美國
證券 交易委員會
華盛頓, D.C. 20549
表格
(標記 一個)
| 季度 報告根據1934年證券交易法第13或15(d)節 |
截至
季度期間
或
| 過渡 根據1934年證券交易法第13條或15條（d）報告 |
對於從_______到的過渡期 _______
委員會
文件號碼：
(註冊人的確切名稱，如章程所示)
註冊人的
電話號碼，包括區號：
根據該法第12(b)條註冊的證券:
| 每類的標題 | 交易符號 | 每個註冊的交易所名稱 | ||
| 本 股票市場 有限責任公司 | ||||
| 本 股票市場 有限責任公司 |
請通過勾選的方式表明註冊人是否在過去12個月內（或註冊人被要求提交此類報告的較短期間內）已根據1934年證券交易法第13節或15(d)節提交所有要求提交的報告，並且在過去90天內是否一直受到此類提交要求的約束。
請用勾選標誌指明註冊人是否在過去12個月（或註冊人被要求提交此類文件的較短期間內）電子提交了根據規則405的要求提交的每個互動數據文件。
在勾選標記處表示註冊人是大型加速提交人、加速提交人、非加速提交人、小型報告公司還是新興增長公司。請參閱證券交易法120億條規則中「大型加速提交人」、「加速提交人」、「小型報告公司」和「新興增長公司」的定義。
| 大型加速報告人 | ☐ | 加速報告人 | ☐ |
| ☒ | 小型報告公司 | ||
| 新興成長公司 |
如果是新興成長公司，請勾選，如果註冊人已選擇不使用根據交易所法案第13(a)條提供的任何新的或修改的財務會計準則的延長過渡期，請勾選。
請勾選適用的圓圈，表示註冊登記者是否是空殼公司(根據交易所法案第12b-2條的定義)。是 ☐ 否
截至2025年1月13日，註冊人擁有 流通在外的普通股股份，截至2024年12月30日，存在 普通股已發行的股份數。
目錄
| 關於前瞻性聲明的特別說明 | 3 | |
| 部分 I. | 財務信息 | 4 |
| 項目 1. | 基本報表（未經審計） | 4 |
| 簡明合併資產負債表 | 4 | |
| 濃縮合並經營報表 | 5 | |
| 合併股東赤字基本報表 | 6 | |
| 簡明合併現金流量表 | 7 | |
| 簡明聯合財務報表附註(未經審計) | 8 | |
| 項目2. | 管理層對控制項和經營結果的討論與分析 | 35 |
| 條目 3. | 關於市場風險的定量和定性披露 | 50 |
| 條目 4. | 控制和程序 | 50 |
| 部分 II. | 其他信息 | 52 |
| 項目 1. | 法律訴訟 | 52 |
| 項目 1A. | Risk Factors | 52 |
| 項目 2. | 未註冊的股票證券銷售及收益使用 | 53 |
| 第6項。 | 展覽品 | 54 |
| 簽名 | 55 | |
| 2 |
特別 關於前瞻性陳述的說明
本 季度報告（表格10-Q）（此「報告」）包括標題爲“管理層討論與分析財務狀況及運營結果，包含根據1995年《私人證券訴訟改革法案》第27A條（修訂版）及1933年《證券法》（「證券法」）和1934年《證券交易法》（「交易所法」）第21E條（修訂版）之定義的前瞻性聲明，並且這些聲明是根據其中包含的安全港條款做出的。這些前瞻性聲明涉及當前的預期和策略、未來的運營、未來的財務狀況、未來的營業收入、預計的成本、前景、當前計劃、管理層的當前目標和預期的市場增長，並涉及已知和未知的風險、不確定性以及其他可能導致實際結果、活動水平、表現或成就與這些前瞻性聲明中所表達或暗示的預期、估計和預測有重大不同的因素，因此，您不應將這些前瞻性聲明視爲保證、擔保、預測或未來事件事實或可能性的確定性表述。此報告中包含的除了歷史事實聲明以外的所有聲明，包括關於我們未來營業成果和財務狀況、我們的業務策略和計劃以及我們未來運營目標的聲明，均爲前瞻性聲明。「可能」、「應該」、「能夠」、「預測」、「潛在」、「計劃」、「尋求」、「相信」、「可能導致」、「期望」、「繼續」、「將繼續」、「將」、「將會」、「預期」、「尋求」、「估計」、「打算」、「計劃」、「預測」、「會」、「前景」以及類似表示未來事件或結果的不確定性的詞彙或短語的變體，均旨在標識前瞻性聲明。缺乏此類詞彙並不意味着該聲明不是前瞻性。
您 不應依賴前瞻性聲明作爲未來事件的預測。我們在本報告中包含的前瞻性聲明主要基於我們對未來事件和趨勢的當前期望和預測，我們相信這些因素可能會影響我們的業務、 財務狀況和經營成果。這些前瞻性聲明所描述事件的結果受到風險、不確定性和其他因素的影響，包括本報告中“Risk Factors”及我們截至2023年12月31日的10-k年報中的標題“關於前瞻性聲明的警示說明”和“Risk Factors。” 然而，這些因素及我們不時向美國證券交易委員會（「SEC」）提交的定期和當前報告中描述的其他風險因素，不一定是所有可能導致我們實際結果、業績或成就與任何前瞻性聲明中的內容存在重大差異的重要因素。
此外， 我們在一個競爭非常激烈且快速變化的環境中運營。新的風險和不確定性不時出現， 我們無法預測所有可能影響本報告中前瞻性陳述的風險和不確定性。前瞻性陳述中反映的結果、事件和情況可能不會實現或發生， 實際結果、事件或情況可能與前瞻性陳述中描述的顯著不同。
此外，諸如「我們相信」和類似的陳述反映了我們對相關主題的信念和觀點。這些陳述是基於截至本報告日期我們所掌握的信息。雖然我們相信這些信息爲這些陳述提供了合理的依據，但這些信息可能有限或不完整。我們的陳述不應被理解爲我們已對所有相關信息進行了全面的調查或審查。 這些陳述本質上是不確定的，投資者被提醒不要過度依賴這些陳述。
本報告中所作的前瞻性聲明僅與聲明作出之日的事件相關。我們不承擔任何更新本報告中所作的前瞻性聲明的義務，除非法律要求，更新內容可能反映了本報告日期之後的事件或情況，或反映了新信息或不可預見事件的發生。我們可能實際上無法實現我們在前瞻性聲明中披露的計劃、意圖或預期，因此您不應對我們的前瞻性聲明抱有過度依賴。我們的前瞻性聲明並未考慮未來收購、合併、處置、合資或投資的潛在影響。
除非上下文另有要求，本報告中提到的「海洋生物醫藥公司」、「公司」、「我們」、「我們的」、「我們」或類似的引用，均指海洋生物醫藥公司及其子公司。
| 3 |
部分 一-財務信息
項目 1. 基本報表
海洋 生物醫藥公司
簡化版 合併資產負債表
(以千爲單位，除股份和每股數據外)
(未經審計)
九月三十日 2024 | 12月31日 2023 | |||||||
| 資產 | ||||||||
| 流動資產: | ||||||||
| 現金 | $ | $ | ||||||
| 受限制現金 | ||||||||
| 預付費用 | ||||||||
| 總流動資產 | ||||||||
| 對Virion的投資 | ||||||||
| 總資產 | $ | $ | ||||||
| 負債和股東赤字 | ||||||||
| 流動負債： | ||||||||
| 應付賬款和預提費用 | $ | $ | ||||||
| 應計費用 - 關聯方 | ||||||||
| 短期貸款，扣除發行成本後 | ||||||||
| SPA期權 | ||||||||
| 總流動負債 | ||||||||
| 非流動負債 | ||||||||
| 固定到期考慮 | ||||||||
| 後備看跌期權負債 | ||||||||
| 病毒貢獻負債 | ||||||||
| 總負債 | ||||||||
| 股東權益負債： | ||||||||
| 普通股，$ 面值； 截至2024年9月30日和2023年12月31日授權的股份， 和 截至2024年9月30日和2023年12月31日發行並流通的股份。 | ||||||||
| 額外實收資本 | ||||||||
| 累計虧損 | ( | ) | ( | ) | ||||
| 股東總虧損 | ( | ) | ( | ) | ||||
| 總負債和股東虧損 | $ | $ | ||||||
請參閱未審計的簡明合併基本報表的附帶說明
| 4 |
海洋 生物醫藥公司
合併 合併經營報表
(以 千爲單位，除每股數據外)
(未經審計)
截止三個月 九月三十日 | 截止九個月 九月三十日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 營業費用： | ||||||||||||||||
| 研究和開發 | $ | $ | $ | $ | ||||||||||||
| 一般管理費用 | ||||||||||||||||
| 總營業費用 | ||||||||||||||||
| 營業損失 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 其他收入（費用） | ||||||||||||||||
| 2023年可轉換債券、SPA認股權證和Ayrton票據購買期權的公允價值變動 | ( | ) | ( | ) | ( | ) | ||||||||||
| 與分享對價股份相關的損失 | ( | ) | ||||||||||||||
| 與看跌期權負債及固定到期考慮相關的收益（損失） | ( | ) | ( | ) | ( | ) | ||||||||||
| 認股權證發行的公允價值 | ( | ) | ||||||||||||||
| 非現金股票發行的公允價值 | ( | ) | ( | ) | ||||||||||||
| 交易成本 | ( | ) | ( | ) | ( | ) | ||||||||||
| 債務滅失損失 | ( | ) | ( | ) | ||||||||||||
| 票據交換損失 | ( | ) | ( | ) | ||||||||||||
| 利息費用，包括債務發行費用的攤銷 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 歸屬於Virion的淨損失 | ( | ) | ( | ) | ||||||||||||
| Virion貢獻負債公允價值變動 | ( | ) | ||||||||||||||
| 股票義務的公允價值 | ( | ) | ||||||||||||||
| 其他 | ( | ) | ( | ) | ||||||||||||
| 其他總收入（費用） | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| 淨損失 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| 加權平均流通股數，基本和攤薄 | ||||||||||||||||
| 每股淨虧損，基本和攤薄 | $ | ) | $ | ) | $ | ) | $ | ) | ||||||||
請參閱未審核的簡明合併基本報表的附錄說明，
| 5 |
海洋 生物醫藥公司
合併 股東缺口的合併報表
(單位：千)
(未經審計)
截至2024年9月30日的三個月
