Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 479

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 479
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 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.

    (v)
    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 consolidated statements of operations as a loss on debt extinguishment.

During
the fiscal years ended December 31, 2024 and 2023, the Company recognized $0.2 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 fiscal year ended December 31,
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 of a share of Company common stock as of July 22, 2024), and (ii) payment of the remaining balance of $1.7 million
in cash at the time of closing of the Company’s next financing with net proceeds to the Company of more than $10 million either
in a public offering or private transaction, or if such a