Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2331

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2331
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 Shares.

    (5)
    Pursuant
    to the McKra Loan Amendment, (i) the Company shall pay to McKra an amount of $0.2 million upon the execution of the McKra Loan Amendment;
    (ii) within five (5) business days of the Company’s receipt of funds in connection with the first Additional Closing (as defined
    in the SPA) under the SPA, the Company shall pay McKra an amount of $0.5 million; (iii) within five (5) business days of the Company’s
    receipt of funds in connection with the second Additional Closing (as defined in the SPA) under the SPA, the Company shall pay McKra
    an amount of $0.5 million plus any accrued unpaid interest; (iv) the Company shall repay advances made under the McKra Loan Agreement
    plus any accrued unpaid interest to McKra in the event of a capital raise of a minimum amount of $25.0 million; (v) in exchange for
    the McKra Loan Amendment, the Company shall issue 25,000 shares of Common Stock of the Company (the “McKra Extension Shares”)
    to McKra within five (5) business days of the execution of the McKra Loan Amendment; and (vi) the Company shall file a registration
    statement for the issuance of the McKra Extension Shares no later than thirty (30) days following such issuance of McKra Extension
    Shares.

The
terms of the loans listed in the above table are described above.

Cash
Flows

To
date, we have not generated any revenue. Cash flows to date have resulted from financing activities, including payments made on behalf
of the Company by related parties and net proceeds from issuance of shares of common stock consisting of friends and family of our employees
and short-term borrowings. As of December 31, 2024, our restricted cash balance of approximately $0.2 million is held in an escrow account. We do not have any cash equivalents. Cash used in operating activities was used to pay legal and accounting fees. Accounts payable
and accrued expenses of $16.5 million and $17.1 million as of December 31, 2024 and 2023, respectively, were recorded.

ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

To
minimize the risk in the future, we intend to maintain our portfolio of cash equivalents in institutional