Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1885

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 13
Chunk 1885
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million, after giving effect to the principal amount of the 2023 Convertible Notes, the Event of Default Interest to date and
Redemption Premium. At July 15, 2024, the 2023 Convertible Notes were valued at $7.1
million, consisting of the fair value of the 2023 Convertible Notes of $6.3
million, plus accrued and unpaid interest of $0.8
million. The $9.7
million of 2024 Convertible Notes were valued at $6.8
million, resulting in a gain on exchange of notes of $0.3
million. Similarly, the Company valued the SPA Warrants issued in 2023 at $1.6
million and the value of the SPA Warrants issued in the exchange in 2024 at $2.0
million, resulting in a loss on exchange of notes of $0.4
million. The Company has recorded a net loss on exchange of notes of $0.1
million as other income (expense) on its consolidated statement of operations for the fiscal year ended December 31, 2024. At
December 31, 2024, the principal amount outstanding under the 2024 Convertible Note was $13.3
million.

As
part of the agreement, Chirinjeev Kathuria, the Company’s Chairman, and Poseidon Bio, LLC, an entity controlled by Dr. Kathuria,
also agreed to grant a proxy on all of their shares of the Company’s common stock to an independent third party, to vote them as
that party sees fit, until such time as the Notes are paid in full.

As
of December 31, 2024, the Company is in default of its obligations with respect to Ayrton LLC as a result of, among other things, its
delinquent SEC filings.

8.
Commitments and Contingencies

Litigation

From
time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities,
including the significant matters described below that could have a material impact on our results of operations and cash flows. In many
proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or
even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until
a loss for a particular matter is considered