Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 86

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 86
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 amount of our operating expenditures will depend on our ability to:

    ●
    advance preclinical development
    of our early-stage programs;

    ●
    manufacture, or have manufactured
    on our behalf, our preclinical and clinical drug material and develop processes for late state and commercial manufacturing;

    ●
    Obtain regulatory approvals
    for any product candidates that successfully complete clinical trials;

    ●
    establish a sales, marketing
    and distribution infrastructure to commercialize our product candidates for which we may obtain marketing approval and intend to
    commercialize on our own;

    ●
    hire additional clinical,
    quality control and scientific personnel;

    ●
    expand our operational,
    financial and management systems and increase personnel, including personnel to support our research and clinical development, manufacturing
    and commercialization efforts and our operations as a public company; and 

    ●
    obtain, maintain, expand
    and protect our intellectual property portfolio.

We
will require additional capital as we seek regulatory approval of our product candidates and if we choose to pursue in-licenses or acquisitions
of other product candidates. If we receive regulatory approval for our product candidates, we expect to incur significant commercialization
expenses related to product manufacturing, sales, marketing and distribution, depending on where we choose to commercialize. Because
of the numerous risks and uncertainties associated with research, development and commercialization of biologic product candidates, we
are unable to estimate the exact amount of our working capital needs.

Backstop
Agreement

As
discussed above, prior to Closing, on February 12, 2023, AHAC, Legacy Ocean and Vellar entered into an amended and restated OTC Equity
Prepaid Forward Transaction, referred to herein as the Backstop Agreement. Concurrently, on February 13, 2023, AHAC, Vellar and Legacy
Ocean entered into separate assignment and novation agreements (as amended as it relates to Polar on October 2, 2023), whereby Vellar
assigned its rights and obligations to a portion of the shares of Class A common stock subject to the Backstop Agreement to Meteora and
Polar. Further, the Backstop Agreement granted the Backstop Parties the right to purchase Additional Shares from us of up to an amount
equal to the difference between the number of Recycled Shares and the maximum number of shares of 8,000,000.

On
February 14, 2023, pursuant to the Backstop Agreement, (i) the