Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 77

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 77
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    day following the Closing, we paid the Prepayment of $51.6 million to the Backstop Parties utilizing funds from AHAC’s trust
    account, pursuant to the terms of the Backstop Agreement, as discussed below. The total Prepayment includes $37.3 million from the
    purchase of the Recycled Shares and $14.3 million from the purchase of the Share Consideration Shares. As the $14.3 million was a
    netted transaction between us and Polar, only $37.3 million was actually paid out of the funds received from the trust account.

    ●
    Each share of AHAC’s
    Class A common stock was automatically reclassified into one share of the Company’s common stock, including the remaining shares
    of AHAC Class A common stock that were not redeemed.

The
Business Combination is accounted for as a reverse capitalization in accordance with U.S. GAAP. Under the guidance in ASC 805, Business
Combinations, AHAC is treated as the “acquired” company for financial reporting purposes. See Note 3, Business Combination
and Backstop Agreement, of our condensed consolidated financial statements included elsewhere in this Report for additional detail
about the Business Combination and related transactions. The Liquidity and Capital Resources section below also includes further
discussion of these transactions.

As
a result of becoming a public company, we have begun, and will continue to need to hire additional staff and implement processes and
procedures to address public company regulatory requirements and customary practices. We incurred and expect to continue to incur additional
annual expenses for, among other things, directors’ and officers’ liability insurance, director fees and additional internal
and external accounting, legal and administrative resources and fees.

Components
of Our Results of Operations

Revenue

To
date, we have not generated any revenue from any sources, including from product sales, and we do not expect to generate any revenue
from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result
in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales. However,
there can be no assurance as to when we will generate such revenue, if at all.

38

Operating
Expenses

Research
and Development Expenses

To
date, research and development expenses consist, or will consist, primarily of costs incurred for our research activities, including
the development of our product candidates, as well as stock-based compensation. We