Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 38

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 38
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 20

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

    (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 in Note 7, Senior Secured Convertible Notes), the Company is required to pay
    $0.5 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.

    (vi)
    As consideration for entering
    into the amendment, the Company issued 25,000 shares of its common stock to McKra. The fair value of the shares issued are recorded
    in the Company’s condensed consolidated statements of operations as a loss on debt extinguishment.

During
the three months ended September 30, 2024 and 2023, the Company recognized $0.1
million and $38 thousand of interest expense on the McKra Loan, respectively. During the nine months ended September 30, 2024 and
2023, the Company recognized $0.1
million and $0.3
million of interest expense on the McKra Loan, respectively, including $0.2
million, related to the amortization of debt issuance costs during the nine months ended September 30, 2023.

	In
2024, the Company entered into a settlement agreement with Second Street Capital and McKra Investments III with regard to $2.7 million
principal amount of promissory notes, plus accrued and unpaid interest and fees. The Company will satisfy payment of past due loan fees
by the issuance of 225,000 shares of restricted common stock. The Company will also satisfy the amount due for the principal amount of
the notes and accrued and unpaid interest through (i) the issuance of $1.7 million worth of restricted common stock (at a price per share
equal to the 30 day VWAP