Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 83

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 83
---

Consideration and Backstop Put Option Liability, (ii) $0.2 million expense related to the change in fair value of the Virion contribution
liability and certain charges incurred in the prior year period which are not recurring in the nine months ended September 30, 2024,
such as (i) $13.6 million related to loss on extinguishment of debt, (ii) $12.7 million related to the share consideration shares issued
during the nine months ended September 30, 2023, (iii) $1.9 million related to the issuance of warrants, (iv) $8.0 million in transaction
costs, and (v) $2.2 million related to non-cash stock issuances. These decreases were partially offset by (i) $1.8 million related
to the loss on exchange of notes; and(ii) $3.3 million related to our share of the net loss generated by Virion.

Liquidity
and Capital Resources

Overview

Since
our inception, we have incurred significant operating losses. We have not yet commercialized any products and we do not expect to generate
revenue from sales of products for several years, if at all. We had no cash inflows from operating activities for the nine months ended
September 30, 2024. Further, as of September 30, 2024, we had minimal cash and a working capital deficiency of $32.6 million.

To
date, we have funded our operations from the proceeds from the issuance of common stock and debt, proceeds from the Backstop Agreement
and through self-funding by our founder and have limited current cash on hand to fund our operations. Based on our current operational
plans and assumptions, we expect that the net proceeds from the Backstop Agreement, the Ayrton Convertible Note Financing and future
debt and equity financings, including possibly under the Common Stock Purchase Agreement, as well as further deferrals of certain of
our accrued expenses and contingency payments due upon the closing of future financings, are required to fund operations into the third
quarter of 2024. As of September 30, 2024 we received $1.4 million in cumulative proceeds from the Backstop Agreement.

42

We
borrowed $13.5 million in the first half of 2023, including the proceeds from the initial Note under the Ayrton Convertible Note
Financing, the proceeds of which were used to