Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1164

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7
Chunk 1164
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 Loan

In
February 2022, the Company entered into a Loan Agreement with Second Street Capital (the “Second Street Loan”), pursuant
to which the Company borrowed $0.6 million. The Second Street Loan accrues interest at the rate of 15% per annum, with principal and
interest due at maturity. The Company issued to Second Street Capital 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 Company was originally required to repay the Second Street Loan 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 $0.3 million for the put option. The accounting
treatment for the warrants is discussed within Note 10, Warrants.

    F-21

Second
Street Loan 2

In
April 2022, the Company entered into a second Loan Agreement with Second Street Capital (the “Second Street Loan 2”), pursuant
to which the Company borrowed $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. The Company issued to Second
Street Capital 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