| 普通股 | 額外 實收資本 | 累計 | 總計 股東的 | |||||||||||||||||
| 股份 | 金額 | 資本 | 赤字 | 赤字 | ||||||||||||||||
| 截至2024年6月30日的餘額 | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
| 凈利潤 | ( | ) | ( | ) | ||||||||||||||||
| 基於股票的補償 | - | |||||||||||||||||||
| 截至2024年9月30日的餘額 | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
截至2023年9月30日的三個月
| 普通股 | 額外 實收資本 | 累計 | 總計 股東的 | |||||||||||||||||
| 股份 | 金額 | 資本 | 赤字 | 赤字 | ||||||||||||||||
| 截至2023年6月30日的餘額 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||
| 淨損失 | - | ( | ) | ( | ) | |||||||||||||||
| 基於股票的補償 | - | |||||||||||||||||||
| 與短期貸款相關的普通股發行 | ||||||||||||||||||||
| 截至2023年9月30日的餘額 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||
截至2024年9月30日的九個月
| 普通股 | 額外 實收資本 | 累計 | 總計 股東的 | |||||||||||||||||
| 股份 | 金額 | 資本 | 赤字 | 赤字 | ||||||||||||||||
| 截至2023年12月31日的餘額 | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
| 淨損失 | ( | ) | ( | ) | ||||||||||||||||
| 基於股票的補償 | - | |||||||||||||||||||
| 普通股發行 | ||||||||||||||||||||
| 發放給供應商的股份 | ||||||||||||||||||||
| 截至2024年9月30日的餘額 | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
截至2023年9月30日的九個月
| 普通股 | 額外 實收資本 | 累計 | 總計 股東的 | |||||||||||||||||
| 股份 | 金額 | 資本 | 赤字 | 赤字 | ||||||||||||||||
| 截至2022年12月31日的餘額 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||
| 逆向資本化的追溯適用 | ||||||||||||||||||||
| 調整後的餘額，期初 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||
| 淨損失 | - | ( | ) | ( | ) | |||||||||||||||
| 業務合併的影響，包括回補協議，扣除贖回的公衆股份 | ||||||||||||||||||||
| 後備協議預付款 | - | ( | ) | ( | ) | |||||||||||||||
| 來自後援協議的收益 | - | |||||||||||||||||||
| 根據認購協議發行普通股 | ||||||||||||||||||||
| 爲相關方延長貸款股份而發行普通股 | ||||||||||||||||||||
| 與短期貸款相關的普通股發行 | ||||||||||||||||||||
| 根據營銷服務協議發行的股份 | ||||||||||||||||||||
| 根據普通股購買協議發行的股份 | ||||||||||||||||||||
| 基於股票的補償 | - | |||||||||||||||||||
| 發行成本 | - | ( | ) | ( | ) | |||||||||||||||
| Warrants的發行 | - | |||||||||||||||||||
| 截至2023年9月30日的餘額 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||
請參閱未審計的簡明合併基本報表的附帶說明
| 6 |
海洋 生物醫藥公司
簡明 合併現金流量表
(單位：千)
(未經審計)
截至九個月 九月三十日 | ||||||||
| 2024 | 2023 | |||||||
| 經營活動產生的現金流 | ||||||||
| 淨損失 | $ | ( | ) | $ | ( | ) | ||
| 調整淨虧損與經營活動使用的現金的折算： | ||||||||
| 非現金利息費用 | ||||||||
| 非現金債務發行成本 | ||||||||
| 非現金股票發行 | ||||||||
| 基於股票的補償 | ||||||||
| 發行的Warrants的公允價值 | ||||||||
| 債務滅失損失 | ||||||||
| 票據交換損失 | ||||||||
| 與分享對價股份相關的損失 | ||||||||
| 與備兌看跌期權負債和固定到期考慮相關的損失 | ( | ) | ||||||
| 歸屬於Virion的淨損失 | ||||||||
| Virion貢獻負債的公允價值變動 | ( | ) | ||||||
| 2023年可轉換債券、SPA認股權證和Ayrton票據購買期權的公允價值變動 | ||||||||
| 超出業務合併收益的非現金交易費用 | ||||||||
| 資產和負債的變動: | ||||||||
| 預付費用 | ||||||||
| 應付賬款和預提費用 | ||||||||
| 應計費用 - 相關方 | ( | ) | ||||||
| 淨現金流出活動 | ( | ) | ( | ) | ||||
| 融資活動產生的現金流 | ||||||||
| 根據回購協議向後盾方付款 | ( | ) | ||||||
| 向支持方支付分享對價 | ( | ) | ||||||
| 根據回購協議和認購協議發行普通股 | ||||||||
| 來自後援協議的收益 | ||||||||
| 來自反向資本化的收益 | ||||||||
| 短期貸款收益，扣除發行成本 | ||||||||
| 短期貸款的還款 | ( | ) | ||||||
| 融資活動提供的淨現金 | ||||||||
| 現金和限制現金的總變化 | ( | ) | ||||||
| 期初的現金和限制現金 | ||||||||
| 期末現金和受限現金 | $ | $ | ||||||
| 非現金融資活動的補充披露： | ||||||||
| 尚未支付的發行費用 | $ | $ | ||||||
| 非現金股票發行 | $ | $ | ||||||
| 發行時的SPA Warrants負債 | $ | $ | ||||||
請參閱未經審計的簡明合併基本報表的附註。
| 7 |
海洋 生物醫藥公司及其子公司
註釋 對未經審計的簡明合併基本報表
1. 業務描述及持續經營考慮
在業務合併後，公司是一家生物製藥公司，專注於發現和開發腫瘤、纖維化以及傳染病的治療產品。
業務 合併協議
2023年2月14日，Aesther Healthcare Acquisition CORP.（「AHAC」）根據2022年8月31日簽署的最終協議以及2022年12月5日的修訂，對Ocean Biomedical Holdings, Inc.（「Legacy Ocean」）進行了收購（「業務合併協議」），參與方包括AHAC、AHAC Merger Sub Inc.（AHAC的全資子公司）、Aesther Healthcare Sponsor, LLC、Legacy Ocean及Dr. Chirinjeev Kathuria（「交割」）。交割時，AHAC Merger Sub Inc.與Legacy Ocean合併，Legacy Ocean作爲AHAC的全資子公司存續。AHAC將名稱從「Aesther Healthcare Acquisition CORP.」更改爲「Ocean Biomedical, Inc.」，在此稱爲「公司」。除非上下文另有要求，提到「AHAC」時指的是交割前的公司。
該 業務合併按照美國通用會計原則（「U.S. GAAP」）作爲反向資本化進行會計處理。在這種會計方法下，法律收購方AHAC被視爲財務報告目的上的「被收購」 公司，而Legacy Ocean被視爲會計收購方。AHAC的淨資產以歷史成本計列，未記錄商譽或其他無形資產。所有在壓縮合並基本報表中呈現的歷史財務信息代表Legacy Ocean及其全資子公司，因爲Legacy Ocean是公司的前身。全資子公司包括：(i) Ocean ChitofibroRx Inc.，(ii) Ocean ChitoRx Inc.，(iii) Ocean Sihoma Inc.，以及(iv) Ocean Promise, Inc. 該業務合併被視爲一種資本交易，公司的股權是爲AHAC的淨資產發行的。
這個 公司的普通股和認股權證開始在納斯達克股票市場有限責任公司上市，股票代碼爲 「OCEA」 和 「OCEAW」， 分別在 2023 年 2 月 15 日。請參閱註釋 3， 業務合併和支持協議，以獲取更多詳細信息。
本公司面臨生物製藥行業公司普遍存在的風險，包括但不限於成功開發和商業化產品候選者的風險、運營結果波動和財務風險、在需要時成功籌集額外資金的能力、知識產權的保護和專利風險、專利訴訟、遵守政府法規、依賴關鍵人員和潛在合作伙伴以及來自市場上競爭產品的競爭。
持續經營的考量
所附的簡明合併基本報表是根據適用於持續經營的美國通用會計準則編制的，這些準則考慮了資產的實現以及在正常業務過程中對負債的滿足。
根據截至2024年9月30日的九個月，公司沒有來自經營活動的現金流入。截至2024年9月30日，該公司僅有極少量現金，受限制現金爲$
公司將需要籌集額外的所有基金類型以推進其研發項目，運營其業務，並滿足其當前和未來的義務以按時到期。基於公司當前的運營計劃和假設，這些假設可能無法實現，公司預計將使用回購協議（在第3條中定義） 的淨收益 業務組合 和回購協議以及未來的債務和股權融資，包括可能在普通股購買協議（在第3條中定義） 業務合併和擔保協議以及在2023年5月簽署的SPA（在第7條中定義） 高級擔保可轉換票據以及在未來融資關閉時到期的某些應計費用和應急付款進一步延期，以資助運營。然而，公司利用某些現有融資安排的能力，如回購協議，或執行新的流動性來源，取決於一些超出公司控制的各種因素，包括市場條件和公司普通股的表現。
