Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 136

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 136
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, the Company issued a warrant to purchase 312,500 shares of the Company’s
common stock, with an exercise price of $11.00 per share, exercisable until February 22, 2026. For a period of 180 days from the closing
of the Company’s next financing, Second Street Capital has the right to put the warrants to the Company in exchange for a payment
of $0.3 million. The accounting treatment for the warrants is discussed within Note 10, Warrants.

    19

Second
Street Loan 2

In
May 2022, the Company entered into a second loan agreement with Second Street Capital (the “Second Street Loan 2”) to borrow
$0.2 million, which was later amended in January 2023 to borrow an additional $0.2 million. The Second Street Loan 2 accrues interest
at the rate of 15% per annum, with principal and interest due at maturity. In connection with this loan, the Company issued a warrant
to purchase 62,500 shares of the Company’s common stock, with an exercise price of $11.00 per share, exercisable until February
22, 2026. There is no put option associated with this loan. The Company was originally required to repay the Second Street Loan 2 on
the earlier of (i) 5 business days after the Company’s next financing or (ii) November 18, 2022. The Company recognized an expense
of $0.4 million for the warrants issued based on the estimated fair value of the awards on the date of grant. The accounting treatment
for the warrants is discussed within Note 10, Warrants.

March
Second Street Loan

In
March 2023, the Company entered into a new loan agreement with Second Street Capital (the “March Second Street Loan” and
together with the Second Street Loan and Second Street Loan 2, the “Second Street Loans”) pursuant to which the Company could
borrow up to $1.0 million to pay certain accrued expenses. Of this amount, the Company borrowed $0.7 million. The loan bears interest
at 15% per annum. The Company issued a warrant to Second Street Capital for 200,000 shares of the Company’s 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.