Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1165

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7
Chunk 1165
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 Street Loan” and
together with the Second Street Loan and Second Street Loan 2, the “Second Street Loans”) pursuant to which the Company could
borrow up to $1.0 million to pay certain accrued expenses. Of this amount, the Company borrowed $0.7 million. The loan bears interest
at 15% per annum. The Company issued a warrant to Second Street Capital for 200,000 shares of the Company’s common stock, exercisable
for five years at an exercise price of $10.34 and will pay up to $0.2 million in loan fees at maturity. Since the Company only borrowed
$0.7 million, the loan fee of $0.1 million is due at maturity. The accounting treatment for the warrants is discussed within Note 10,
Warrants.

Second
Street Capital Loan Amendments

In
connection with amendments to the Second Street Loans, an additional 225,000 and 75,000 warrants to purchase the Company’s common
stock were issued to Second Street Capital in 2023 and 2022, respectively. The terms of the warrants and respective accounting treatments
are summarized in Note 10, Warrants.

The
most recent amendment, effective as of May 2023, included the following terms, with no conditions present as of December 31, 2024:

    (i)
    Upon
    execution of the amendment, the Company paid the remainder of outstanding fees due.

    (ii)
    Within
    5 business days of the receipt of the first Additional Closing (as defined within the Securities Purchase Agreement, discussed in
    Note 7, Senior Secured Convertible Notes), the Company is required to pay $0.5 million towards its outstanding loans.

    (iii)
    Within
    5 business days of the second Additional Closing (as defined within the Securities Purchase Agreement), the Company is required to
    pay $1.2 million towards its outstanding loans plus any accrued unpaid interest.

    (iv)
    In
    the event the Company raises additional equity through financing arrangements of at least $25.0 million, the Company is required
    to use the proceeds to repay the remainder of its outstanding loans plus any accrued unpaid interest.

    (v)
    In
    exchange for the amendment, the Company issued 25,000 shares of its common stock to Second Street Capital. The fair value of the
    shares issued are recorded in the Company’s consolidated statements of operations as a loss on debt extingu