Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 331

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 2
Chunk 331
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 there is a current registration statement in effect with respect to the shares of common stock underlying such warrants.

The
right to exercise will be forfeited unless the IPO Warrants are exercised prior to the date specified in the notice of redemption. On
and after the redemption date, a record holder of an IPO Warrant will have no further rights except to receive the redemption price for
such holder’s warrant upon surrender of such warrant. If the Company calls the IPO Warrants for redemption as described above,
its management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis.”
In such event, each holder would pay the exercise price by surrendering the warrants for that number of shares of the Company’s
common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock underlying the warrants,
multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y)
the fair market value. The “fair market value” for this purpose shall mean the average reported last sale price of the shares
of common stock for the five trading days ending on the third trading day prior to the date on which the notice of redemption is sent
to the holders of warrants.

For
accounting purposes, the Company accounts for the IPO Warrants (i) in accordance with the guidance contained in ASC 480-10-25-8 and ASC
815-40 and (ii) classified as an equity instrument. The fair values of the IPO Warrants were accounted for as deemed dividends. Since
the entries to recognize the fair value of the IPO Warrants offset within additional paid-in capital, there is no inherent impact to
the consolidated financial statements.

Additional
Share Consideration

In
connection with a Marketing Services Agreement, dated March 7, 2023, between the Company and Outside The Box Capital (“OTBC”),
the Company issued to OTBC 13,257 shares of its common stock as consideration, pursuant to the Marketing Services Agreement, in the second
quarter of 2023. The fair value of this stock issuance of $0.1 million was recorded within other income/(expense) in the Company’s
consolidated statements of operations for the fiscal year ended December 31, 2023.

11.
Net loss Per Share

The
Company computes basic loss per share using net loss attributable to stockholders and the weighted-average number of the Company’s
common stock shares