Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3054

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 8
Chunk 3054
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”),
subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement. These limitations stipulate, among other
things, that the Company may not sell, and White Lion may not purchase, shares of the Company common stock that would result in White
Lion owning more than 9.99% of the outstanding common stock of the Company. The Common Stock Purchase Agreement expires after two years.

In
accordance with ASC 815, Derivatives and Hedging, the Company has determined that the right to sell additional shares represents
a freestanding put option, and as such, the financial instrument was classified as a derivative asset with a nominal fair value.

In
consideration for the commitments of White Lion to purchase Equity Line Shares, the Common Stock Purchase Agreement included 75,000
initial commitment shares to White Lion, which had a fair value of $0.5
million upon issuance. The $0.5
million in commitment costs was recorded in other income (expense) in the Company’s consolidated statements of operations for
the year ended December 31, 2023.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed
price “Purchase Notice” under the Common Stock Purchase Agreement at $7.00 per share if the market price for the Common Stock
exceeds $9.00 per share. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock under
the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.

Sponsor
Promissory Notes

Upon
consummation of the Business Combination, the Company assumed two of AHAC’s loans, totaling $2.1 million, one of which accrued
interest at 8% per annum and the other accrued interest at 15% per annum. Both loans were due within five days of Closing. $0.5 million
was paid down at Closing, with the remaining paid down in May 2023 via the proceeds received from the initial Note under the Ayrton Convertible
Note Financing. Refer to Note 7, Senior Secured Convertible Notes, for further detail on the Notes.

    F-18

In
connection with the assumption of AHAC