Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 201

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 201
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 and the additional notes offered hereby), which will reduce the amount of money available to finance our operations and other business activities;

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

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

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    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;

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

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    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 and will limit our ability to incur debt and sell assets, could result in an event of default that, if not cured or waived, could have a material adverse effect on our business or prospects.

Our ability to meet our payment
obligations under our debt instruments 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 and amended and restated in July 2024. 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