Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 101

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 101
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, 2024, that materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

51

PART
II-OTHER INFORMATION

Item
1. Legal Proceedings

From
time to time, we may become involved in legal proceedings arising in the ordinary course of our business. As of the date of this Quarterly
Report on Form 10-Q, we were not a party to any material legal matters or claims except as set forth in our audited financial statements
for the year ended December 31, 2023 in our Annual Report on Form 10-K for the year ended December, 31, 2023.

In
the future, we may become party to legal matters and claims in the ordinary course of business, the resolution of which we do not anticipate
would have a material adverse impact on our financial position, results of operations or cash flows except as set forth in our audited
financial statements for the year ended December 31, 2023, in our Annual Report on Form 10-K for the year ended December, 31, 2023.

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, 2023, 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 September 30, 2024, we had $15.6 million in principal of indebtedness outstanding, including $9.7 million in principal amount of a
convertible promissory note issued in July 2023. 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