Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1134

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7
Chunk 1134
---
 $-  
    $(1,272)
  
    SPA warrant liability upon issuance 
    $-  
    $1,932 

See
accompanying notes to the consolidated financial statements

F-7

OCEAN
BIOMEDICAL, INC. AND SUBSIDIARIES

Notes
to Consolidated Financial Statements

1.
Organization, Description of Business, and Going Concern

Description
of Business

Ocean
Biomedical, Inc. is a biopharmaceutical company that is focused on discovering and developing therapeutic products in oncology, fibrosis,
and infectious diseases.

Business
Combination Agreement

On
February 14, 2023, Aesther Healthcare Acquisition Corp. (“AHAC”) completed the acquisition of Ocean Biomedical Holdings,
Inc. (“Legacy Ocean”) pursuant to the definitive agreement dated August 31, 2022, and as amended on December 5, 2022 (the
“Business Combination Agreement”), by and among, AHAC, AHAC Merger Sub Inc., a wholly-owned subsidiary of AHAC, Aesther Healthcare
Sponsor, LLC, Legacy Ocean, and Dr. Chirinjeev Kathuria (the “Closing”). Upon Closing, AHAC Merger Sub Inc. merged with and
into Legacy Ocean, with Legacy Ocean surviving the merger as a wholly owned subsidiary of AHAC. AHAC changed its name from “Aesther
Healthcare Acquisition Corp.” to “Ocean Biomedical, Inc.” and is referred to herein as “the Company.” Unless
context otherwise requires, the reference to “AHAC” refers to the Company prior to Closing.

Under
the Business Combination Agreement, the Company acquired all outstanding capital stock of Legacy Ocean for approximately $240.0 million,
in aggregate consideration before transaction and other fees, which Legacy Ocean stockholders received in the form of shares of common
stock of the Company (the consummation of the business combination and other transactions contemplated by the Business Combination Agreement,
collectively, the “Business Combination”).

The
Business Combination was accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”). Under this method of accounting, AHAC, which is the legal acquirer, is treated as the “acquired”
company for financial reporting purposes and Legacy Ocean is treated as the accounting acquirer. The net assets of AHAC are stated at
historical cost, with no goodwill or other intangible assets recorded.