Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2030

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7A
Chunk 2030
---

date of grant.

The
warrant issued in connection with the March Second Street Loan, exercisable for 200,000 shares of the Company’s common stock, was
treated as a debt discount and the respective fair value is being amortized over the life of the term of the loan. For those warrants
issued in exchange for maturity extensions, the Company concluded that they met the accounting requirements for debt extinguishments
and as such the fair values of the warrants, as well as related fees, were recorded in full to other income/(expense) in the period of
issuance, with the offset to additional paid-in capital. As of December 31, 2024, all of the warrants remain outstanding.

McKra
Investments III Warrant

In
connection with the McKra Loan, discussed in Note 6, Short-Term Loan Agreements, the Company issued a warrant exercisable to purchase
200,000 shares of its common stock. The warrant is being treated as a debt discount and the fair value is being amortized over the life
of the term of the warrant. During the fiscal year ended December 31, 2023, the Company recognized $0.8 million in other income (expense)
in its consolidated statements of operations based on the estimated fair value of the awards on the date of grant. As of December 31,
2024, the warrant remains outstanding.

Special
Forces F9 Warrant

In
connection with a strategic advisory agreement, dated March 19, 2023, between the Company and Special Forces, the Company issued to Special
Forces a warrant to purchase 150,000 shares of its common stock with an exercise price of $11.50 per share exercisable until March 7,
2028. Warrants issued to advisors and consultants are also considered stock-based compensation. The estimated fair value of the warrant
to purchase common stock on the grant date was $3.89 per share and was determined using the Black-Scholes Merton model.

In
the first quarter of 2023, the full amount of the $0.6 million of the fair value of the warrant was recognized since the warrant was
fully vested upon issuance. The fair value was recorded as stock-based compensation within general and administrative expense on the
Company’s consolidated statements of operations. As of December 31, 2024, the warrant remains outstanding.

    F-34

SPA
Warrant

In
connection with the Ayrton Convertible