Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 77

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 77
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 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)
    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.

    (vi)
    As consideration for entering into the amendment, the Company issued 25,000 shares of its common stock to McKra. The fair value of the shares issued are recorded in the Company’s condensed consolidated statements of operations as a loss on debt extinguishment.

During each of the three months
ended March 31, 2025, and 2024, the Company recognized $38 thousand of interest expense on the McKra Loan, respectively.

Poseidon Demand Note

On October 2,
2023, the Company issued a demand promissory note to its largest stockholder and related party, Poseidon Bio, LLC (“Poseidon”) for $0.7
million (the”Poseidon Demand Note”). The entire principal amount of the Poseidon Demand Note will be due and payable in
full on demand, or on such earlier date the principal amount may become due and payable pursuant to certain triggering events (the
“Maturity Date”). Interest accrues on the unpaid principal amount of the Poseidon Demand Note at a rate of 5%
per annum and is payable on the Maturity Date. During each of the three months ended March 31, 2025 and 2024, the Company recognized
interest expense of $8
thousand on the Poseidon Demand Note, which is reflected in other income (expense) in the condensed consolidated statement of
operations for the three months ended March 31, 2025 and 2024.

Underwriter Promissory Note

For a discussion of an outstanding
note due to the underwriters in AHAC’s IPO, see Note 3, Business Combination and Backstop Agreement.

7. Senior Secured Convertible Notes

Senior Secured Convertible Notes

In May 2023, the Company entered
into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Investor”) for the sale of
up to three Senior Secured Convertible Notes (each, a “Note” and collectively, the “