Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 133

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 133
---
 management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the
carrying value of assets and liabilities and recorded amounts of expenses that are not readily apparent from other sources and adjusts
those estimates and assumptions when facts and circumstances dictate.

The Company’s results can
also be affected by economic, political, legislative, regulatory or legal actions. Economic conditions, such as recessionary trends, inflation,
interest rates, changes in regulatory laws and monetary exchange rates, and government fiscal policies, can have a significant effect
on operations. The Company could also be affected by civil, criminal, regulatory or administrative actions, claims, or proceedings.

Cash and Cash Equivalents

The Company considers all highly
liquid investments with original maturities at the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents
are stated at fair value and may include money market funds, U.S. Treasury and U.S. government-sponsored agency securities, corporate
debt, commercial paper, and certificates of deposit. The Company had no cash or cash equivalents as of March 31, 2025 and December
31, 2024.

Restricted Cash

The Company’s restricted
cash is comprised of cash that is restricted as to withdrawal or use. Restricted cash as of March 31, 2025 and December 31,2024 was $0.8
million and $0.2 million, respectively, consisting of the portion of proceeds received from the 2024 Convertible Note, as defined in Note
7, Senior Secured Convertible Notes, that is being held in an escrow account.

Concentrations of Credit Risk, Off-balance Sheet
Risk and Other Risks

The Company has held minimal
cash since its inception and certain of its expenses have been primarily paid for by the proceeds from the issuance of common stock and
debt.

The Company has no significant
off-balance sheet arrangements, as defined in the rules and regulations of the SEC. The Company’s future results of operations involve
several other risks and uncertainties. Factors that affect the Company’s future operating results and cause actual results to vary
materially from expectations could include, but are not limited to, uncertainty of results of clinical trials and reaching milestones,
uncertainty of regulatory approval of the Company’s product candidates, uncertainty of market acceptance of the Company’s
product candidates, competition from other products, securing and protecting intellectual property, strategic relationships and dependence
on key employees and research partners.