Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2702

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2702
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 on the date of grant in our consolidated financial statements for the fiscal year ended December 31, 2023.

Effective
March 28, 2023, we entered into a Loan Agreement (the “McKra Loan”) with McKra Investments III (“McKra”) pursuant
to which we borrowed $1.0 million. We issued a warrant to purchase 200,000 shares of our common stock, with an exercise price of $10.34
per share, exercisable until March 27, 2028. We are required to pay a $0.2 million loan and convenience fee due upon repayment of the
loan. Repayment of the loan is due as described under “Short-Term Loans” below. The Company has to amortize the fair value
calculation over the term of the loan on a straight-line basis by days. The estimated fair value of the warrant was $0.8 million that
is amortized over the term of the loan. The Company recognized $0.3 million as interest expense in other income(expense) in its consolidated
financial statements for the fiscal year ended December 31, 2023, including $0.2 million related to the amortization of debt issuance
costs.

Effective
May 12, 2023, we entered into an Omnibus Amendment to Loan Agreements with Second Street Capital (“Second Street Loans Amendment”),
pursuant to which the Second Street Loan, the Second Street Loan 2, and the March Second Street Loan were each amended to extend the
maturity dates of the loans. See “Short-Term Loans” below for information regarding repayment of the loans.

Effective
May 12, 2023, we entered into an Amendment to Loan Agreement with McKra (“McKra Loan Amendment”), pursuant to which the McKra
Loan was amended to extend the maturity date of the loan. See “Short-Term Loans” below for information regarding repayment
of the loan.

Since
Legacy Ocean’s inception in 2019, we have devoted substantially all of our efforts to organizing, research and development activities,
business planning, building our intellectual property positions and providing general and administrative support for these operations.
We have not generated any revenue from product sales.

We
have incurred significant operating losses since inception. Our ability to generate product revenues sufficient to achieve profitability
will depend heavily upon the successful development and eventual commercialization of one or more of our current products or any future
products. Our net operating losses were $9