Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 567

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 567
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 outcome of this uncertainty.

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. We intend to raise additional capital through one or more means, including public offerings pursuant to Form S-1, among others.
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; and

    ●
    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
anticipate that 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.

154

Contingent
Compensation and Other Contingent Payments

Under
the management employment agreements, we have salaries and bonuses that are contingently payable upon financing, collectively called
contingent compensation, that are contingently payable based only upon our first cumulative capital raise of at least $50 million. As
of December 31, 2024, we have contingent compensation and bonuses in the amount of $16.2 million to certain members of senior