Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 260

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 4
Chunk 260
---
 and other factors that are beyond our control. We cannot assure you that our business when or if
our operations will ultimately generate sufficient cash flow from operations, that currently anticipated cost savings and operating improvements
will be realized on schedule or that future borrowings or another source of liquidity will be available to us in an amount sufficient
to enable us to pay our obligations, or to fund our other liquidity needs. If our cash flows and capital resources are insufficient to
fund our debt service obligations, or we are unable to identify and execute on another source of outside liquidity, we may be forced
to reduce or delay capital expenditures, sell material assets or operations, attempt to obtain additional equity capital or refinance
all or a portion of our indebtedness, including the 2023 Convertible Note, on or before maturity. In the absence of such operating results
and resources, we could face substantial cash flow problems and might be required to sell material assets or operations to meet our debt
service and other obligations. We cannot assure you as to the timing of such asset sales or the proceeds which we could realize from
such sales and we cannot assure you that we will be able to refinance any of our indebtedness, including amounts owed under the securities
purchase agreement entered into in May 2023, on commercially reasonable terms or at all.

Because
there are outstanding notes, obligations and warrants convertible into a significant number of shares of our common stock, holders of
our common stock could be subject to significant dilution.

We
have funded various of our operations through convertible debt obligations. From time to time we have also issued a number of shares
and warrants to acquire services and assets from third parties. To the extent that our debt obligations are satisfied by way of conversions
and we issue additional shares of our common stock to satisfy obligations or in consideration for assets or services these issuances
would have a dilutive effect on our existing stockholders.

Because
of alternate conversion price notices from our principal noteholder, there may be significant dilution.

Between
March 4, 2024 and March 8, 2024, our principal noteholder sent Alternate Conversion Notices to the Company to convert the principal value
and accrued and unpaid interest under its Note with the Company into shares of Company common stock pursuant to the Alternate Conversion
Price mechanism in the Note. The Company is currently evaluating the situation and working with the noteholder to arrive at an equitable
resolution. If not resolved, an issuance of shares could result in significant dil