, the Company consummated the closing for the
sale of (i) the initial note in the principal amount of $7.6 million (the “2023 Convertible Note”) and (ii) a warrant to
initially acquire up to 552,141 additional shares of the Company’s common stock with an initial exercise price of $11.50 per share
of common stock, subject to adjustment, exercisable immediately and expiring five years from the date of issuance (the “SPA Warrant”).
Each Note will be sold at an original issue discount of 8%. Future issuances of Notes (“Additional Closings”) are subject
to satisfaction of certain conditions. At the closing of the first Additional Closing, $8.6 million in principal amount of Notes will
be issued (the “First Additional Closing Date”) and $10.8 million in principal amount of Notes will be issued at the closing
of the second Additional Closing. So long as any Notes remain outstanding, the Company and each of its subsidiaries are prohibited from
effecting or entering into an agreement to effect any subsequent placement involving a Variable Rate Transaction, as defined within the
SPA, other than pursuant to the White Lion Common Stock Purchase Agreement.