Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1492

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 10
Chunk 1492
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 reporting purposes and Legacy Ocean is treated as the accounting acquirer. The net assets of AHAC are stated at
historical cost, with no goodwill or other intangible assets recorded. All historical financial information presented in the consolidated financial statements represents Legacy Ocean and its wholly owned subsidiaries as Legacy Ocean is the predecessor to the
Company. The wholly owned subsidiaries include: (i) Ocean ChitofibroRx Inc., (ii) Ocean ChitoRx Inc., (iii) Ocean Sihoma Inc., and (iv)
Ocean Promise, Inc. The Business Combination is accounted for as the equivalent of a capital transaction in which the Company has issued
stock for the net assets of AHAC.

The
Company’s common stock and warrants commenced trading on the Nasdaq Stock Market LLC under the symbols “OCEA” and “OCEAW,”
respectively, on February 15, 2023. Refer to Note 3, Business Combination and Backstop Agreement, for additional details.

The
Company is subject to risks common to companies in the biopharmaceutical industry, including, but not limited to, risks related to the
successful development and commercialization of product candidates, fluctuations in operating results and financial risks, the ability
to successfully raise additional funds when needed, protection of proprietary rights and patent risks, patent litigation, compliance
with government regulations, dependence on key personnel and prospective collaborative partners, and competition from competing products
in the marketplace.

Going
Concern

The
accompanying consolidated financial statements are prepared in accordance with U.S. GAAP applicable to a going concern, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business.

The
Company had no cash inflows from operating activities for the year ended December 31, 2024. As of December 31, 2024, the Company had
minimal cash, restricted cash of $0.2 million and a working capital deficiency of $33.1 million. The Company’s current operating
plan indicates it will incur losses from operations and generate negative cash flows from operating activities, given anticipated expenditures
related to research and development activities and its lack of revenue generating activity at this point in the Company’s lifecycle.
These events and conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year
after the date the financial statements are issued.

    F-8

The
Company will need to raise additional funds in order to advance its research and development programs, operate its business, and