沒有保證公司能夠成功以公司可接受的條款獲得額外融資，甚至根本無法獲得， 公司可能無法進入合作或其他安排。如果公司無法獲得資金，可能會被迫推遲、減少或取消其研究和開發計劃， 這可能會對其業務前景和持續運營能力產生不利影響。
隨附的合併簡明基本報表不包括與記錄資產金額的可回收性和分類或可能因不確定性結果而導致的負債的金額和分類相關的任何調整。
市場狀況對我們業務的影響
全球金融市場的破壞以及經濟衰退或市場調整，包括俄羅斯與烏克蘭之間持續的軍事衝突以及對俄羅斯實施的相關制裁、哈馬斯對以色列的襲擊及隨後的戰爭，以及其他全球宏觀經濟因素如通貨膨脹和上升的利率期貨，可能會減少公司獲得資本的能力，這在未來可能會對公司的流動性產生負面影響，並可能對公司的業務和普通股的價值產生重大影響。
2. 財務報表的編制基礎及主要會計政策摘要
呈現基礎
伴隨的未經審計的簡明合併基本報表已根據美國通用會計原則（U.S. GAAP）編制，並以美元計價。本文中提到的任何適用指導均指的是美國通用會計原則的權威性文件，這些文件可在財務會計標準委員會（「FASB」）的會計標準編纂和會計標準更新中找到。根據這些規則和規定，某些通常包含在依據GAAP編制的年度基本報表中的信息和附註披露已被簡化或省略。在管理層看來，未經審計的簡明合併基本報表反映了爲公正陳述所需的所有調整，這些調整僅包括正常的週期性調整，從而確保所呈現期間的餘額和結果的合法性。公司的重大會計政策的描述已包含在截至2023年12月31日的公司經過審計的合併基本報表中。這些未經審計的簡明合併基本報表應與公司於2023年提交給美國證券交易委員會（SEC）的10-K年度報告中的合併基本報表和相關附註一起閱讀，該報告於2024年11月25日提交。
隨附的未經審計的簡明合併基本報表包括公司及其全資子公司的賬戶，在消除所有內部賬戶和交易後。這些子公司成立是爲了組織公司的治療項目，以優化多個商業化期權，並最大化每個項目的價值。
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估算的使用
根據美國通用會計準則編制基本報表，要求公司進行估計和假設，這些估計和假設影響基本報表日期所報告的資產和負債金額以及或有資產和負債的披露，以及報告期內的費用報告金額。實際結果可能與這些估計有所不同。公司持續評估其估計，包括與公司普通股的公允價值、相關的股權補償以及(i)反向看跌期權負債和固定到期對價（以下定義）和(ii)2023年和2024年可轉換債券、SPA認股權證及艾爾頓票據購買選擇權（各項定義見注7）相關的估計。， 高級擔保可轉換債券。公司基於公司的預測和未來計劃、當前經濟狀況以及管理層認爲在情況允許下合理的第三方專業人士提供的信息來進行估計，這些結果構成了判斷資產和負債的賬面價值及記錄費用金額的基礎，而這些費用金額並不容易從其他來源獲得，並在事實和情況要求時調整這些估計和假設。
公司的業績也可能受到經濟、政治、立法、監管或法律行爲的影響。經濟狀況，如衰退趨勢、通貨膨脹、利率期貨、監管法律的變化和貨幣匯率、以及政府的財政政策，都會對運營產生重大影響。公司還可能受到民事、刑事、監管或行政行爲、索賠或訴訟的影響。
現金 及現金等價物
本公司將於購買日期到期爲三個月或更短的所有高度流動性投資視爲現金等價物。 現金及現金等價物以公允價值列示，可能包括貨幣市場基金、美國國債和美國政府贊助的機構證券、公司債務、商業票據和存款證明。截止2024年9月30日和2023年12月31日，本公司的現金幾乎可以忽略不計。
受限 現金
公司的受限現金包括限制提取或使用的現金。截止到2024年9月30日和2023年12月31日的受限現金爲$
信貸風險、表外風險和其他風險的集中
該公司自創立以來一直持有最低現金，並且其某些費用主要通過發行普通股和債務的收益來支付。
公司沒有重大表外安排，符合美國證券交易委員會（SEC）的規則和規定。公司的未來運營結果涉及幾個其他風險和不確定性。影響公司未來運營結果並導致實際結果與預期存在重大差異的因素可能包括，但不限於，臨牀試驗結果和達到里程碑的不確定性、公司產品候選者的監管批准不確定性、公司產品候選者市場接受度的不確定性、來自其他產品的競爭、知識產權的保護與確保、戰略關係以及對關鍵員工和研究合作伙伴的依賴。公司的產品候選者在商業銷售之前需要獲得食品和藥物管理局（「FDA」）及其他非美國監管機構的批准。不能保證任何產品候選者會獲得必要的批准。如果公司被拒絕批准，若批准被延遲，或若無法維持批准，可能會對公司產生重大不利影響。
營業收入
自公司成立以來，尚未從任何來源產生任何營業收入，包括產品銷售。公司不期望在可預見的未來從產品銷售中產生任何營業收入。如果公司對其產品候選者的開發努力取得成功，並獲得監管機構的批准或與第三方簽訂許可協議，公司將來可能會從產品銷售中產生營業收入。然而，無法保證營業收入何時能夠產生，如果能夠的話。
研究 和開發費用
研發費用主要由研究活動發生的費用組成，包括產品候選的開發。研發費用在發生時計入費用。截止至2024年和2023年9月30日的三個月和九個月內，研發費用包括與股票基礎補償相關的費用以及初始許可費、年度維護許可費和服務協議產生的費用。與獲取獨佔執照以開發、使用、製造和商業化尚未達到技術可行性且沒有其他商業用途的產品相關的許可協議支付費用在發生時計入費用。
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遞延發行成本
公司將某些與股權融資相關的法律、專業會計及其他第三方費用資本化，例如業務合併，作爲遞延發行成本，直到該融資完成。在完成股權融資後，這些成本在股東赤字中記錄，作爲因發行而產生的收益的減少。公司記錄了遞延發行成本爲$
收入 稅收和稅收抵免
收入 稅務根據FASB會計標準編纂740進行記錄， 所得稅 (「ASC 740」)，該標準採用資產和負債方法提供遞延稅款。公司確認遞延稅務資產和負債，以反映與已納入基本報表或稅務申報表的事件相關的預期未來稅務影響。遞延稅務資產和負債的判斷基於基本報表與資產和負債的稅務基礎之間的差異，所使用的稅率爲預計將反轉差異的年份的有效稅率，並考慮淨營業虧損（「NOL」）遞延和研究與開發稅收抵免（「R&D Credit」）遞延。如果基於可用證據的權重，更可能的情況是其部分或全部遞延稅務資產不會被實現，則需提供估值準備。公司已記錄全面估值準備以將其淨遞延所得稅資產減少至零。由於公司自成立以來遭受經營虧損並將某些項目資本化用於所得稅目的，因此沒有所得稅的計提，並且對其淨遞延稅務資產保持全面估值準備。如果公司判斷未來能夠實現部分或全部遞延所得稅資產，則對遞延所得稅資產的估值準備的調整將增加作出此判斷的期間的收入。公司依據ASC 740的規定對不確定的稅務立場進行會計處理。當存在不確定的稅務立場時，公司確認稅務立場的稅收利益，程度爲在稅務機構審查的情況下，稅收利益更可能會實現。判斷稅收利益是否更可能會被實現基於稅務立場的技術優勢以及考慮可用的事實和情況。至2024年9月30日和2023年12月31日，公司對不確定稅務立場沒有所得稅負債。
每股淨虧損是通過將歸屬於普通股股東的淨虧損除以期間內流通的普通股加權平均數來計算的，扣除可回購的股票，並且如果是攤薄的，則包括潛在普通股的加權平均數。對於攤薄每股淨虧損的計算，普通股Warrants、流通的普通股期權，以及有條件發行的賺取股份（如第3條所定義的）被視爲所有呈現期間的潛在攤薄證券，結果是，對於這些期間，攤薄每股淨虧損與基本每股淨虧損相同。 業務合併和擔保協議（如上文所述）被視爲所有呈現期間的潛在攤薄證券，結果是，對於這些期間，攤薄每股淨虧損與基本每股淨虧損相同。
公允 價值計量
根據美國通用會計準則，公司某些工具以公允價值計量。公允價值被定義爲在測量日，資產或負債在主要或最有利市場中，市場參與者之間有序交易所收到的資產的交易價格，或爲轉移負債所支付的價格（退出價格）。用於衡量公允價值的評估技術必須最大限度地利用可觀察輸入，並最小化不可觀察輸入的使用。以公允價值計量的金融資產和負債應被分類並披露爲公允價值層次結構中的以下三個等級之一，其中前兩個被視爲可觀察的，最後一個被視爲不可觀察的：
| ● | 第1級—在活躍市場上對相同資產或負債的報價 | |
| ● | 第2級—可觀察的 輸入（其他於第1級報價），例如在活躍市場上對類似資產或負債的報價，在非活躍市場上對相同或類似資產或負債的報價，或其他可觀察的輸入，或可以通過可觀察市場數據證實的輸入 | |
| ● | 第3級—沒有市場活動支持的不可觀察輸入，這些輸入對確定資產或負債的公允價值具有重大意義，包括定價模型、折現現金流方法和類似技術 |
公司的回購看跌期權負債和固定到期考慮（均在下面定義），2023年和2024年的可轉換票據，SPA Warrants，以及Ayrton票據購買期權（均在註釋7中定義和討論） 高級擔保可轉換票據按公允價值計量，公允價值的確定依據上述公允價值層次結構中的第3層輸入（見註釋4） 公允價值計量現金、受限現金、應付賬款、應計費用和短期貸款的賬面價值由於這些負債的短期性質，近似於其公允價值。
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支持 看跌期權負債與固定到期考慮
回購協議
關於業務合併的執行，AHAC與Legacy Ocean與回購方（在註釋3中定義）簽訂了場外交易股票預付期權交易（經修訂，稱爲「回購協議」）。 業務合併和回購協議回購協議賦予回購方以最高數量購買公司的普通股的權利 公司的普通股在公開市場上的每股$ （「贖回價格」）。公司同意在「到期日」（經修訂，即業務合併關閉的第三個週年，受某些加速條款的限制）以遠期方式從回購方購買回購股票的未售出部分。公司應支付的購買價格包括贖回價格每股的預付款（「預付款」），該預付款來自與相關股票相關的信託賬戶釋放的收益。在加速條款中，回購方有權加速到期日，如果公司的股價在45個連續交易日的任何30個交易日內低於規定的每股價格（在2023年10月，此加速條款被修訂，某回購方給予其權利，以便在公司股價在30個連續交易日內的任何20個交易日內低於規定的每股價格時加速到期日）。在業務合併關閉後的任何日期，回購方還可以選擇通過向公司提供一個可選的提前終止日期通知，提前完全或部分終止該安排（「可選擇提前終止」）。對於被提前終止的股票（「終止股票」），回購方將欠公司金額等於（x）終止股票的數量與（y）贖回價格的乘積，該金額在某些稀釋事件的情況下可能會減少（「重置價格」）。
在到期日，公司有義務向後備方支付相當於（i）最大股份數量減去（ii）已終止股份數量的金額$（「到期補償」）。 公司可以在滿足某些條件時以現金或公司普通股股份的形式支付到期補償。
該 後備方已購買固定總量的 公司的普通股，本文稱爲「後備股票」。後備方的選擇性提前終止經濟上導致後備協議在實質上 賦予後備方看跌權，擁有賣出所有或部分的 後備股票的權利。在三年的到期期間，公司有權收回預付款、基礎股票，或兩者的組合， 完全由後備方自行決定。
有關備用協議的進一步信息，請參閱註釋3， 業務合併和擔保協議.
