Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 889

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 6
Chunk 889
---
 and shall transfer an additional 250,000 shares of common stock each month thereafter until the default
is cured. The Side Letter provides that, in the event we fail to repay the SPAC Loan by May 19, 2023, we shall issue to Sponsor 250,000
shares of common stock and shall issue an additional 250,000 such shares to Sponsor each month thereafter until the default is cured.

The
Sponsor Extension Loan was paid down at Closing of the Business Combination to $0.5 million. The outstanding balance of the Sponsor Extension
Loan was paid in full from the proceeds of the initial draw under the Ayrton Convertible Note Financing.

During
the fiscal year ended December 31, 2023, NPIC Lender was issued 200,000 shares of our common stock as consideration of the Modification
Agreement. The fair value was our closing stock price on the date granted. We recognized a loss of $1.2 million as loss on extinguishment
of debt. In addition, we recorded interest expense in the amount of $50 thousand on the outstanding balance in our consolidated financial
statements for the fiscal year ended December 31, 2023.

Deferred
Underwriting Commissions

At
Closing, the underwriters for AHAC’s initial public offering (“IPO”) agreed to defer payment of $3.2 million of deferred
underwriting discounts otherwise due to them until November 14, 2023, pursuant to the terms of a promissory note (the “Underwriter
Promissory Note”). The deferred amounts bear interest at 9% per annum and 24% per annum following an event of default under the
promissory note. The Company has a right to pay up to fifty percent (50%) of the principal and interest due on this promissory note using
the common stock of the Company at a price per share of $10.56. The remaining fifty percent (50%) of the principal and interest due on
this promissory note must be paid in cash. As of December 31, 2023 the Company had not repaid the Underwriter Promissory Note and the
outstanding balance of $3.2 million is recorded as a short-term loan in the consolidated financial statements. The Company recorded $0.4
million and $0.3 million of interest expense on the outstanding balance in the Company’s consolidated financial statements for
the fiscal years ended December 31, 2024 and 202