Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 85

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 85
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 not the obligation to require White Lion to purchase, from time to time,
up to $75.0 million in aggregate gross purchase price of Equity Line Shares, we are not required or permitted to issue any shares of
our common stock under the Common Stock Purchase Agreement if such sale would result in White Lion owning more than 9.99% of our outstanding
shares of common stock.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed
price “Purchase Notice” under the Common Stock Purchase Agreement at $7.00 per share if the market price for the Common Stock
exceeds $9.00 per share. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock under
the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.

As
an emerging growth company, we are dependent on outside capital in order to advance our research and development programs, operate our
business, and meet our future obligations as they come due. Our current operating plan indicates that we will incur losses from operations
and generate negative cash flows from operating activities, given anticipated expenditures related to research and development activities
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.

We
will seek additional funding through private equity financings, debt financings, collaborations, strategic alliances, 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.

43

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. The timing and