Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 74

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 74
---
  
    $15,899 

6. Loan Agreements

Short-term Loan Agreements

As of March 31, 2025 and December 31, 2024, the Company
had the following short-term loan balances:

Schedule of Short-term Loan Balances

    (in thousands) 
    March
31, 2025  
    December
31, 2024 
  
    Short-term loans: 

    Second Street Loan 
    $600  
    $600 
  
    Second Street Loan 2 
     400  
     400 
  
    March Second Street Loan 
     700  
     700 
  
    McKra Loan 
     1,000  
     1,000 
  
    Underwriter Promissory Note 
     1,575  
     1,575 
  
    2023 Convertible Note 
     4,425  
     11,375 
  
    Poseidon Demand Note 
     650  
     650 
  
    Short-term loans, net of issuance costs 
    $9,350  
    $16,300 

Second Street Capital Loans

Second Street Loan

In February 2022, the Company
entered into a loan agreement (the “Second Street Loan”) with Second Street Capital, pursuant to which the Company borrowed
$0.6 million. The Second Street Loan accrues interest at the rate of 15% per annum, with principal and interest due at maturity. The Company
issued to Second Street Capital a warrant to purchase 312,500 shares of the Company’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 the Company’s next financing, Second
Street Capital has the right to put the warrants to the Company in exchange for a payment of $0.3 million. The Company was originally
required to repay the Second Street Loan on the earlier of (i) 5 business days after the Company’s next financing or (ii) November
18, 2022. The Company recognized an expense of $0.3 million for the put option. The accounting treatment for the warrants is discussed
within Note 10, Warrants.

    19

Second Street Loan 2

In April 2022, the Company entered
into a second loan agreement with Second Street Capital (the “