Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 532

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 532
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ards Codification (“ASC”) 718, Stock Compensation. As a result, the related transactions by the stockholder were pushed
down into our consolidated financial statements. As of March 31, 2023, Legacy Ocean’s founder held 100% of the voting power and
69% of the equity interests in Poseidon. The Business Combination will have no impact on the Poseidon Class B units and we do not anticipate
that Poseidon will make any additional grants.

In
March 2021, we authorized the issuance of shares of common stock in Legacy Ocean to certain persons who were accredited investors (consisting
of friends and family of Legacy Ocean’s employees) at an aggregate offering price of $1.0 million. As of February 14, 2023, Legacy
Ocean had issued 41,828 shares of common stock at an aggregate offering price of $1.0 million.

In
February 2022, we entered into a the Second Street Loan with Second Street Capital, pursuant to which we borrowed $0.6 million. The Second Street Loan accrues interest at the rate of 15% per annum,
with principal and interest due at maturity. We issued to Second Street Capital a warrant to purchase 312,500 shares of Legacy Ocean
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 our next financing, Second Street Capital has the right to put the warrants to the Company in exchange for a payment of $0.3 million.
We were originally required to repay the Second Street Loan on the earlier of (i) 5 business days after our next financing or (ii) November
18, 2022. We recognized as interest expense in Other income(expense) $0.3 million for the put option in the first quarter of 2022.

In
April 2022, we entered into a second the Second Street Loan 2 with Second Street Capital,
pursuant to which the Company borrowed $0.2 million. The Second Street Loan 2 accrues interest at the rate of 15% per annum, with
principal and interest due at maturity. We issued to Second Street Capital a warrant to purchase 62,500 shares of Legacy Ocean
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.