Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1281

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9B
Chunk 1281
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. The Company measures the fair value at each reporting period, with changes in fair value recorded within other
income/(expense) in the Company’s consolidated statements of operations. As of December 31, 2023 and 2024, it was determined that the
fair value of the Ayrton Note Purchase Option was zero.

The
following table summarizes some of the significant inputs and assumptions used in the Black-Scholes Merton model:

 Summary of Significant Inputs and Assumptions Used in Black-Scholes Merton Model

    Ayrton Note Purchase Option 
    Estimated volatility  
    Risk-free rate 
  
    2024 
     13% 
     5.0%
  
    2023 
     13% 
     4.4%

The
following table provides a roll forward of the aggregate fair values of the Company’s Backstop Put Option Liability, Fixed Maturity
Consideration, the 2023/2024 Convertible Notes, SPA Warrant, and Ayrton Note Purchase Option for which fair values are determined using Level
3 inputs:

 Schedule of Fair Value Backstop Forward Purchase Agreement Asset

    Level 3 Rollforward (in thousands) 
    Backstop Put Option Liability  
    Fixed Maturity Consideration  
    2023/2024 Convertible Note  
    SPA Warrant  
    Ayrton Note Purchase Option 
  
    Balances as of January 1, 2023 
    $-  
    $-  
    $-  
    $-  
    $- 
  
    Initial fair value measurement 
     (12,414) 
     (3,166) 
     (5,628) 
     (1,932) 
     (269)
  
    Changes in fair value 
     (46,109) 
     (957) 
     10  
     1,168  
     269 
  
    Balance as of December 31, 2023 
     (58,523) 
     (4,123) 
     (5,618) 
     (764) 
     - 
  
    Balance 
     (58,523) 
     (4,123) 
     (5,618) 
     (764) 
     - 

    Effect of Note Exchange 
     -  
     -