Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 259

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 4
Chunk 259
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 depends on our ability to generate significant cash flows or obtain
external financing in the future. And, in certain cases our debt obligations may be satisfied by way of a conversion into our common
stock, and therefore, our ability to satisfy certain debt obligations is dependent, in part, on the performance of our common stock.
In each case, to some extent this is subject to market, economic, financial, competitive, legislative, and regulatory factors as well
as other factors that are beyond our control. There can be no assurance that our business will generate cash flow from operations, or
that additional capital will be available to us, in amounts sufficient to enable us to meet our debt payment obligations and to fund
other liquidity needs. Additionally, events and circumstances may occur which would cause us to not be able to satisfy applicable draw-down
conditions and utilize additional funds under the securities purchase agreement entered into in May 2023. If we are unable to generate
sufficient cash flows, or the value of our common stock is insufficient to facilitate conversions of debt obligations as may be necessary
to service our debt payment obligations, we may need to refinance or restructure our debt, sell assets, reduce or delay capital investments,
or seek to raise additional capital. If we are unable to implement one or more of these alternatives, we may be unable to meet our debt
payment obligations, which could have a material adverse effect on our business, results of operations, or financial condition.

52

Despite
our existing level of indebtedness, we may incur more indebtedness. This could further exacerbate the risks described above, including
our ability to service our existing indebtedness.

We
may be able to incur substantial additional indebtedness in the future. Although certain of our debt arrangements contain restrictions
on the incurrence of additional indebtedness, such restrictions are subject to a number of qualifications and exceptions, and under certain
circumstances indebtedness incurred in compliance with such restrictions could be substantial. To the extent new debt is added to our
current debt levels, the risks described above would increase.

To
service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our
control.

Our
ability to make payments on and to refinance our indebtedness, including our outstanding notes, and to fund intended research and development
efforts will depend on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial,
competitive, legislative, regulatory