支持 看跌期權負債與固定到期考慮
後備協議由兩個金融工具組成，其會計處理如下：
| (i) | 實質上書面的 看跌期權在公司的簡明合併基本報表中被記錄爲「後備看跌期權 負債」, 並被視爲以公允價值計量的衍生負債，其公允價值變化在淨損失中確認。 公司定期對後備看跌期權負債的公允價值進行計量，任何公允價值調整在簡明合併收益（費用）表中記錄 爲其他收入（費用）。請參見第4條， 公允價值計量， 以獲取更多詳細信息。 | |
| (ii) | 「固定到期 考慮」表示最大股份減去 後備股份乘以$。公司 已選擇根據ASC 825使用公平價值選擇權（「FVO」）來計量固定到期考慮， 基本報表公司定期評估固定到期對價的公允價值，任何公允價值 調整計入綜合損益表中的其他收入（費用）。請參閱第4條， 公允 價值測量，以獲取更多細節。 |
預付款被視爲股權的減少，以反映整體安排的實質，即作爲對後備股份的淨購買以及向後備方銷售股份。
2023 以及2024年可轉換票據、SPA認股權證和Ayrton票據購買選擇權
如第7條所述， 高級擔保可轉債在2023年5月，公司與一位合格投資者簽署了一項證券購買協議，出售最高達三張高級擔保可轉換票據（每張稱爲「票據」，合稱爲「票據」），這些票據可轉換爲公司普通股的股份，總本金金額最高達到$
公司選擇按照公允價值選項對票據進行計量，票據最初按公允價值計量，隨後在每個報告期內重新計量。公允價值的變動反映在壓縮的合併基本報表中的其他收入（費用）中，除了任何與特定工具信用風險相關的部分，這部分將計入其他綜合收益。
此外， 公司認爲投資者獲得額外票據的權利與2023年可轉換 票據和SPA認股權證是分開可行使的。如果在額外票據發行時，公司將評估是否將這些額外票據計入(a) 公允價值選項下的公允價值或(b) 攤銷成本。請參閱第7條， 高級擔保可轉債， 以獲取有關票據條款和潛在未來發行的更多詳細信息。
此外，公司確定SPA認股權證是(i)獨立於2023年可轉換票據，並且(ii)被分類爲衍生負債。因此，在發行時，SPA認股權證的公允價值以2023年可轉換票據的現金收益進行抵消，其餘的$
除了記錄2023年可轉換票據和SPA認股權證的負債外，公司還記錄了針對投資者的購買選項的負債（「Ayrton票據購買選項」），該選項賦予投資者在2025年前有權從公司購買額外的票據（總本金金額的最高額）在一個或多個額外的交割中。該負債的初始確認是根據Black-Scholes Merton模型以公允價值計量的，公允價值爲$
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自2024年7月23日起，公司已達成進一步安排，以籌集最多額外$
所有板塊 現有交易文件下的所有先前違約已被視爲已緩解，並且延遲提交的豁免期限爲2024年8月15日。 當前的債券到期日延長至2024年12月15日，分期付款在公司2023年10-K表格提交之前以及2024年9月1日之前已被豁免， 隨後分期付款將在每個月的第一天繼續到期。投資者已同意將到期日延長至2025年3月。未支付任何款項。
公司將向投資者發行 限制性普通股，以解決所有過往違約和與之相關的罰款股份，受限於每日交易價值的15%泄露，除非該股份的銷售價格高於
$ 每股。公司還將向投資者發行
新發行的票據的本金金額爲 $
根據協議，公司董事長Chirinjeev Kathuria以及由Kathuria博士控制的Poseidon Bio, LLC 同意將其持有的所有公司普通股股份的投票權委託給一個獨立的第三方，由該方酌情投票，直到票據全部償還爲止。
截至2024年9月30日，公司因拖欠SEC申報文件等原因，已違反對Ayrton LLC的義務。
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新興 成長公司和小型報告公司狀態
我們 符合《證券法》第2(a)(19)節所定義的「新興成長公司」，該條款經過2012年《創業機會法案》（「JOBS法案」）的修改。JOBS法案允許「新興成長公司」利用一個延長過渡期，以遵守適用於上市公司的新或修訂的會計標準，直到這些標準通常適用於私營公司。公司已選擇不「選擇退出」此條款，因此，公司將在私營公司採用新或修訂的會計標準時，採取新的或修訂的會計標準，並將繼續這樣做，直到公司（i）不可撤回地選擇「選擇退出」該延長過渡期，或（ii）不再符合新興成長公司的資格。
近期 會計公告
在 2020年8月，FASB發佈了會計標準更新（"ASU"）第2020-06號， 債務 — 可轉換債務與其他 期權（子主題 470-20) 以及衍生工具和對沖-實體自身權益的合同（子主題 815-40） — 對 可轉換工具和實體自身權益合同的會計處理，這簡化了可轉換工具的會計處理，修訂了關於衍生工具範圍例外的指導，針對實體自身權益的合同，修改了由於這些變化而導致的稀釋每股收益計算的指導。公司在2023年1月1日提前採用了ASU第2020-06號，使用了 修改後的追溯方法，並指出公司的先前工具不會受到此次採納的影響。公司在會計處理2023年可轉換票據（在註釋7中定義）時，利用了更新後的衍生工具指導。 高級擔保可轉換票據).
在 2023年11月，FASB 發佈了 ASU 第2023-07號， 分部報告（主題280）：可報告分部披露的改進 （「ASU 2023-07」）ASU 2023-07 擴大了公共實體的分部披露，要求披露定期提供給首席運營決策者的重要分部費用，幷包含在每個報告的分部利潤或虧損的指標中，其他分部項目的金額及其組成說明，以及可報告分部的利潤或虧損及資產的臨時披露。所有ASU 2023-07下的披露要求對於只有一個可報告分部的公共實體也是必需的。ASU 2023-07 對於在2023年12月15日之後開始財政年度的公共商業實體是有效的，並且對於在2024年12月15日之後開始財政年度的臨時期間也是如此。公司目前正在評估採用ASU 2023-07對其合併基本報表及相關披露的影響。
在2023年12月，FASB發佈了ASU第2023-09號， 所得稅（主題740）：對所得稅披露的改進 以增強所得稅披露的透明度和決策有用性。該標準對公司在2024年12月15日後開始的財政年度生效，並可選擇採用前瞻性或追溯性方式。公司目前正在評估採用該ASU對其合併基本報表可能產生的影響。
3. 業務合併和支持協議
業務結合的所有板塊，除了併購外，還包括其他交易。
在 2023年2月14日，公司根據業務合併協議的條款完成了其業務合併。
在業務合併和其他交易完成時（或在指示的情況下立即之前），發生了以下情況：
| ● | AHAC將其名稱從 「Aesther Healthcare Acquisition Corp.」更改爲「Ocean Biomedical, Inc.」，在這裏稱爲「公司」。除非上下文另有要求，否則此處對「AHAC」的引用指的是關閉前的公司。 | |
| ● | AHAC發行了大約
股份，總價值爲 $ | |
| ● | 該 由Aesther Healthcare Sponsor, LLC（「贊助商」）持有的AHAC B類普通股 | |
| ● | 後盾方（如下文定義） 保障協議購買了 在關閉前購買的AHAC的A類普通股，這些股票受後盾協議的限制（這些股票稱爲「回收股票」，以及「後盾協議」將在下面進一步討論並定義）。 |
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| ● | AHAC在關閉之前向贊助商額外發行了 向贊助商發行了A類普通股以換取獲得超出 2022年9月的截止日期完成初步業務組合的延期。 | |
| ● | 後盾方在公開市場購買了
AHAC的A類普通股，購買總價爲$ | |
| ● | 公司向Second Street Capital, LLC（「Second Street Capital」）發行了三份Warrants（「轉換海洋Warrants」），可行使以收購與第二街資本先前爲終止Legacy Ocean Warrants而發行的Legacy Ocean Warrants的經濟價值相等數量的公司普通股。轉換海洋Warrants可行使的總量爲 | |
| ● | 公司向Polar（如下所定義）發行了 保障協議) 新發行的普通股，受《後備協議》的前購條款限制。 | |
| ● | 每一股AHAC的A類普通股自動重新分類爲公司普通股，包括未贖回的AHAC A類普通股。 |
以下表格將業務合併的各項與截至2024年9月30日的未經審計的簡明合併股東權益變動表和現金流量表進行對賬：
| (以千爲單位) | ||||
| 來自AHAC的信託現金，扣除贖回 | $ | |||
| 業務合併的發行費用 | ( | ) | ||
| 對股東總赤字的淨影響 | ||||
| 非現金髮行成本 | ||||
| 融資活動提供的現金淨影響 | $ | |||
收益 股份
此外，根據業務合併協議，Closing前Legacy Ocean的股東（「Legacy Ocean股東」）有權從公司獲得最多額外的 公司的
普通股（「收益股」）如下：(
公司已得出結論，收益分享股票代表一個獨立的與股本相關的金融工具，因爲該安排（i）可以與公司的股票掛鉤，以及（ii）滿足ASC 815-40中所有的股本分類標準。公司在ASC 815-40-15中進行了描述的兩步分析，以判斷掛鉤，並注意到儘管該安排確實包含或有條件，但這些條件是基於公司股票的市場，並不排除掛鉤。
在交割時，收益股票的公允價值被視爲自交割日期以來的假定股息。由於確認收益股票的公允價值的條目在額外的實收資本中抵消，因此對壓縮合並的基本報表沒有內在影響。由於收益股票取決於公司的股票價格，因此對已發行的股票沒有影響，並且在滿足條件之前不會代表參與證券。
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後備 協議
如
備註2中所述， 財務報表基礎及重要會計政策摘要在2022年8月31日，AHAC與Legacy
Ocean簽署了與執行業務合併協議相關的備份協議。根據備份協議及其後續修訂的條款，Vellar同意在公開市場上購買最多 AHAC的A類普通股，換取最多$
在2023年2月13日，AHAC、Vellar和Legacy Ocean與Meteora特別機會基金I，LP、Meteora精選交易機會主基金，LP以及Meteora資本合作伙伴，LP（統稱爲「Meteora」）（以下簡稱「Meteora協議」）簽訂了一項轉讓和創新協議，依據該協議，Vellar將其在回購協議下購買公司的普通股的義務轉讓給Meteora。 此外，在2023年2月13日，AHAC、Vellar和Legacy Ocean與Polar多策略主基金（「Polar」以及與Vellar和Meteora共同稱爲「回購方」）（以下簡稱「Polar協議」）簽訂了一項轉讓和創新協議，該協議於2023年10月2日進行了修訂，依據該協議，Vellar將其在回購協議下向Polar購買公司的普通股的義務轉讓給Polar。 在回購協議下購買公司的普通股的義務轉讓給Polar。
此外，回購協議賦予回購方從公司購買額外股份的權利（"額外股份"，與下面定義的再循環股份合稱爲"回購股份"），數量上限爲再循環股份數量與最大股份數量之間的差額。 .
