Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1871

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 13
Chunk 1871
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 annum following an event of default under the
promissory note. The Company has a right to pay up to fifty percent (50%) of the principal and interest due on this promissory note using
the common stock of the Company at a price per share of $10.56. The remaining fifty percent (50%) of the principal and interest due on
this promissory note must be paid in cash. As of December 31, 2023 the Company had not repaid the Underwriter Promissory Note and the
outstanding balance of $3.2 million is recorded as a short-term loan in the consolidated financial statements. The Company recorded $0.4
million and $0.3 million of interest expense on the outstanding balance in the Company’s consolidated financial statements for
the fiscal years ended December 31, 2024 and 2023, respectively.

On
March 4, 2024, the Company converted the convertible portion of the Underwriter Promissory Note into 169,582 restricted shares of its
common stock at the conversion price of $10.56. The principal amount converted was $1.6 million, plus $0.2 million of accrued interest
thereon. As of December 31, 2024, the Company had not repaid any of remaining principal balance of $1.6 million, which is recorded as
a short-term loan in the consolidated financial statements.

On
November 13, 2024, the Company received a notice of default with regard to its 2023 promissory note with EF Hutton, which alleges that
$2.1 million is due under the promissory note, consisting of the unpaid principal balance of $1.6 million, plus accrued and unpaid interest
of $0.5 million.

4.
Fair Value Measurements

Financial
liabilities measured at fair value during the year on a recurring basis consisted of the following as of December 31, 2024:

 Schedule
of Fair Value of Assets and Liabilities

    (in thousands) 
    Level 1  
    Level 2  
    Level 3  
    Total 

    Fair Value Hierarchy  

    (in thousands) 
    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Backstop Put Option Liability 
    $-  
    $-  
    $(59,056)