Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1521

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 10
Chunk 1521
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 650 

    Short-term loans, net of issuance costs 
    $16,300  
    $12,118 

Second
Street Capital Loans

Second
Street Loan

In
February 2022, the Company entered into a Loan Agreement with Second Street Capital (the “Second Street Loan”), 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.

    F-21

Second
Street Loan 2

In
April 2022, the Company entered into a second Loan Agreement with Second Street Capital (the “Second Street Loan 2”), pursuant
to which the Company borrowed $0.2 million, which was later amended in January 2023 to borrow an additional $0.2 million. The Second
Street Loan 2 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 62,500 shares of the Company’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. The Company was originally required to repay the Second Street
Loan 2 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 $0.4 million for the warrants issued based on the estimated fair value of the awards on the date of grant. The accounting
treatment for the warrants is discussed within