如 在註釋2中進一步討論的那樣， 財務報表基礎及重要會計政策摘要公司同意在到期日按期購買來自擔保方的未售出部分擔保股份。公司支付的購買價格包括來自與這些股份相關的信託帳戶釋放的收入預付款。在到期日， 公司有義務向擔保方支付等於（i）最大的股份數量減去（ii）終止股份數量乘以$的金額， 定義爲擔保協議中的到期對價。公司可以在滿足特定條件的情況下以現金或公司普通股支付到期對價。 減去終止股份的數量乘以$在擔保協議中定義爲到期對價。公司可以在滿足特定條件的情況下以現金或公司普通股支付到期對價。
在2023年2月14日，(i) 根據備忘協議，後備方購買了 AHAC的A類普通股股份，價格爲$ 每股（「再循環股份」），並且(ii) 根據Polar行使其購買額外股份的權利，AHAC、Legacy Ocean和Polar簽署了一份認購協議，依據該協議，Polar購買了 公司普通股的新發行股份，每股購買價格約爲$ （「Polar認購」）。根據備忘協議，額外股份的條款與再循環股份相同，包括償還和回購方面。
在交割後，預付款金額爲$
後備協議由兩個金融工具組成，具體覈算如下：
| (i) | 在公司簡明合併基本報表中記錄的實質上是看跌期權，稱爲「後備看跌期權負債」，並視爲衍生負債，以公允價值計量，同時公允價值的變動在淨損失中確認。 公司定期測量後備看跌期權負債的公允價值，任何公允價值調整記錄在簡明合併營業報表中的其他收入(費用)中。請參見第4條， 公允價值計量以獲取更多詳細信息。 | |
| (ii) | 代表「固定到期考慮」， 的最大股份數減去 後備股票乘以$公司已選擇根據ASC 825使用公允價值選項（「FVO」）來衡量固定到期考慮， 基本報表公司定期評估固定到期收益對價的公允價值，任何公允價值的調整都記錄在綜合損益表中的其他收入（費用）中。請參見注釋4， 公允價值計量，以獲取更多詳情。 |
預付款被視爲股本的減少，以反映整體安排的實質，作爲對後盾股份的淨購買以及對後盾方的股份銷售。
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2023年5月23日，公司收到來自Vellar的股權預付前向交易估值日期通知（「通知」），
該通知表示，由於公司未能及時註冊Vellar持有的股份，Vellar有權終止其部分股份的後備協議，
Vellar聲稱有權獲得到期補償（如後備協議中定義）等於$
在2023年10月2日，公司與Polar簽訂了一份附函協議（「附函」）。附函修改了Polar協議的某些條款，如說明中第3條所討論的那樣， 業務合併和支持協議附函修改了與Polar和Polar協議相關的保底協議中使用的「賣方VWAP觸發事件」和「重置價格」的定義。根據修改後的定義，（i）「賣方VWAP觸發事件」是指如果VWAP價格在隨後的30個連續交易日內的任何20個交易日低於$ 每股和（ii）「重置價格」定義爲$
「賣方VWAP觸發事件」在2023年10月發生在Polar，而其他後備方則是在2023年11月。公司於2023年11月6日收到Polar的書面通知，承認其有權從通知之日起選擇任何日期作爲到期日，包括業務合併的第三個週年紀念日。截止到本申請日，兩個後備方，Polar和Meteora尚未指定到期日。請參閱註釋3，業務合併和後備協議，獲取有關Vellar所謂到期日的更多細節。
普通 股票購買協議
公司需遵循(i)一份普通股票購買協議，日期爲2022年9月7日，並於2023年10月4日修訂（以下簡稱「普通股票購買協議」）和(ii)一份註冊權益協議，日期爲2022年9月7日（以下簡稱「白獅註冊權益協議」），該協議由AHAC與白獅資本有限責任公司（「白獅」）簽訂。根據普通股票購買協議，公司有權不時選擇以最高$
根據ASC第815號， 衍生品與對沖， 公司已確定，出售額外股票的權利代表了一項獨立的看跌期權，因此，該金融工具被歸類爲名義公允價值的衍生資產。
考慮到白獅購買股權線股份的承諾，普通股票購買協議包括 最初承諾的股份給予白獅，公允價值爲$
自2023年10月4日起，公司與白獅公司簽署了普通股購買協議的首次修訂（簡稱「修訂」）。
修訂旨在爲公司提供更大的靈活性，併爲公司提供一種新的選擇，通過普通股購買協議以固定價格發出「購買通知」。 每股如果普通股的市場價格超過$ 每股。此外，在2023年11月2日，白獅公司根據普通股購買協議購買了 公司在普通股購買協議下的普通股股份，收到了大約$
贊助商 承諾票據
在業務合併完成後，公司承擔了AHAC的兩筆貸款，總額爲$
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根據上述業務合併協議的條款，涉及AHAC貸款的承擔， 公司爲作爲對贊助商向公司提供貸款的補償，發行了 的普通股股份給贊助商（「贊助商延期股份」）。此外，根據在償還貸款之前簽署的修訂條款， 公司共發行了 的普通股股份以換取到期日的延期。
公司在截至2023年3月31日的三個月中確認了債務清償損失爲$
延期 承銷佣金
在
關閉時，AHAC的首次公開募股（「IPO」）的承銷商同意推遲支付$
在
2024年3月4日，公司將承銷商的可轉換票據的可轉換部分轉換爲 限制性股票，轉換價格爲$
在2024年11月13日，公司收到關於其2023年與EF Hutton的票據違約通知，指稱有$
4. 公允價值計量
財務 在2024年9月30日，按公允價值定期計量的負債包括以下內容：
| 公允價值層次結構 | ||||||||||||||||
| (以千爲單位) | 第一級 | 第二級 | 第三級 | 總計 | ||||||||||||
| 財務負債： | ||||||||||||||||
| 補充看跌期權負債 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||
| 固定到期考慮 | ( | ) | ( | ) | ||||||||||||
| 2024 可轉換債券 (1) | ( | ) | ( | ) | ||||||||||||
| SPA權證 | ( | ) | ( | ) | ||||||||||||
| 所有金融負債 | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||
| (1) |
在截至2024年9月30日的三個月和九個月期間，沒有在第1級、第2級和第3級之間進行轉移。
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回購看跌期權負債及固定到期考慮的估值
公司利用蒙特卡羅模擬來評估回購看跌期權負債和固定到期對價。蒙特卡羅模擬中使用的關鍵輸入和假設，包括波動率、預期期限、預期未來股票價格以及各種模擬路徑，用於估算相關衍生負債的公允價值。
預計 波動性 | 預期未來 股票價格 | 無風險利率 | ||||||||||
| 後備看跌選擇權負債和固定到期考慮 | % | $ | -$ | % | ||||||||
2024可轉換票據和SPA Warrants的估值
公司在成立時利用蒙特卡洛模擬評估2024年可轉換票據和SPA Warrants的價值。蒙特卡洛模擬的計算爲所有模擬路徑的平均現值。用於蒙特卡洛模擬的關鍵輸入和假設，包括波動率、估計市場收益、無風險利率、各種情景的發生概率（包括後續配售和控制權變化）以及各種模擬路徑，均用於估計相關負債的公允價值。
下表總結了在蒙特卡洛模擬中使用的一些重要輸入和假設：
| 預計
波動性 |
區間
的 概率 |
無風險 利率 | ||||||||||
| 2024 可轉換票據 | % | % | % | |||||||||
| SPA認股權證 | % | % | % | |||||||||
艾爾頓票據購買選擇權的估值
本公司利用布萊克-舒爾斯-梅頓模型來對Ayrton票據購買權進行估值。該模型中使用的關鍵輸入和假設，包括波動性和無風險利率，被用於估算相關負債的公允價值。本公司將繼續在每個報告期間測量公允價值，後續的公允價值將在本公司的簡明合併營運報表中的其他收入（費用）中記錄。
以下表格總結了在Black-Scholes Merton模型中使用的一些重要輸入和假設：
| 估計 波動性 | 無風險利率 | |||||||
| Ayrton票據購買選項 | % | % | ||||||
下表提供了公司固定到期對價、保底看跌期權負債、2023可轉換票據、2024可轉換票據、SPA認股權證和Ayrton票據購買期權的綜合公允價值的變動情況，其公允價值是使用第3級輸入確定的：
| 第3級持續滾動 (以千爲單位) | 補充看跌期權負債 | 固定到期考慮 | 2023/2024 可轉換債券 | SPA權證 | Ayrton票據購買選項 | |||||||||||||||
| 截至2023年1月1日的餘額 | $ | $ | $ | $ | $ | |||||||||||||||
| 初始公允價值計量 | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
| 公允價值變動 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| 截至2023年12月31日的餘額 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| 截至2024年7月15日的公允價值變動 | ( | ) | ( | ) | ||||||||||||||||
| 截至2024年7月15日的餘額 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
| 票據交易的影響 | ( | ) | ( | ) | ||||||||||||||||
| 發行的額外2024年票據 | ( | ) | ||||||||||||||||||
| 公允價值變動 | ( | ) | ( | ) | ||||||||||||||||
| 截至2024年9月30日的餘額 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
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5. 應付賬款和應計費用
應付賬款和應計費用包括以下內容：
| (以千爲單位) | 9月30日 2024 | 2023年12月31日, 2023 | ||||||
| 應付賬款和應計費用： | ||||||||
| 會計和法律費用 | $ | $ | ||||||
| 供應商費用 | ||||||||
| 研究與開發 | ||||||||
| 其他 | ||||||||
| 應付賬款和應計費用總額 | $ | $ | ||||||
6. 貸款協議
開空期 貸款協議
截至2024年9月30日和2023年12月31日，公司擁有以下開空貸款餘額：
(以千爲單位)
9月30日 2024 | 2023年12月31日, 2023 | |||||||
| 開空期貸款： | ||||||||
| 第二街貸款 | $ | $ | ||||||
| 第二街貸款 2 | ||||||||
| 三月第二街貸款 | ||||||||
| 麥克拉貸款 | ||||||||
