Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3465

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3465
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 achieve market acceptance. If we do not successfully develop
and commercialize product candidates, we will not be able to generate product revenue in the future, which likely would result in significant
harm to our financial position and adversely affect our stock price.

Additionally,
we may pursue additional in-licenses or acquisitions of development-stage assets or programs, which entails additional risk to us. While
we believe our subsidiary model offers an attractive platform for these transactions and for potential partners, our model is unique
and we may not be able to attract or execute transactions with licensors or collaborators who may choose to partner with companies that
employ more traditional licensing and collaboration approaches. Identifying, selecting, and acquiring promising product candidates requires
substantial technical, financial and human resources expertise. Efforts to do so may not result in the actual acquisition or license
of a successful product candidate, potentially resulting in a diversion of our management’s time and the expenditure of our resources
with no resulting benefit. For example, if we are unable to identify programs that ultimately result in approved products, we may spend
material amounts of our capital and other resources evaluating, acquiring, and developing products that ultimately do not provide a return
on our investment. We expect to terminate programs in the future if they do not meet our criteria for advancement.

Our
subsidiaries are party to certain agreements that provide our licensors, collaborators or other shareholders in our subsidiaries with
rights that could delay or impact the potential sale of our subsidiaries or could impact the ability of our subsidiaries to sell assets,
or enter into strategic alliances, collaborations or licensing arrangements with other third parties.

69

Each
of our subsidiaries directly or indirectly licenses intellectual property from third parties and, future subsidiaries may be partially
owned by third party investors. These third parties may have certain rights that could delay collaboration, licensing or other arrangement
with another third party, and the existence of these rights may adversely impact the ability to attract an acquirer or partner.

We
may form additional subsidiaries and enter into similar agreements with future partners or investors, or our subsidiaries may enter into
further agreements, that in each case may contain similar provisions or other terms that are not favorable to us.

Our
ability to realize value from our subsidiaries may be impacted if we reduce our ownership to a minority interest or otherwise cede control
to other investors through contractual agreements or otherwise.

We
currently wholly own all of our subsidiaries, and plan to remain majority owners of future subsidiaries. However, in the event that any
of our subsidiaries require additional capital