Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 55

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 55
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 development programs, operate its business, and 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 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.

    8

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 condensed 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 adversely 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 unaudited condensed 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 Codification (“ASC