Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 31

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 31
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 on the outstanding balance in the Company’s condensed consolidated financial statements
for the nine months ended September 30, 2024 and 2023, respectively.

On
March 4, 2024, the Company converted the convertible portion of the Underwriter Promissory Note into 169,582 restricted shares of its
common stock at the conversion price of $10.56. The principal amount converted was $1.6 million, plus $0.2 million of accrued interest
thereon. As of September 30,2024, the Company had not repaid any of remaining principal balance of $1.6 million, which is recorded as
a short-term loan in the consolidated financial statements.

On
November 13, 2024, the Company received a notice of default with regard to its 2023 promissory note with EF Hutton, which alleges that
$2.1 million is due under the promissory note, consisting of the unpaid principal balance of $1.6 million, plus accrued and unpaid interest
of $0.5 million.

4.
Fair Value Measurements

Financial
liabilities measured at fair value during the year on a recurring basis consisted of the following as of September 30, 2024:

Schedule
of Fair Value of Assets and Liabilities

    (in thousands) 
    Level 1  
    Level 2  
    Level 3  
    Total 

    Fair Value Hierarchy  

    (in thousands) 
    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Backstop Put Option Liability 
    $-  
    $-  
    $(57,041) 
    $(57,041)
  
    Fixed Maturity Consideration 
     -  
     -  
     (5,163) 
     (5,163)
  
    2024 Convertible Notes (1) 
     -  
     -  
     (7,913) 
     (7,913)
  
    SPA Warrants 
     -  
     -  
     (3,573) 
     (3,573)
  
    Total financial liabilities 
    $-  
    $-  
    $(73,690) 
    $(73,690)

    (1)
    Refer to Note 6, Short-Term