Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1766

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 12
Chunk 1766
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0.2 million was recorded as fair value of non-cash stock issuances on the consolidated statement of operations or the shares
issued based on the grant date fair values.

Between
March 4, 2024 and March 8, 2024, the holder of the Company’s 2023 Convertible Note sent Alternate Conversion Notices to the Company
to convert the principal value and accrued and unpaid interest into shares of the Company’s common stock pursuant to the Alternate
Conversion Price mechanism in the 2023 Convertible Note. The Company is currently evaluating the situation and working with the noteholder
to arrive at an equitable resolution.

Effective
July 23, 2024, the Company entered into an amendment and exchange agreement, whereby the 2023 Convertible Notes were exchanged for
new notes and also included further arrangements to fund up to $7.7 million
in additional secured notes (collectively, the “2024 Convertible Notes”). The first two tranches of additional secured
notes of $1.1 million
and $2.7 million
were funded in July 2024 and November 2024, respectively, to various vendors on behalf of the Company to address costs of the
Company in preparing its 2023 consolidated financial statements and subsequent quarterly reporting requirements, among other things.
The balance of the funds shall be released by the investor upon the Company reaching certain milestones over the next several
months.

All
prior defaults under the existing transaction documents have been deemed cured, and there was a late filing carveout until August 15,
2024. The current Notes have had an extension of the maturity date until December 15, 2024 and installment payments have been waived
until the earlier of the date on which the Company’s 2023 Form 10-K was filed and September 1, 2024, with subsequent installments
continuing to be due on the first of each month thereafter. The investor has agreed to extend the maturity to April 2025. No payments
have been made.

The
Company shall issue to the investor 3,844,466 restricted shares of its common stock in settlement of all past defaults and penalty shares
to be issued in conjunction therewith, subject to a leak out of 15% of daily trading value unless the sales price of such shares is above
$5.00 per share. The Company also issued the investor 1,332,806 warrants which shall be exchangeable on a one for one basis into
restricted shares