| 承銷商 promissory note | ||||||||
| 2023 可轉換票據 | ||||||||
| 2024 可轉換票據 | ||||||||
| 波塞冬需求票據 | ||||||||
| 短期貸款，扣除發行成本 | $ | $ | ||||||
第二 街道資本貸款
第二街貸款
在
2022年2月，公司與Second Street Capital簽署了一份貸款協議（「Second Street Loan」），根據該協議，公司借款$
| 19 |
第二街貸款2
在
2022年5月，公司與Second Street Capital簽訂了第二份貸款協議（「Second Street Loan 2」）以借款
$
三月 第二街貸款
在2023年3月，公司與第二街資本（"三月第二街貸款"及與第二街貸款和第二街貸款2統稱爲"第二街貸款"）簽訂了一份新的貸款協議，根據該協議，公司可以借入最多$
第二 街資本貸款修訂
關於對第二街貸款的修訂，額外的
最近的修正案，自2023年5月生效，包括以下條款，截止到2024年9月30日時沒有任何條件：
| (i) | 在修訂條款執行後， 公司支付了剩餘的應付費用。 | |
| (ii) | 在收到第一次追加交割後的5個工作日內（根據證券購買協議中的定義，討論於註釋7中， 高級
擔保可轉債），公司需要支付$ | |
| (iii) | 在第二次追加交割後的5個工作日內（根據證券購買協議中的定義），公司需要支付$ | |
| (iv) | 如果公司通過融資安排籌集到至少$ | |
| (v) | 作爲修訂的交換， 公司向第二街資本發行了 的普通股。發行股票的公允價值被記錄在 公司的簡明合併經營報表中，作爲債務解除損失。 |
第二街資本貸款 – 利息費用
在截至2024年和2023年9月30日的三個月期間，公司確認了$
McKra 投資III貸款
在
2023年3月，公司與McKra Investments III（「McKra」）簽訂了一項貸款協議，根據該協議，公司
借款$
| 20 |
McKra貸款已於2023年5月生效進行了修訂，包括以下條款：
| (i) | 在修訂執行後， 公司支付了剩餘的未付費用。 | |
| (ii) | 在收到第一次附加交割後5個工作日內（在證券購買協議中定義，如註釋7所述， 高級
擔保可轉換票據），公司需要支付$ | |
| (iii) | 在收到第二次附加交割後5個工作日內（如註釋7所述， 高級擔保可轉換票據），公司需支付
$ | |
| (iv) | 如果公司通過融資安排籌集至少$ | |
| (vi) | 作爲簽署修正案的對價，公司向McKra發行了 普通股。所發行股票的公允價值在公司的簡明合併損益表中記錄爲債務解除損失。 |
截至2024年和2023年9月30日的三個月期間，公司確認了$
在
2024年，公司與Second Street Capital和McKra Investments III達成了一項和解協議，涉及金額爲$
所有證券正以定向增發交易的方式發行，這些交易根據1934年修訂的《證券交易法》第4(a)(2)條款免於註冊。
波塞冬 需求通知
在2023年10月2日，公司向其最大股東Poseidon Bio, LLC（「Poseidon」）發行了一張要求付款的本票，金額爲$
承銷商 本票
有關由於AHAC首次公開募股的承銷商而產生的未償還票據的討論，請參見注釋3， 業務合併和後盾協議。
7. 高級擔保可轉換票據
高級 擔保可轉換票據
在
2023年5月， 公司與一名合格投資者（「投資者」）簽署了一份證券購買協議（「SPA」），
出售最多三份高級擔保可轉換債券（每份爲「債券」，合稱爲「債券」），
這些債券可轉換爲公司普通股，合計本金金額最高爲$
每張票據適用的利率在任何確定日期均爲較低者，
| 21 |
所有
或每個票據的本金部分，加上應計未付利息，可以在任何時間，全部或部分，
根據持票人的選擇轉換爲公司的普通股，初始固定轉換價格爲$
該 票據規定了某些違約事件，包括但不限於，違反SPA中描述的契約，以及Dr. Chirinjeev Kathuria未能擔任公司董事會主席。與違約事件相關，持票人可以要求公司贖回所有或部分票據，按照SPA中規定的溢價。
公司需遵守關於票據等級、債務產生、留置權存在、債務償還和投資的進行、現金支付分紅派息、分配或贖回、資產轉讓、其他債務到期及與關聯方的交易等事項的某些傳統肯定性和否定性契約。
公司還需遵守財務契約，要求(i) 公司可用現金的金額在每個額外交割時等於或超過$
公司選擇在公允價值選項下按照公允價值對票據進行覈算，根據該選項，票據最初以公允價值計量，並在每個報告期內進行重新計量。公允價值的變動反映在合併財務報表中的其他收益（費用）內，除非與特定金融工具信用風險相關的部分（如有）將記錄在其他綜合收益中。
此外， 公司認爲，有權獲得額外票據可以與2023年可轉換票據及SPA 權證分開行使。如果在未來發行額外票據，公司將評估是否以(a)公允價值選項下的公允價值或(b)攤餘成本來進行會計處理。
此外，公司確定SPA認股權證是（i）與2023年可轉換債券獨立存在的，並且（ii）被分類爲衍生負債。因此，在發行時，SPA認股權證以公允價值計量，並抵銷2023年可轉換債券的現金收入，其餘部分記錄爲$
除了記錄2023年可轉換債券和SPA認股權證的負債外，公司還記錄了Ayrton票據購買選擇權的負債，該選擇權允許投資者在2025年前選擇從公司購買額外的票據（最高可達總本金金額）在一個或多個額外交割中。該負債的初始確認是按公允價值測量的，採用了黑-肖爾斯-梅頓模型，公允價值爲$
公司在2022年6月向前Gameface股東發行了普通股。 在截至2023年12月31日的財年中，向投資者支付了其普通股的股份作爲利息。
總計$
在 2024年3月4日至2024年3月8日期間，公司的2023年可轉換票據持有人向公司發送了替代轉換通知， 以根據2023年可轉換票據中的替代轉換價格機制，將本金和應計未支付的利息轉換爲公司普通股的股份。公司目前正在評估情況，並與債券持有人合作以達成公正的解決方案。
自2024年7月23日起，公司進入了進一步的安排，籌集了高達額外的$
所有 現有交易文件下的先前違約已被視爲已解決，並且有一個延遲提交的例外，直到2024年8月15日。目前的票據已將到期日期延長至2024年12月15日，分期付款已被豁免，直到公司2023年Form 10-K提交之日或2024年9月1日之前的較早日期，以後分期付款將繼續在每個月的第一天到期。投資者已同意將到期日期延長至2025年3月。沒有進行任何付款。
公司將向投資者發行 限制性普通股以清償所有過往違約以及將與之一起發行的罰金股票，須遵循每日交易價值的15%的泄露條款，除非該股票的銷售價格高於$ 每股。公司還將向投資者發行
爲現有票據換取的新票據的本金金額爲$
根據協議，Chirinjeev Kathuria，公司的董事長，以及由Kathuria博士控制的Poseidon Bio, LLC，也同意將他們所有的公司的普通股股份的代理權授予一個獨立的第三方，由該方根據其判斷進行投票，直到票據全部還清爲止。
截至2024年9月30日，因未按時提交SEC文件等原因，公司的義務已對Ayrton LLC違約。
| 22 |
8. 承諾與或有事項
訴訟
公司可能會不時面臨各種法律訴訟和索賠，這些訴訟和索賠是在其業務活動的正常過程中產生的， 包括下面描述的可能對我們的經營結果和現金流產生重大影響的重大事項。在許多訴訟中，包括下面描述的具體事項， 判斷任何損失是否可能發生或者甚至合理可能發生，或者估算可能損失的規模或區間固有地是困難的， 對於法律事務的計提，直到考慮到特定事項的損失被認爲是可能且合理可估時才予以記錄。鑑於法律事務的性質及其涉及的複雜性， 通常在我們了解到其他因素，包括涉及的特定索賠、我們辯護成功的可能性、尋求的損害賠償或其他救濟、發現或其他程序考量將如何影響結果、其他各方的和解姿態，以及可能對結果產生重大影響的其他因素之前， 很難預測和判斷損失或損失區間的有意義估計。對於此類事項，除非另有說明，我們認爲目前無法提供有意義的損失估計。此外，法律事務往往需要多年才能解決，在此期間必須不斷評估相關發展和新信息。
Heller 訴 Ocean 生物醫藥公司等：
開啓
2023 年 5 月 23 日，喬納森·海勒（「海勒」）對公司、波塞冬生物有限責任公司、Chirinjeev Kathuria 博士提起民事訴訟
以及羅德島地區法院的Elizabeth Ng（統稱爲 「被告」）。海勒提出了指控
他從公司辭職後有權獲得工資和其他各種報酬。2023 年 7 月 27 日，被告
提交了答覆和肯定答覆。2024年9月3日，被告提出動議，要求駁回其中包含的多項罪名
索賠，理由是罪狀沒有說明可據以給予救濟的申訴。如果成功，該議案將刪除
Kathuria博士和吳女士被指定爲被告，並將把針對該公司的索賠數量減少到三起。法院沒有提供
本議案的聽證日期。公司得出結論，可能發生損失，並記錄了負債爲美元
IPFS 公司訴海洋生物醫藥公司
開啓
2024 年 1 月 4 日，IPFS 公司（「IPFS」）向美國特區地方法院對該公司提起訴訟
特拉華州的。IPFS索賠與向Aesther Healthcare Acquistion Corp提供的商業保險費融資有關的欠款
2022年，在2022年8月31日合併協議簽署之後，但在業務合併完成之前。IPFS 提出了違約動議
2024 年 2 月 16 日的判決。已經作出了兩項有利於IPFS的違約判決；一項是2024年4月19日作出的，與主事有關
金額 $
Entoro 證券有限責任公司訴海洋生物醫藥公司。
在2024年6月，Entoro Securities LLC（"Entoro"）在特拉華州高級法院對公司提起訴訟。Entoro聲稱其分包商將公司介紹給Aesther Healthcare Acquisition Corp.，並聲稱由於業務合併，公司有義務向Entoro支付介紹費。Entoro要求的介紹費金額爲$
梅泰奧拉 特殊機會基金 I, LP 等訴 海洋生物醫藥公司。
在2024年5月22日，Meteora特殊機會基金I，LP等（由Meteora特殊機會基金I，LP；Meteora資本合夥人，LP；以及Meteora精選交易機會主基金，LP組成，統稱「原告」）在紐約州最高法院提起訴訟。
原告聲稱與補充協議相關的賣方VWAP觸發事件如註釋2所述， 財務報表基礎及重要會計政策摘要 和註釋3，
業務合併和支持協議發生在2023年11月3日，當時公司的股價在45個交易日前的30天內交易低於$每股。原告將到期日定爲2024年2月，屆時原告聲稱整個到期對價均已屆滿，並應支付給原告，總金額爲$
許可證 費用
該 公司與其學術研究機構合作伙伴簽訂了許可協議。根據這些許可協議，公司 需要支付年度固定許可維護費。公司還需在成功完成 並達到某些里程碑時進行付款，並且在銷售與這些許可相關的產品時支付版稅。許可和合作協議下的付款義務取決於未來事件，例如達到特定的發展、臨床、監管和商業里程碑。由於這些未來里程碑付款的時間尚不確定，因此公司未在截至2024年9月30日和2023年12月31日的壓縮合並資產負債表中包含這些費用。
有關期間內記錄的許可費的進一步討論，請參閱第12條， 許可和製造業-半導體協議.
