Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1078

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7
Chunk 1078
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     (2,301)
  
    Fair value of non-cash stock issuances 
     -  
     (740)
  
    Transaction costs 
     (356) 
     (8,732)
  
    Loss on extinguishment of debt 
     -  
     (15,080)
  
    Loss on exchange of notes 
     (85) 
     - 
  
    Interest expense, including warrant issuances and amortization of debt issuance costs 
     (2,046) 
     (1,762)
  
    Net loss attributable to equity interest in Virion 
     (3,301) 
     (708)
  
    Change in fair value of Virion Contribution Liability 
     3,605  
     (777)
  
    Fair value of stock obligations 
     (47) 
     - 
  
    Other 
     -  
     (1)
  
    Total Other income(expense) 
     (5,682) 
     (104,252)

Liquidity
and Capital Resources

Since
our inception, we have incurred significant operating losses. We have not yet commercialized any products and we do not expect to generate
revenue from sales of products for several years, if at all. To date, we have funded our operations from the proceeds from the issuance
of common stock and debt, proceeds from the Backstop Agreement and through self-funding by our founder and have limited current cash
on hand to fund our operations. Based on our current operational plans and assumptions, we expect that the net proceeds from the Ayrton
Convertible Note Financing and future debt and equity financings which total net proceeds we estimate need to be at least $45.0 million,
as well as further deferrals of certain of our accrued expenses and contingency payments due upon the closing of future financings, are
required to fund operations through the fourth quarter of 2025. The Company borrowed an additional $1.7 million in March 2023, the proceeds
of which were used to pay certain accrued expenses. We consummated the closing for the sale of (i) the initial Note in the principal
amount of $7.6 million and (ii) a warrant to initially acquire up to 552,141 additional shares of our Common Stock with an initial exercise
price of $11.50 per share of Common Stock, subject to adjustment, exercisable immediately and