Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 186

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 186
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 all, and we may not be able to enter into collaborations or other arrangements. If we are unable to obtain funding, we could
be forced to delay, reduce, or eliminate our research and development programs, which could adversely affect our business prospects and
our ability to continue operations.

43

Funding
Requirements

We
expect our expenses to increase substantially in connection with our ongoing activities, particularly as we advance the preclinical activities
and clinical trials of our product candidates. In addition, we will incur additional ongoing costs associated with operating as a public
company, including significant legal, accounting, compliance, investor relations and other expenses that we did not incur as a private
company. The timing and amount of our operating expenditures will depend on our ability to:

    ●
    advance preclinical development
    of our early-stage programs;

    ●
    manufacture, or have manufactured
    on our behalf, our preclinical and clinical drug material and develop processes for late state and commercial manufacturing;

    ●
    Obtain regulatory approvals
    for any product candidates that successfully complete clinical trials;

    ●
    establish a sales, marketing
    and distribution infrastructure to commercialize our product candidates for which we may obtain marketing approval and intend to
    commercialize on our own;

    ●
    hire additional clinical,
    quality control and scientific personnel;

    ●
    expand our operational,
    financial and management systems and increase personnel, including personnel to support our research and clinical development, manufacturing
    and commercialization efforts and our operations as a public company; and 

    ●
    obtain, maintain, expand
    and protect our intellectual property portfolio.

We
will require additional capital as we seek regulatory approval of our product candidates and if we choose to pursue in-licenses or acquisitions
of other product candidates. If we receive regulatory approval for our product candidates, we expect to incur significant commercialization
expenses related to product manufacturing, sales, marketing and distribution, depending on where we choose to commercialize. Because
of the numerous risks and uncertainties associated with research, development and commercialization of biologic product candidates, we
are unable to estimate the exact amount of our working capital needs.

Backstop
Agreement

As
discussed above, prior to Closing, on February 12, 2023, AHAC, Legacy Ocean and Vellar entered into an amended and restated OTC Equity
Prepaid Forward Transaction, referred to herein as the Backstop Agreement. Concurrently, on February 13, 2023