Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1730

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 12
Chunk 1730
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successful development and commercialization of product candidates, fluctuations in operating results and financial risks, the ability
to successfully raise additional funds when needed, protection of proprietary rights and patent risks, patent litigation, compliance
with government regulations, dependence on key personnel and prospective collaborative partners, and competition from competing products
in the marketplace.

Going
Concern

The
accompanying consolidated financial statements are prepared in accordance with U.S. GAAP applicable to a going concern, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business.

The
Company had no cash inflows from operating activities for the year ended December 31, 2024. As of December 31, 2024, the Company had
minimal cash, restricted cash of $0.2 million and a working capital deficiency of $33.1 million. The Company’s current operating
plan indicates it will incur losses from operations and generate negative cash flows from operating activities, given anticipated expenditures
related to research and development activities and its lack of revenue generating activity at this point in the Company’s lifecycle.
These events and conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year
after the date the financial statements are issued.

    F-8

The
Company will need to raise additional funds in order to advance its research and development programs, operate its business, and meet
its current and future obligations as they come due. Based on the Company’s current operational plans and assumptions, which may
not be realized, the Company expects to use the net proceeds from the Backstop Agreement (as defined in Note 3, Business Combination
and Backstop Agreement) and future debt and equity financings, including possibly under the Common Stock Purchase Agreement (as defined
in Note 3, Business Combination and Backstop Agreement) and the SPA entered into in May 2023 (as defined in Note 7, Senior
Secured Convertible Notes) as well as further deferrals of certain of its accrued expenses and contingency payments due upon the
closing of future financings to fund operations. However, the Company’s ability to utilize certain of its in-place financing arrangements,
such as the Backstop Agreement, or execute on new sources of liquidity are dependent on various factors outside of the Company’s
control, including market conditions and the performance of the Company’s common stock.

There
is no assurance that the Company will be successful in obtaining additional financing on terms acceptable to the Company, if at all,
and the Company may