Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 97

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 97
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 in its condensed consolidated statements of operations based on the estimated fair value of the
awards on the date of grant. There was no related expense recognized during the three months ended March 31, 2025 and 2024. As of
March 31, 2025, the warrant remains outstanding.

Special Forces F9 Warrant

In connection with a strategic
advisory agreement, dated March 19, 2023 between the Company and Special Forces, the Company issued to Special Forces a warrant to purchase
150,000 shares of its common stock with an exercise price of $11.50 per share exercisable until March 7, 2028. Warrants issued to advisors
and consultants are also considered stock-based compensation. The estimated fair value of the warrant to purchase common stock on the
grant date was $3.89 per share and was determined using the Black-Scholes Merton model.

In the first quarter of 2023,
the full amount of the $0.6 million of the fair value of the warrant was recognized since the warrant was fully vested upon issuance.
The fair value was recorded as stock-based compensation within general and administrative expense on the Company’s condensed consolidated
statements of operations. As of March 31, 2025, the warrant remains outstanding.

    29

SPA Warrant

In connection with the amendment
and restatement of the Ayrton Convertible Note Financing in July 2024, the Company issued to an accredited investor a warrant A exercisable
for 552,141 shares of its common stock and a warrant B exercisable for 1,332,806 shares of its common stock. During the three months ended
March 31, 2025, the investor exercised the full amount of the warrant B. Refer to Note 7, Senior Secured Convertible Notes, for
further detail.

Public and Private Warrants

The Company has a total of 10,661,000
outstanding warrants to purchase one share of its common stock with an exercise price of $11.50 per share. Of these warrants, 5,250,000
were originally issued in AHAC’s IPO (the “Public Warrants”) and 5,411,000 were originally issued in a private placement
in connection with the IPO (the “Private Warrants,” and together with the Public Warrants, the “IPO Warrants”).

Each whole IPO Warrant entitles
the registered holder to purchase one share of common stock