Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 211

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 2
Chunk 211
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 Price as of such time of determination and (z) any such conversion
shall not take into account any limitations on the conversion of the Notes set forth in the Notes), and (ii) the maximum number of Warrant
Shares initially issuable upon exercise of the Warrants (assuming the issuance of each of the Additional Notes issuable hereunder and
without taking into account any limitations on the exercise of the Warrants set forth therein).”

The
SPA Amendment also amended and restated Section 7(b)(xxii) of the SPA as follows: “No Equity Conditions Failure (as defined in
the Initial Notes) then exists (assuming for such purposes, as applicable, that such applicable Additional Closing shall have occurred
immediately prior to such time of determination).”

Components
of Our Results of Operations

Revenue

To
date, we have not generated any revenue from any sources, including from product sales, and we do not expect to generate any revenue
from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result
in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales. However,
there can be no assurance as to when we will generate such revenue, if at all.

Operating
Expenses

Research
and Development Expenses

To
date, research and development expenses consist primarily of costs incurred for our research activities, including the development of
our product candidates. We expense research and development costs as incurred, which we expect will include:

    ●
    expenses
    incurred under our licenses and services agreements; and

    ●
    employee
    related expenses, including salaries and benefits for personnel engaged in research and development functions.

Research
and development expenses for the fiscal years ended December 31, 2024 and 2023, included:

    ●
    license
    fees, and

    ●
    expenses
    incurred for outside services with our CMO relating to the development of certain of our preclinical assets.

We
recognize external development costs based on an evaluation of the progress to completion of specific milestones using information provided
to us by our service providers. This process involves reviewing open contracts and purchase orders, communicating with our personnel
to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred
for the service when we have not yet been invoiced or otherwise notified of actual costs. Such amounts are expensed as the related goods
are