Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 112

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 112
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 cash equivalents.
Cash and cash equivalents are stated at fair value and may include money market funds, U.S. Treasury and U.S. government-sponsored agency
securities, corporate debt, commercial paper, and certificates of deposit. The Company had minimal cash as of September
30, 2024 and December 31, 2023.

Restricted
Cash

The
Company’s restricted cash is comprised of cash that is restricted as to withdrawal or use. Restricted cash as of September 30,
2024 and December 31, 2023 was $0.2 million and $1.0 million, respectively, consisting of the portion of proceeds received from the 2023
Convertible Note, as defined in Note 7, Senior Secured Convertible Notes, that is being held in an escrow account.

Concentrations
of Credit Risk, Off-balance Sheet Risk and Other Risks

The
Company has held minimal cash since its inception and certain of its expenses have been primarily paid for by the proceeds from the issuance
of common stock and debt.

The
Company has no significant off-balance sheet arrangements, as defined in the rules and regulations of the SEC. The Company’s future
results of operations involve several other risks and uncertainties. Factors that affect the Company’s future operating results
and cause actual results to vary materially from expectations could include, but are not limited to, uncertainty of results of clinical
trials and reaching milestones, uncertainty of regulatory approval of the Company’s product candidates, uncertainty of market acceptance
of the Company’s product candidates, competition from other products, securing and protecting intellectual property, strategic
relationships and dependence on key employees and research partners. The Company’s product candidates require Food and Drug Administration
(“FDA”) and other non-U.S. regulatory agencies approval prior to commercial sales. There can be no assurance that any product
candidates will receive the necessary approvals. If the Company were denied approval, if approval were delayed, or if approval were unable
to be maintained, it could have a materially adverse impact on the Company.

Revenue

The
Company has not generated any revenue from any sources since its inception, including from product sales. The Company does not expect
to generate any revenue from the sale of products in the foreseeable future. If the Company’s development efforts for its product
candidates are successful and result in regulatory approval, or license agreements with third parties, the Company may generate revenue
in the future from product sales. However, there can be no assurance as to when revenue will be