Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 17

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 17
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 31, 2024.

Item 1A. Risk Factors

In addition to those the risk
factors set forth in Part I “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024,
and other reports we filed with the SEC, below are certain risk factors related to the Company and its operations.

Our level of indebtedness
and significant debt service obligations could adversely affect our financial condition or our ability to fulfill our obligations, including
the note issued in May 2023, and make it more difficult for us to fund our operations.

As of March 31, 2025, we had
$10.5 million in principal of indebtedness outstanding, including $5.2 million in principal amount of a convertible promissory note issued
in 2024 and the first quarter of 2025. We have very limited cash resources from which to repay any obligations that a lender requires
to be paid in cash. Our level of indebtedness could have important negative consequences to you and us, including:

    ●
    we may have difficulty satisfying our obligations with respect to our outstanding notes and debt obligations;

    ●
    we may have difficulty obtaining financing in the future for working capital, capital expenditures, acquisitions or other purposes;

    ●
    we will need to use a substantial portion of our available cash flow to pay interest and principal on our debt (including our currently outstanding notes and the additional notes offered hereby), which will reduce the amount of money available to finance our operations and other business activities;

    ●
    our debt level increases our vulnerability to general economic downturns and adverse industry conditions;

    ●
    our debt level could limit our flexibility in planning for, or reacting to, changes in our business and in our industry in general;

    ●
    certain of our debt obligations are secured by Company assets, and upon a default, of which there are several in existence as a result of the restatements discussed elsewhere in this Form 10-Q and failure to timely file this Form 10-Q, a lender may be able to seek to seize, control or otherwise monetize those assets to satisfy our debt obligations;

    ●
    our leverage could place us at a competitive disadvantage compared to our competitors that have less debt; and

    ●
    our failure to comply with the financial and other restrictive covenants in our debt instruments which, among other things, may require us to maintain specified financial ratios