Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 26

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 3
Chunk 26
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 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 March 31, 2025, we had
$10.5 million in principal of indebtedness outstanding, including $5.2 million in principal amount of a convertible promissory note issued
in 2024 and the first quarter of 2025. 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 less debt; and

    ●
    our failure to comply with the financial and other restrictive covenants in our debt instruments which, among other things, may require us to maintain specified financial ratios and will limit our ability to incur debt and sell assets, could result in an event of default that, if not cured or waived, could have a material adverse effect on our business or prospects.

Our ability to meet our payment
obligations under our debt instruments depends on our ability to generate significant cash flows or obtain external financing in the future.
And, in certain cases our debt obligations may be satisfied by way of a conversion into our common stock, and therefore, our ability