Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2687

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2687
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 are exercisable for 5,411,000 shares of common stock at $11.50 per share and our public warrants are exercisable
for 5,250,000 shares of common stock at $11.50 per share. The Second Street Warrants are exercisable for 511,712 shares of common stock
at an exercise price of $8.06 per share, 102,342 shares of common stock at an exercise price of $7.47 per share and 75,000 shares of
common stock at an exercise price of $10.34. The additional shares of our common stock issued upon exercise of our warrants will result
in dilution to the then existing holders of our common stock and increase the number of shares eligible for resale in the public market.
Sales of substantial numbers of such shares in the public market could adversely affect the market price of our common stock.

The
Excise Tax included in the Inflation Reduction Act of 2022 may decrease the value of our securities or decrease the amount of funds available
for distribution in connection with a liquidation.

On
August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “IR Act”), which, among other things,
imposes a 1% excise tax on certain repurchases (including certain redemptions) of stock by publicly traded domestic (i.e., U.S.) corporations
and certain domestic subsidiaries of publicly traded foreign (i.e., non-U.S.) corporations (each, a “covered corporation”).
The excise tax will apply to repurchases occurring in 2023 and beyond. The amount of the excise tax is generally 1% of the fair market
value of the shares repurchased at the time of the repurchase. The U.S. Department of Treasury has authority to provide regulations and
other guidance to carry out, and prevent the abuse or avoidance of, the excise tax. On December 27, 2022, the U.S. Department of the
Treasury issued a notice that provides interim operating rules for the excise tax, including rules governing the calculation and reporting
of the excise tax, on which taxpayers may rely until the forthcoming proposed Treasury regulations addressing the excise tax are published.
Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of other aspects of the excise tax
remain unclear, and such interim operating rules are subject to change. Because Ocean Biomedical is a Delaware corporation