Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2733

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2733
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 the warrants will decrease.

Going
Concern Considerations

The
accompanying consolidated financial statements are prepared in accordance with U.S. GAAP applicable to a going concern, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business.

153

We
had no cash inflows from operating activities for the fiscal year ended December 31, 2024. As of December 31, 2024 we had minimal cash
and a working capital deficiency of $33.1 million. Our current operating plan indicates we will incur losses from operations and generate
negative cash flows from operating activities, given anticipated expenditures related to research and development activities and we lack
revenue generating ability at this point in our lifecycle. These events and conditions raise substantial doubt about our ability to continue
as a going concern within one year after the date the financial statements are issued.

We
will need to raise additional funds in order to advance our research and development programs, operate our business, and meet our future
obligations as they come due, as described above under “Liquidity and Capital Resources.” We will seek additional funding
through private equity financings, debt financings, collaborations, strategic alliances, or marketing, distribution, or licensing arrangements.
There is no assurance that we will be successful in obtaining additional financing on terms acceptable to us, if at all, and we may not
be able to enter into collaborations or other arrangements. If we are unable to obtain funding, we could be forced to delay, reduce,
or eliminate our research and development programs, which could adversely affect our business prospects and our 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.

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;