Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 103

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 103
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 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 and other factors that are beyond our control. We cannot assure you that our business when or if
our operations will ultimately generate sufficient cash flow from operations, that currently anticipated cost savings and operating improvements
will be realized on schedule or that future borrowings or another source of liquidity will be available to us in an amount sufficient
to enable us to pay our obligations, or to fund our other liquidity needs. If our cash flows and capital resources are insufficient to
fund our debt service obligations, or we are unable to identify and execute on another source of outside liquidity, we may be forced
to reduce or delay capital expenditures, sell material assets or operations, attempt to obtain additional equity capital or refinance
all or a portion of our indebtedness, including the 2023 Convertible Note, on or before maturity. In the absence of such operating results
and resources, we could face substantial cash flow problems and might be required to sell material assets or operations to meet our debt
service and other obligations. We cannot assure you as to the timing of such asset sales or the proceeds which we