或有 補償和其他或有支付
根據管理僱傭協議，我們有一些在融資時可支付的薪水和獎金，統稱爲
根據條件支付的報酬，這些獎金僅在我們首次累計籌集至少$的基礎上方可支付。
我們
還有$
這些
金額將在應急事件未發生的情況下不予支付。由於這些協議的義務支付取決於
這些未來事件，而這些事件被認爲是不太可能發生的，因爲它們被視爲超出我們的控制範圍，因此我們未將
這些金額納入我們的合併基本報表。在截至2023年12月31日的財政年度內，$
9. Equity
普通 股
公司的普通股持有人有權在公司董事會宣佈分紅派息時獲得分紅派息。普通股持有人在所有股東投票事項上有權每股獲得一票。在2024年9月30日和2023年12月31日，公司有 每股面值爲$的普通股授權股份 每股。
在2024年4月1日，海洋生物醫藥有限公司（「公司」）向證券交易委員會（「SEC」）提交了120亿.25號表格的延期通知，表示截至2023年12月31日的年度報告（「10-K表格」）的提交將會延期，因爲公司確定在沒有不合理的努力或費用情況下，無法在2024年4月1日的截止日期之前提交10-K表格。
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公司於2024年4月18日收到納斯達克上市資格部（「納斯達克」）的通知（「通知」）， 指示公司仍然未能遵守納斯達克上市規則5250(c)(1)下的及時報告要求，該規則要求上市公司及時向SEC提交所有必要的定期報告。 在2024年5月22日和2024年8月19日，公司的季度報告（10-Q表格）針對截至2024年3月31日和2024年6月30日的期間收到了類似通知。
通知將對公司的普通股的上市或交易沒有立即影響，但無法保證進一步的延遲不會對公司的普通股的上市或交易產生影響。公司提交了一份修訂計劃，以重新獲得關於提交要求的合規性；並且公司於2024年11月25日提交了逾期的10-K表格，並於2024年12月23日提交了截至2024年3月31日和2024年6月30日的10-Q季度報告。
2024年12月3日，Ocean Biomedical, Inc.（「公司」）收到了納斯達克的信函，稱其已不再遵守納斯達克上市規則（「規則」）第5550(a)(2)條，要求上市證券維持最低買盤價格爲$。 根據最近30個連續交易日（2024年10月21日至2024年12月2日）的收盤買盤價格，公司已不再滿足此要求。然而，規則還規定公司有180日曆天的合規期（到2025年6月2日），以重新獲得合規。根據規則5810(c)(3)(C)，如果在這180天期間內，公司證券的收盤買盤價格在至少10個連續交易日內達到至少$1，納斯達克將向公司提供書面合規確認，此事將被關閉。如果公司在2025年6月2日前未能恢復合規，公司可能有資格獲得額外時間以恢復合規，或者可能面臨除牌。
第5550(b)(2)條的上市規則（「規則」）要求上市證券保持最低上市證券市場價值（MVLS）爲$
病毒體 貢獻協議
開啓
2023 年 10 月 11 日，公司簽訂了經修訂和重述的捐款協議（「供款協議」）
與 Virion Therapeutics, LLC（「Virion」）和 Poseidon Bio LLC 合作，提供財務、技術和運營援助
進一步推動 Virion 基於智能且適應性強的 CD8+ T 細胞免疫療法（「VIACT」）的生長和發展
平台。根據捐款協議，公司收購了
根據ASC 323，對Virion的投資被視爲權益法投資，因爲公司對被投資單位具有重大影響。截至2024年9月30日的三個月和九個月期間，Virion產生了約$的淨損失。
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股票 期權
2022 股票期權和激勵計劃
公司的董事會（「董事會」）在業務合併完成之前批准並通過了2022年股票期權和激勵計劃以及非員工董事的非合格股票期權協議（「激勵計劃」）。
根據激勵計劃，初始發行或轉讓的普通股最高數量爲 股（「股份限額」）。股份限額將在激勵計劃有效期內，每年的1月第一個交易日自動增加，第一次增加將在2024年1月進行，增加的數量將等於（i）截至前一個日曆年12月31日已發行和流通的普通股總數的百分之三（3%），或（ii）董事會可能設定的普通股數量的較小者。
激勵計劃授權股票期權、股票增值權及其他以公司的普通股票或公司的普通股票單位授予或以其計量的獎勵形式，以及現金獎金獎勵。激勵計劃保留靈活性，以提供有競爭力的激勵並根據特定需求和情況量身定製福利。任何獎勵都可以設計爲現金支付或結算。激勵計劃下的任何獎勵（包括股票期權和股票增值權的獎勵）可以在授予時完全歸屬，或可能受到基於時間和/或績效的歸屬要求的限制。
激勵計劃並不限制董事會或任何委員會授予獎勵或授權任何其他補償的權力，無論是否參考公司的普通股，在任何其他計劃或權力下。董事會可以在任何時間和以任何方式修改或終止激勵計劃。修訂需要股東批准，僅在適用法律要求或董事會認爲必要或可取的範圍內。除非董事會提前終止，並且受股東可能批准的任何延期的限制，授予新獎勵的權力將在激勵計劃建立的第十週年時終止。
股票 期權授予非員工董事
根據非員工董事 compensation 政策，在初次選舉或任命進入董事會時，每位新的非員工董事將按照激勵計劃被授予一次性的非法定股票期權，允許購買 在該董事選舉或任命進入董事會的日期發行的普通股。這些股票將在三年內以基本相等的每月分期方式歸屬，前提是董事在每個適用的歸屬日期之前繼續擔任董事會成員。
在
2023年2月15日， 每位非員工董事獲得了期權，行使價格爲$
在授予日期，非法定股票期權購買普通股的估計公允價值爲$ 每股，並使用布萊克-肖爾斯莫頓模型進行確定。估值使用了以下假設：
預期 波動性: %
預期 期限: 沒有
無風險 利率: %
分紅 收益率截至目前，公司尚未宣告或支付分紅派息，也不預計會宣告分紅派息。因此，分紅派息收益率被估計爲零。
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截至2024年9月30日的三個月和六個月期間記錄的基礎於股票的薪酬費用爲$ 百萬美元和$百萬，分別記錄在公司的簡明合併損益表中的一般和行政費用內，具體如下所述。
| (以千爲單位) | 期權 | 加權平均行使價格 | 加權平均剩餘合同期限 (以年計) | 總內在價值 （以千爲單位） | ||||||||||||
| 截至2024年1月1日的未結餘額 | $ | |||||||||||||||
| 授予的期權 | - | |||||||||||||||
| 期權被取消或沒收 | - | |||||||||||||||
| 截至2024年9月30日未償還 | $ | |||||||||||||||
上述表格中的總內在價值是通過計算截至2024年9月30日，公司普通股的公允價值與期權的行使價格之間的差額而得出的。截至2024年9月30日，與未歸屬的股票期權獎勵相關的總未確認補償爲$
2022 員工股票購買計劃
董事會在業務合併完成之前批准並採納了2022年員工股票購買計劃（「ESPP」）。
主題 需進行調整， 根據員工股票購買計劃（ESPP）的期權行使，可以購買的普通股數量爲。 根據員工股票購買計劃（ESPP）行使期權時交付的股票可以是授權但未發行的股票、庫存股票或在公開市場交易中獲得的股票。根據某些要求和例外，所有在公司或其子公司的工資記錄中被列爲員工的個人均有資格參加ESPP的一個或多個發行。
員工股票購買計劃（ESPP）允許符合條件的員工在指定的發行期間內購買普通股，發行期間不得超過27個月。在每個發行期間，符合條件的員工將在發行期的最後一個工作日獲得購買普通股的選擇權。根據員工股票購買計劃在行權日期行使選擇權所發行的每一股普通股的購買價格將爲
董事會有權在其認爲合適的任何程度和方式上修改員工股票購買計劃（ESPP），前提是任何被視爲根據1986年美國國際收入法典第423條採用新計劃的修訂（「法典」）需要股東批准。董事會可以隨時暫停或終止ESPP。截至2024年9月30日，未進行任何購買。
利潤 對波塞冬的興趣
Legacy Ocean的創始人和唯一股東被授予 Legacy Ocean的普通股（「創始人股份」） 在2019年1月2日Legacy Ocean成立時授予。創辦後，在業務合併之前，絕大多數的創始人 股份被貢獻給Poseidon Bio, LLC（「Poseidon」），Poseidon隨後授予Legacy Ocean的創始人和其他某些高管與員工相應的A類和B類利潤 權益，最終導致Legacy Ocean的創始人持有 %的Poseidon投票權。此外，在創立後和業務合併之前，Legacy Ocean實施了 拆股並股，適當地反映在涉及的簡明合併基本報表中。
這些 在公司的控股股東中授予的利潤權益被視爲由股東發生的交易，並且 屬於ASC 718的範圍， 股票補償. 因此，股東的相關交易被歸入 公司的簡明合併基本報表。截止到2024年9月30日，Legacy Ocean的創始人持有 % 的 投票權和 %的股權權益在波塞冬。相關的基於股票的補償如下所討論。
基於股票的 薪酬
公司根據美國公認會計原則（U.S. GAAP）確認授予員工、非員工和董事的權益基礎補償獎勵的股票基礎補償成本。公司使用布萊克-斯科爾斯期權定價模型估算公允價值及其結果金額。公允價值在必要的服務期內以直線法確認，但在授予提前到期的情況下將加速確認。對於未實現的部分需在發生時進行會計處理，並要求管理層做出多項其他假設，包括基礎股票的波動性、無風險利率和預期分紅派息。預期波動性基於一組可比上市公司的歷史股價波動性，其時間段等於授予或期權的預期期限。
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截至2024年9月30日的三個月和九個月的股票補償包括與(i) 2023年第一季度授予非員工董事的期權和(ii) 發給顧問和顧問的Warrants相關的費用，如下文所述。截止2024年9月30日的三個月和九個月的股票補償僅包括與Poseidon的利潤權益相關的費用。以下表格總結了截至2024年和2023年9月30日的三個月和九個月的期權、Warrants及B類利潤權益的股票補償的分配情況:
