Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 546

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 546
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aturity Date, the Sponsor shall transfer to the NPIC Lender 250,000 shares of our common stock owned by the Sponsor and shall
transfer an additional 250,000 such shares each month thereafter until the default is cured; (viii) we are obligated to file a registration
statement with the SEC registering the shares to be issued to Lender within 30 days of the transfer, including the Initial SPAC shares;
and (ix) in the event that we default on its obligations to the Lender set forth in (v), (vi) and (viii), we shall issue to NPIC Lender
250,000 shares of common stock 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