Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 39

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 39
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 of a share of Company common stock as of July 22, 2024), and (ii) payment of the remaining balance of $1.7 million
in cash at the time of closing of the Company’s next financing with net proceeds to the Company of more than $10 million either
in a public offering or private transaction, or if such a closing does not occur on or before September 30, 2024, in shares of restricted
Common Stock of the Company (at a price per share equal to the 30 day VWAP of a share of Company common stock as of September 30, 2024).
Since the Company did not close a financing with net proceeds to the Company of more than $10 million prior to September 30, 2024, the
Company did not pay the remaining balance of $1.7 million in cash.

All
securities are being issued in private placement transactions exempt from registration under Section 4(a)(2) under the Securities Exchange
Act of 1934 as amended.

Poseidon
Demand Note

On
October 2, 2023, the Company issued a demand promissory note to its largest stockholder, Poseidon Bio, LLC (“Poseidon”) for
$0.7 million (the”Poseidon Demand Note”). The entire principal amount of the Poseidon Demand Note will be due and payable
in full on demand, or on such earlier date the principal amount may become due and payable pursuant to certain triggering events (the
“Maturity Date”). Interest accrues on the unpaid principal amount of the Poseidon Demand Note at a rate of 5% per annum and
is payable on the Maturity Date. During the three months ended September 30, 2024, the Company recognized interest expense of $8 thousand.
During the nine months ended September 30, 2024, the Company recognized interest expense of $25 thousand, on the Poseidon Demand Note,
which is reflected in other income (expense) in the condensed consolidated statement of operations for the nine months ended September
30, 2024.

Underwriter
Promissory Note

For
a discussion of an outstanding note due to the underwriters in AHAC’s IPO, see Note 3, Business Combination and Backstop Agreement.

7.
Senior Secured Convertible Notes

Senior
Secured Convertible Notes

In
May 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Invest