Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 238

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 238
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 December 31, 2023, in our Annual Report on Form 10-K for the year ended December, 31, 2023.

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, 2023, 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 September 30, 2024, we had $15.6 million in principal of indebtedness outstanding, including $9.7 million in principal amount of a
convertible promissory note issued in July 2023. 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;

    ●
    certain of our debt obligations
    are secured by Company assets, and upon a default, of which there are several in existence as a result of the restatements discussed
    elsewhere in this Form 10-Q and failure to timely file this Form 10-Q, a lender may be able to seek to seize, control or otherwise
    monetize those assets to satisfy our debt obligations;

    ●
    our leverage could place
    us at a competitive disadvantage compared to our competitors that have