Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3468

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3468
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 to the subsidiary in which they are invested. Any such disputes
or disagreements could distract our management, interfere with our relations with our partners, and take significant time to resolve,
which could disrupt the development of our product candidates, delay our potential commercialization efforts, result in increased costs
or make it less likely that other third parties will choose to partner with us in the future.

We
currently outsource, and intend to continue to outsource, nearly all our discovery, clinical development, and manufacturing functions
to third-party providers or consultants. Outsourcing these functions has significant risks, and our failure to manage these risks successfully
could materially adversely affect our business, results of operations, and financial condition.

Our
business model relies upon the use of third parties, such as vendors and consultants, to conduct our drug discovery, preclinical testing,
clinical trials, manufacturing, and all other aspects of clinical development. While our reliance on third parties allows us to purposely
employ a small number of full-time employees, we may not effectively manage and oversee the third parties that our business depends upon
and we have less control over our operations due to our reliance on third parties. While we believe our business model significantly
reduces overhead cost, we may not realize the efficiencies of this arrangement if we are unable to effectively manage third parties or
if our limited number of employees are unable to manage the operations of each of our subsidiaries, including the development of their
programs and product candidates. The failure to successfully and efficiently outsource operational functions or appropriately manage
the operations of our subsidiaries could materially adversely affect our business, results of operations, and financial condition.

Risks
Related to Raising Additional Capital

We
will require substantial additional capital to finance our operations. If we are unable to raise such capital when needed, or on acceptable
terms, we may be forced to delay, reduce and/or eliminate one or more of our research and drug development programs, future commercialization
efforts and/or other operations.

Developing
biopharmaceutical products, including conducting preclinical studies and clinical trials, is a very time-consuming, expensive and uncertain
process that takes years to complete. Our operations have consumed substantial amounts of cash since inception. We have sufficient committed
sources of additional capital to fund our operations for more than a limited period of time. We expect our expenses to increase in connection
with our ongoing activities, particularly as we advance our preclinical and clinical development programs, seek regulatory approvals
for our product candidates, and launch and commercialize any