Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 8

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 8
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of products for several years, if at all. We had no cash inflows from operating activities for the three months ended March 31, 2025.
Further, as of March 31, 2025, we had no cash and a working capital deficiency of $23.1 million.

To date, we have funded our operations
from the proceeds from the issuance of common stock and debt, proceeds from the Backstop Agreement and through self-funding by our founder
and have limited current cash on hand to fund our operations. Based on our current operational plans and assumptions, we expect that the
net proceeds from the Backstop Agreement, the Ayrton Convertible Note Financing and future debt and equity financings, as well as further
deferrals of certain of our accrued expenses and contingency payments due upon the closing of future financings, are required to fund
operations into the third quarter of 2025. As of March 31, 2025, we received $1.4 million in cumulative proceeds from the Backstop Agreement.

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We borrowed $3.7 million in the
second half of 2024 and $1.0 million in the first quarter of 2025 from additional tranches under the Ayrton Convertible Note Financing,
the proceeds of which were used to fund working capital requirements. As of March 31, 2025, the principal of our remaining short-term
loans outstanding was $10.1 million.

As an emerging growth company,
we are dependent on outside capital in order to advance our research and development programs, operate our business, and meet our future
obligations as they come due. Our current operating plan indicates that we will incur losses from operations and generate negative cash
flows from operating activities, given anticipated expenditures related to research and development activities we lack revenue generating
ability at this point in our lifecycle. These events and conditions raise substantial doubt about our ability to continue as a going concern.

We will seek additional funding
through private equity financings, debt financings, collaborations, strategic alliances, marketing, distribution, or licensing arrangements.
There is no assurance that we will be successful in obtaining additional financing on terms acceptable to us, if at all, and we may not
be able to enter into collaborations or other arrangements. If we are unable to obtain funding, we could be forced to delay, reduce, or
eliminate our research and development programs, which could adversely affect our business prospects and our ability to continue operations.

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Funding Requirements