Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 152

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 152
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 the Company’s common stock were issued to Second
Street Capital in 2023 and 2022, respectively. The terms of the warrants and respective accounting treatments are summarized in Note 10,
Warrants.

The most recent amendment, effective
as of May 2023, included the following terms, with no conditions present as of March 31, 2024:

    (i)
    Upon execution of the amendment, the Company paid the remainder of outstanding fees due.

    (ii)
    Within 5 business days of the receipt of the first Additional Closing (as defined within the Securities Purchase Agreement, discussed in Note 7, Senior Secured Convertible Notes), the Company is required to pay $0.5 million towards its outstanding loans.

    (iii)
    Within 5 business days of the second Additional Closing (as defined within the Securities Purchase Agreement), the Company is required to pay $1.2 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.

    (v)
    In exchange for the amendment, the Company issued 25,000 shares of its common stock to Second Street Capital. The fair value of the shares issued are recorded in the Company’s condensed consolidated statements of operations as a loss on debt extinguishment.

Second Street Capital Loans – Interest Expense

During each of the three months
ended March 31, 2025 and 2024, the Company recognized $0.1 million of interest expense on the Second Street Loans, respectively.

McKra Loan

In March 2023, the Company entered
into a Loan Agreement with McKra Investments III (“McKra”) pursuant to which the Company borrowed $1.0 million, which bears
interest at 15% per annum (the “McKra Loan”). The Company is required to pay a $0.2 million loan and convenience fee due upon
repayment of the loan. The Company issued a warrant to purchase 200,000 shares of the Company’s common stock, with an exercise price
of $10.34 per share, exercisable until March 27, 2028. The accounting treatment for the warrants is discussed within Note 10, Warrants.

    20

The McKra Loan was amended, effective
as of May 2023, including the following terms