Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 18

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 18
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 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 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.

49

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