Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 124

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 124
---
 party to any material legal matters or claims except as set forth in our audited financial statements for the year ended December
31, 2024, in our Annual Report on Form 10-K for the year ended December, 31, 2024.

In the future, we may become party
to legal matters and claims in the ordinary course of business, the resolution of which we do not anticipate would have a material adverse
impact on our financial position, results of operations or cash flows except as set forth in our audited financial statements for the
year ended December 31, 2024, in our Annual Report on Form 10-K for the year ended December, 31, 2024.

Item 1A. Risk Factors

In addition to those the risk
factors set forth in Part I “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024,
and other reports we filed with the SEC, below are certain risk factors related to the Company and its operations.

Our level of indebtedness
and significant debt service obligations could adversely affect our financial condition or our ability to fulfill our obligations, including
the note issued in May 2023, and make it more difficult for us to fund our operations.

As of March 31, 2025, we had
$10.5 million in principal of indebtedness outstanding, including $5.2 million in principal amount of a convertible promissory note issued
in 2024 and the first quarter of 2025. We have very limited cash resources from which to repay any obligations that a lender requires
to be paid in cash. Our level of indebtedness could have important negative consequences to you and us, including:

    ●
    we may have difficulty satisfying our obligations with respect to our outstanding notes and debt obligations;

    ●
    we may have difficulty obtaining financing in the future for working capital, capital expenditures, acquisitions or other purposes;

    ●
    we will need to use a substantial portion of our available cash flow to pay interest and principal on our debt (including our currently outstanding notes and the additional notes offered hereby), which will reduce the amount of money available to finance our operations and other business activities;

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

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