Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 157

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 157
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2024. The liability is remeasured
at each reporting period and the Company records any changes to fair value as necessary. As of March 31, 2025 and December 31, 2024, it
was determined that the fair value of the Ayrton Note Purchase Option was zero.

The Company issued 39,650 shares
of its common stock to the Investor during the fiscal year ended December 31, 2023, as interest payments. A total of $0.2 million was
recorded to other income (expense) for the shares issued based on the grant date fair values.

Effective July 23, 2024, the
Company entered into an amendment and exchange agreement, whereby the 2023 Convertible Notes were exchanged for new notes and also included
further arrangements to fund up to $7.7 million in additional secured notes (collectively, the “2024 Convertible Notes”).
The first three tranches of additional secured notes of $1.0 million, $2.7 million, and $1.0 million were funded in July 2024, November
2024 and February 2025, respectively, to various vendors on behalf of the Company to address costs of the Company in preparing its 2023
and 2024 consolidated financial statements and subsequent quarterly reporting requirements, among other things. The balance of the funds
shall be released by the investor upon the Company reaching certain milestones over the next several months.

All prior defaults under the
existing transaction documents have been deemed cured. The current Notes had an extension of the maturity date until December 15, 2024
and the investor has further agreed to extend the maturity to April 2025. No payments have been made.

In accordance with the July 2024
amendment, in January 2025, the Company issued 3,844,466 restricted shares of its common stock to the investor in settlement of all past
defaults and penalty shares to be issued in conjunction therewith, subject to a leak out of 15% of daily trading value unless the sales
price of such shares is above $5.00 per share. The Company also issued the investor 1,332,806 warrants which were exchangeable on a one
for one basis into restricted shares of common stock on or after August 1, 2024. All securities were issued in private placement transactions
exempt from registration under Section 4(a)(2) under the Securities Exchange Act of 1934