Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 632

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 632
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 filing carveout until August
15, 2024. The current Notes had an extension of the maturity date until December 15, 2024 and installment payments have been waived
until the earlier of the date on which the Company’s 2023 Form 10-K was filed and September 1, 2024, with subsequent
installments continuing to be due on the first of each month thereafter. The investor has agreed to extend the maturity to April
2025. No payments have been made.

The
Company shall issue to the investor 3,844,466 restricted shares of its common stock 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 shall be exchangeable on a one for one basis into
restricted shares of common stock on or after August 1, 2024. All securities are being issued in private placement transactions exempt
from registration under Section 4(a)(2) under the Securities Exchange Act of 1934 as amended.

The
principal amount of the initial 2024 Convertible Notes, which were issued in exchange for the 2023 Convertible Notes is $9.7
million, after giving effect to the principal amount of the 2023 Convertible Notes, the Event of Default Interest to date and
Redemption Premium. At July 15, 2024, the 2023 Convertible Notes were valued at $7.1
million, consisting of the fair value of the 2023 Convertible Notes of $6.3
million, plus accrued and unpaid interest of $0.8
million. The $9.7
million of 2024 Convertible Notes were valued at $6.8
million, resulting in a gain on exchange of notes of $0.3
million. Similarly, the Company valued the SPA Warrants issued in 2023 at $1.6
million and the value of the SPA Warrants issued in the exchange in 2024 at $2.0
million, resulting in a loss on exchange of notes of $0.4
million. The Company has recorded a net loss on exchange of notes of $0.1
million as other income (expense) on its consolidated statement of operations for the year ended December 31,
2024.