Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 519

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 519
---
 financing
or (ii) May 23, 2022. Legacy Ocean issued to Second Street Capital a warrant to purchase 312,500 shares of Legacy Ocean’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
our next financing, Second Street Capital has the right to put the warrants to us in exchange for a payment of $0.3 million. On April
22, 2022, the February 2022 Second Street Loan was amended whereas the maturity date was extended from May 23, 2022 to November 18, 2022.
Legacy Ocean recognized a loss and recorded the liability of $0.3 million for the put option in its consolidated financial statements
for the period ended September 30, 2022.

In
April 2022, Legacy Ocean entered into a second Loan Agreement with Second Street Capital (the “April 2022 Second Street Loan”),
where Legacy Ocean borrowed $0.2 million, which was used to pay a $15,000 loan fee, $15,000 fee for amending the February 2022 Second
Street Loan to extend the maturity date, and $20,000 next day loan fee. The April 2022 Second Street Loan accrues interest at the rate
of 15% per annum, with principal and interest due at maturity. Legacy Ocean issued to Second Street Capital a warrant to purchase 62,500
shares of Legacy Ocean’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. Legacy Ocean was required to repay the April 2022 Second Street Loan on the earlier of (i) 5
business days after Legacy Ocean’s next financing or (ii) November 18, 2022. Legacy Ocean recognized a loss of $388,938 for the
warrant issued based on the estimated fair value of the awards on the date of grant in Legacy Ocean’s consolidated financial statements
for the period ended September 30, 2022.

180

On
September 30, 2022, the February 2022 Second Street Loan and April 2022 Second Street Loan were amended whereas the maturity date was
extended from November 18, 2022 to December 30, 2022. In consideration of the extension, Legacy Ocean issued