Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 202

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 202
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 of indebtedness outstanding, including $9.7 million in principal amount of a
convertible promissory note issued in July 2023. We have very limited cash resources from which to repay any obligations that a lender
requires to be paid in cash. Our level of indebtedness could have important negative consequences to you and us, including:

    ●
    we may have difficulty
    satisfying our obligations with respect to our outstanding notes and debt obligations;

    ●
    we may have difficulty
    obtaining financing in the future for working capital, capital expenditures, acquisitions or other purposes;

    ●
    we will need to use a substantial
    portion of our available cash flow to pay interest and principal on our debt (including our currently outstanding notes and the additional
    notes offered hereby), which will reduce the amount of money available to finance our operations and other business activities;

    ●
    our debt level increases
    our vulnerability to general economic downturns and adverse industry conditions;

    ●
    our debt level could limit
    our flexibility in planning for, or reacting to, changes in our business and in our industry in general;

    ●
    certain of our debt obligations
    are secured by Company assets, and upon a default, of which there are several in existence as a result of the restatements discussed
    elsewhere in this Form 10-Q and failure to timely file this Form 10-Q, a lender may be able to seek to seize, control or otherwise
    monetize those assets to satisfy our debt obligations;

    ●
    our leverage could place
    us at a competitive disadvantage compared to our competitors that have less debt; and

    ●
    our failure to comply with
    the financial and other restrictive covenants in our debt instruments which, among other things, may require us to maintain specified
    financial ratios and will limit our ability to incur debt and sell assets, could result in an event of default that, if not cured
    or waived, could have a material adverse effect on our business or prospects.

Our
ability to meet our payment obligations under our debt instruments depends on our ability to generate significant cash flows or obtain
external financing in the future. And, in certain cases our debt obligations may be satisfied by way of a conversion into our common
stock, and therefore, our ability to satisfy certain debt obligations is dependent, in part, on the performance of our common stock.
In each case, to some extent this is subject to market, economic