Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 825

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 825
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 accrued unpaid interest.

    (iv)
    In
    the event the Company raises additional equity through financing arrangements of at least $25.0 million, the Company is required
    to use the proceeds to repay the remainder of its outstanding loans plus any accrued unpaid interest.

    (v)
    In
    exchange for the amendment, the Company issued 25,000 shares of its common stock to Second Street Capital. The fair value of the
    shares issued are recorded in the Company’s consolidated statements of operations as a loss on debt extinguishment.

Second
Street Loans – Interest Expense

During
the fiscal years ended December 31, 2024 and 2023, the Company recognized $0.3 million and $0.7 million of interest expense on the Second
Street Loans, respectively, including $0.4 million related to the amortization of debt issuance costs during the fiscal year ended December
31, 2023.

McKra
Loan

In
March 2023, the Company entered into a Loan Agreement with McKra Investments III (“McKra”) pursuant to which the Company
borrowed $1.0 million, which bears interest at 15% per annum (the “McKra Loan”). The Company is required to pay a $0.2 million
loan and convenience fee due upon repayment of the loan. The Company issued a warrant to purchase 200,000 shares of the Company’s
common stock, with an exercise price of $10.34 per share, exercisable until March 27, 2028. The accounting treatment for the warrants
is discussed within Note 10, Warrants.

    F-22

The
McKra Loan was amended, effective as of May 2023, including the following terms:

    (i)
    Upon
    execution of the amendment, the Company paid the remainder of outstanding fees due.

    (ii)
    Within
    5 business days of the receipt of the first Additional Closing (as defined within the Securities Purchase Agreement, discussed in
    Note 7, Senior Secured Convertible Notes), the Company is required to pay $0.5
    million towards its outstanding loans.

    (iii)
    Within
    5 business days of the second Additional Closing (as defined in Note 7, Senior Secured Convertible Notes), the Company is
    required to pay $0.5
    million towards its outstanding loans plus
    any accrued unpaid interest.

    (iv)