Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1292

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9B
Chunk 1292
---
3 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 probable and reasonably estimable. Given the nature of legal matters and the complexities
involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors,
the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery
or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have
a material effect on the outcome. For such matters, unless otherwise specified, we do not believe it is possible to provide a meaningful
estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which