Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 43

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 43
---
, 2023 as interest payments.
A total of $0.2 million was recorded to other income (expense) for the shares issued based on the grant date fair values.

Between
March 4, 2024 and March 8, 2024, the holder of the Company’s 2023 Convertible Note sent Alternate Conversion Notices to the Company
to convert the principal value and accrued and unpaid interest into shares of the Company’s common stock pursuant to the Alternate
Conversion Price mechanism in the 2023 Convertible Note. The Company is currently evaluating the situation and working with the noteholder
to arrive at an equitable resolution.

Effective
July 23, 2024, the Company entered into further arrangements to fund up to an additional $7.7 million in additional secured notes (the
“2024 Convertible Notes”) in conjunction with the 2023 Convertible Note. The first tranche of $1.1 million was funded to
various vendors on behalf of the Company to address costs of the Company in preparing its 2023 financial statements and subsequent quarterly
reporting requirements, among other things. The balance of the funds shall be released by the investor upon the Company reaching certain
milestones over the next several months.

All
prior defaults under the existing transaction documents have been deemed cured, and there was a late filing carveout until August
15, 2024. The current Notes have had an extension of the maturity date until December 15, 2024 and installment payments have been
waived until the earlier of the date on which the Company’s 2023 Form 10-K is filed and September 1, 2024, with subsequent
installments continuing to be due on the first of each month thereafter. The investor has agreed to extend the maturity to March
2025. No payments have been made.

The Company shall issue to the investor 3,844,466 restricted shares of
its common stock in settlement of all past defaults and penalty shares to be issued in conjunction therewith, subject to a leak out of
15% of daily trading value unless the sales price of such shares is above $5.00 per share. The Company is also issuing the investor 1,332,806
warrants which shall be exchangeable on a one for one basis into restricted shares of common stock on or after August 1, 2024. All securities
are being issued in private placement transactions exempt from registration under Section 4(a)(2) under