Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 698

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 698
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 expenses of Legacy Ocean. The Second Street Loan accrues interest at the rate of 15% per annum, with principal and
interest due at maturity. Legacy Ocean was required to repay the Second Street Loan on the earlier of (i) 5 business days after
Legacy Ocean’s next financing or (ii) May 23, 2022. Legacy Ocean issued to Second Street Capital, LLC a warrant to purchase
312,500 shares of Legacy Ocean’s common stock, with an exercise price of $11.00 per share, exercisable until February 22,
2026. For a period of 180 days from the closing of Legacy Ocean’s next financing, Second Street Capital, LLC has the right to
put the warrants to Legacy Ocean in exchange for a payment of $0.3 million. On April 22, 2022, the February 2022 Second Street Loan
Agreement was amended whereas 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