Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 2

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 2
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ization. Although our company has not yet developed or commercialized any biopharmaceutical products, key members of our management team have experience doing so in previous endeavors.

We believe our differentiated
business model will enable us to commercialize our products, if approved, and will allow us to replicate our licensing partnerships through
aligned incentive structures with research universities and medical centers.

Our pipeline consists of clinical-stage
programs. We anticipate moving certain preclinical product candidates in our oncology, fibrosis and/or infectious disease programs into
the clinic in the next 12 to 24 months.

Since Legacy Ocean’s inception
in 2019, we have devoted substantially all of our efforts to organizing, research and development activities, business planning, building
our intellectual property positions and providing general and administrative support for these operations. We have not generated any revenue
from product sales.

We have incurred significant
operating losses since inception. Our ability to generate product revenues sufficient to achieve profitability will depend heavily upon
the successful development and eventual commercialization of one or more of our current products or any future products. Our net losses
were $8.2 million for the three months ended March 31, 2025. We reflected net income of $13.0 million for the three months ended March
31, 2024, primarily due to a gain recognized in connection with the Backstop Put Option Liability and Fixed Maturity Consideration. As
of March 31, 2025 and December 31, 2024, we had a stockholders’ deficit of $92.4 million and $97.6 million, respectively. Our current
liabilities are $26.6 million and $33.9 million as of March 31, 2025 and December 31, 2024, respectively. Our current liabilities consisted
of accrued expenses including transaction costs, accounting and legal fees, accrued research and development costs, and short-term loans.
We expect that our expense and capital requirements will increase substantially in connection with ongoing activities to commercialize
our products in the future.

36

We expect to continue to generate
operating losses for the foreseeable future. Our future viability is dependent on the success of our research and development and our
ability to access additional capital to fund our operations. There can be no assurance that our current operating plan will be achieved
or that additional funding will be available on terms acceptable to us, or at all.

We are subject to risks and uncertainties
common to early-stage companies in the biotechnology industry including