Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1493

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 10
Chunk 1493
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 meet
its current and future obligations as they come due. Based on the Company’s current operational plans and assumptions, which may
not be realized, the Company expects to use the net proceeds from the Backstop Agreement (as defined in Note 3, Business Combination
and Backstop Agreement) and future debt and equity financings, including possibly under the Common Stock Purchase Agreement (as defined
in Note 3, Business Combination and Backstop Agreement) and the SPA entered into in May 2023 (as defined in Note 7, Senior
Secured Convertible Notes) as well as further deferrals of certain of its accrued expenses and contingency payments due upon the
closing of future financings to fund operations. However, the Company’s ability to utilize certain of its in-place financing arrangements,
such as the Backstop Agreement, or execute on new sources of liquidity are dependent on various factors outside of the Company’s
control, including market conditions and the performance of the Company’s common stock.

There
is no assurance that the Company will be successful in obtaining additional financing on terms acceptable to the Company, if at all,
and the Company may not be able to enter into collaborations or other arrangements. If the Company is unable to obtain funding, the Company
could be forced to delay, reduce, or eliminate its research and development programs, which could adversely affect its business prospects
and its ability to continue operations.

The
accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

Impacts
of Market Conditions on Our Business

Disruption
of global financial markets and a recession or market correction, including the ongoing military conflict between Russia and Ukraine
and the related sanctions imposed against Russia, the effects of Hamas’ attack of Israel and the ensuing war, and other global
macroeconomic factors such as inflation and rising interest rates, could reduce the Company’s ability to access capital, which
could in the future negatively affect the Company’s liquidity and could materially affect the Company’s business and the
value of its common stock.

2.
Basis of Presentation and Summary of Significant Accounting Policies

Basis
of Presentation

The
accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP and stated in U.S. dollars. Any
reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as found in the Accounting
Standards Cod