Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 707

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 707
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 loan advance for net
proceeds of $0.2 million. We were originally required to repay the principal and accrued interest of the Second Street Loan 2 the earlier
of (i) 5 business days after our next financing or closing of the Business Combination or (ii) February 15, 2023.

138

Effective
February 15, 2023, the Second Street Loan and Second Street Loan 2 were further amended whereas the maturity dates were extended from
February 15, 2023 to March 31, 2023. We were required to repay the principal and accrued interest of the Second Street Loan and Second
Street Loan 2 the earlier of (i) 5 business days after our next financing or (ii) March 31, 2023. In consideration of the extensions,
we issued to Second Street Capital a warrant to purchase 75,000 shares of our common stock with an exercise price of $10.34 per share
exercisable until March 31, 2028. An extension fee of $0.1 million was recorded and $0.2 million was recognized as interest expense in
other income(expense) in our consolidated financial statements for the quarter ended March 31, 2023.

Effective
March 29, 2023, we entered into a Loan Agreement with Second Street Capital (the “March Second Street Loan”) pursuant to
which we could borrow up to $1.0 million to pay certain accrued expenses. Of this amount, we borrowed $0.7 million. The loan bears interest
at 15% per annum and is due as described under “Short-Term Loans” below. We issued a warrant to the lender for 200,000 shares
of our common stock, exercisable for five years at an exercise price of $10.34 and will pay up to $0.2 million in loan fees at maturity.
Since the Company only borrowed $0.7 million, the loan fee due is $0.1 million at maturity. The estimated fair value of the warrant was
$0.7 million that is amortized over the term of the loan. The Company recognized $50 thousand as interest expense in other income(expense)
in its consolidated financial statements for the fiscal year ended December 31, 2023.

Effective
March 31, 2023, the Second Street Loan and the Second Street Loan 2 were further amended to extend the maturity dates to May 31, 2023,