Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 28

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 3
Chunk 28
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 savings and operating improvements will be realized on
schedule or that future borrowings or another source of liquidity will be available to us u in an amount sufficient to enable us to pay
our obligations, or to fund our other liquidity needs. If our cash flows and capital resources are insufficient to fund our debt service
obligations, or we are unable to identify and execute on another source of outside liquidity, we may be forced to reduce or delay capital
expenditures, sell material assets or operations, attempt to obtain additional equity capital or refinance all or a portion of our indebtedness,
including the 2023 Convertible Note, on or before maturity. In the absence of such operating results and resources, we could face substantial
cash flow problems and might be required to sell material assets or operations to meet our debt service and other obligations. We cannot
assure you as to the timing of such asset sales or the proceeds which we could realize from such sales and we cannot assure you that we
will be able to refinance any of our indebtedness, including amounts owed under the securities purchase agreement entered into in May
2023 and amended and restated in July 2024, on commercially reasonable terms or at all.

Because there are outstanding
notes, obligations and warrants convertible into a significant number of shares of our common stock, holders of our common stock could
be subject to significant dilution.

We have funded various of our
operations through convertible debt obligations. From time to time we have also issued a number of shares and warrants to acquire services
and assets from third parties. To the extent that our debt obligations are satisfied by way of conversions, and we issue additional shares
of our common stock to satisfy obligations or in consideration for assets or services these issuances would have a dilutive effect on
our existing stockholders.

50

Item 2. Unregistered Sales
of Equity Securities and Use of Proceeds

Unregistered Sales of Equity
Securities

Set forth below is information
regarding equity securities issued by us during the period covered by this Report that were not registered under the Securities Act. No
underwriters were involved in the sales and the certificates (or book entry notations) representing the securities sold and issued contain
legends restricting transfer of the securities without registration under the Securities Act or an applicable exemption from registration.

Issuances of Capital Stock

In connection with the
amendment and restatement of the Ayrton Convertible Note Financing, dated July 15, 2024, in