Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 102

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 102
---
 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, financial, competitive, legislative, and regulatory factors as well
as other factors that are beyond our control. There can be no assurance that our business will generate cash flow from operations, or
that additional capital will be available to us, in amounts sufficient to enable us to meet our debt payment obligations and to fund
other liquidity needs. Additionally, events and circumstances may occur which would cause us to not be able to satisfy applicable draw-down
conditions and utilize additional funds under the securities purchase agreement entered into in May 2023. If we are unable to generate
sufficient cash flows, or the value of our common stock is insufficient to facilitate conversions of debt obligations as may be necessary
to service