| 截至三個月 9月30日， |
截至九個月的期間 9月30日， |
|||||||||||||||
| (以千爲單位) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| 基於股票的補償： | ||||||||||||||||
| 研究 和開發 (1) | $ | $ | $ | $ | ||||||||||||
| 一般 和行政 (2) | ||||||||||||||||
| 總股票薪酬 | $ | $ | $ | $ | ||||||||||||
| (1) | ||
| (2) |
10. 認股權證
截至2024年9月30日和2023年12月31日，以下認購普通股的Warrants尚未到期：
| 2024年9月 30日 | ||||||||||||||||
| 發行日期 | 可發行股份數 | 行使 價格 | 分類 | 到期 | ||||||||||||
| 貸款人/名稱 | ||||||||||||||||
| $ | (2) | |||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| (4) | $ | |||||||||||||||
| (4) | $ | |||||||||||||||
| $ | ||||||||||||||||
| $ | ||||||||||||||||
| (1) | ||
| (2) | ||
| (3) | ||
| (4) |
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在2022年和2023年，公司與Second Street Capital、Special Forces F9, LLC（「特種部隊」）和McKra簽訂了某些協議，因此發行了可購買公司普通股的認股權證。對於每一個發行的認股權證，公司遵循ASC 480中的指導， 區分負債和股本判斷這些工具是否應被記錄爲負債或股權。對於在發行時完全歸屬且具有固定期限的Warrants，該工具被分類爲股權，公司在授予日期確認Warrants的估計公允價值，並在權益中記錄，相關的抵消項應記錄在(i)與貸款相關的其他收入（費用）和(ii)顧問和諮詢師的營業費用中的股票激勵補償。此外，對於與貸款相關並在發行時尚未完全歸屬的任何Warrants，債務發行的公允價值在設定期限內攤銷。根據以下描述，股權分類Warrants的估計公允價值是利用Black-Scholes Merton模型確定的。對於帶有看跌期權的Warrants，公司在其簡明合併資產負債表中記錄了相應的負債，如上所述。
此外，公司具有與業務合併完成相關的公共Warrants和私人Warrants。 它們被視爲權益分類工具，如下所述。
使用Black-Scholes Merton模型要求管理層做出以下假設：
預期 波動性公司通過評估同行業公司的平均歷史波動率來估算髮行的Warrants的波動性，這一評估的時間段等於Warrants的預期期限。
預期 期限: 依據發行的Warrants的生命週期，基於簡化的方法，這本質上是歸納法均值 的歸屬期和合同期限。
無風險 利率: 無風險利率是基於當前可用於美國國債零息票發行的隱含收益率， 其期限等於授予日時Warrants的預期期限。
分紅 收益率截至目前，公司尚未宣告或支付分紅派息，也不預計會宣告分紅派息。因此，分紅派息收益率被估計爲零。
公允價值在必要服務期內按直線法確認，但如果授予的權益更早歸屬，則按加速方式確認。由於時常發生的放棄，管理層需做出其他一系列假設，包括基礎股份的波動性、無風險利率以及預計的分紅派息。預計的波動性基於一組可比較的上市公司在一段時間內的歷史股份波動性，該時間段等於授予的預計期限。
在業務組合之前，Legacy Ocean對其普通股的公平價值進行了估計，考慮了包括第三方估值公司爲其普通股準備的近期估值在內的其他因素，以及Legacy Ocean在之前向SEC提交的關於其普通股擬IPO的文件中所列出的價格，該IPO未被Legacy Ocean追求。2022年9月，在執行業務組合協議時，第二街Warrants的價值基於AHAC的A級普通股在授予日期的納斯達克全球精選市場上的收盤價。
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在業務合併完成後，公司發行的Warrants的價值基於授予日期在納斯達克資本市場上報告的普通股收盤價。公司根據這些價值估計公允價值，使用布萊克-肖爾斯-梅頓模型，該模型主要受Warrants的存續期、基礎股票的波動性、無風險利率和預期分紅的影響。預期波動性是根據一組可比上市公司在與Warrants的預期期限相同的時間段內的歷史股票波動性計算得出的。無風險利率是通過參考授予Warrants時生效的美國國債收益率曲線來確定的，時間段大約等於Warrants的預期期限。預計的分紅收益率爲零，因爲公司從未支付現金分紅，並且在可預見的未來也不預期支付任何現金分紅。公司將Warrants和基於股票的獎勵金額在其簡明合併經營報表中的其他收入（費用）和基於股票的補償內的營業費用中列爲費用。
第二 街 Warrants
關於附註6中討論的第二街貸款， 開空期貸款協議公司共發行了八份Warrants
可購買總計的
與三月第二街貸款相關的Warrants已經發行，可以行使爲
McKra 投資III認購權證
關於在註釋6中討論的麥克拉貸款， 短期貸款協議， 公司發放了一個可行使的認股權證，購買
特種 部隊 F9 逮捕令
在
與公司與特種部隊於2023年3月19日簽發給特種部隊的戰略諮詢協議有關
強制出示購買令
在2023年第一季度，$的全部金額被確認爲收益。
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SPA Warrants
在與艾爾頓可轉換票據融資相關的過程中，公司向一位合格投資者發行了一份可行使的認股權證，
公開 和私人認股權證
公司共有
每個 完整的IPO Warrants使註冊持有者有權按$的價格購買一股普通股， 根據基礎協議中討論的條款，自業務合併完成後30天起，任何時候均可調整。然而， 除非公司擁有有效且當前的註冊聲明，涵蓋在行使IPO Warrants時可發行的普通股，否則IPO Warrants不可兌換現金。
公司可以按總額而非部分贖回首次公開募股Warrants，贖回價格爲$ 每個warrant:
| ● | 在權證變得可行使後，隨時可以進行操作； | |
| ● | 在向每位權證持有人發送不少於30天的書面贖回通知後； | |
| ● | 如果且僅當普通股的最後成交價等於或超過$ 每股（經過拆股並股、送轉、重組和資本重組調整後），在權證變得可行使並在贖回通知發給權證持人之前的30個交易日內的任意20個交易日； | |
| ● | 僅當與該等權證所對應的普通股的當前註冊聲明有效時。 |
在通知贖回的指定日期之前，行使權利將會被取消，除非行使IPO Warrants。在贖回日期及之後，IPO Warrant的記錄持有者將不再享有任何權利，僅有在交還該Warrant時獲得贖回價格的權利。如果公司如上所述召回IPO Warrants，其管理層將有權要求所有希望行使Warrants的持有人以「無現金方式」進行行使。在這種情況下，每個持有人將通過交還Warrants換取相當於將（x）Warrants所對應的普通股股份數與Warrants的行使價格與「公平市場價值」（下文定義）之間的差值乘積再除以（y）公平市場價值的股份數，從而支付行使價格。爲此，「公平市場價值」應指截止到贖回通知發送給Warrants持有者前第三個交易日的五個交易日的普通股平均最後成交價格。
出於會計目的，公司根據ASC 480-10-25-8和ASC 815-40中包含的指導， (i) 處理IPO Warrants，並且 (ii) 將其分類爲權益工具。IPO Warrants的公允價值被視爲分紅派息進行會計處理。由於確認IPO Warrants公允價值的分錄在額外實收資本內相互抵消，因此對壓縮合並基本報表沒有固有影響。
額外 分享考慮
根據2023年3月7日公司與Outside The Box Capital（"OTBC"）之間簽署的營銷服務協議，
公司向OTBC發行了 的普通股股份作爲對價，依據營銷服務協議，在2023年第二季度。此次股票發行的公允價值爲$
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公司使用歸屬於股東的淨虧損和每個時期公司流通的普通股加權平均股數計算基本每股虧損，減去根據備用協議需回購的股份。稀釋每股收益包括根據已發行的股票期權和股票獎勵的行使可能產生的股份，其中這些工具的轉換會導致稀釋。公司的潛在稀釋證券，包括股票期權、收益期股份及購買普通股的Warrants，已被排除在稀釋淨虧損每股計算之外，因爲這會減少每股淨虧損。因此，用於計算歸屬於公司股東的基本和稀釋淨虧損每股的普通股加權平均股數是相同的。
截至三個月 9月30日 | 九個月結束 9月30日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 分子： | ||||||||||||||||
| 淨虧損 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| 分母： | ||||||||||||||||
| 普通股加權平均流通股，基本和稀釋 | ||||||||||||||||
| 每股普通股的淨虧損，基本和稀釋 | $ | ) | $ | ) | $ | ) | $ | ) | ||||||||
三個月結束 9月30日 | 九個月結束 9月30日 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 股票期權 | ||||||||||||||||
| 購買普通股的認股權證 | ||||||||||||||||
如 在備註3中討論的， 業務合併和支持協議，Legacy Ocean 還可以獲得最多額外的 公司的普通股股份，以下簡稱爲收益股。這些收益股受到某些在關閉成立36個月週年到期的績效條件的限制。截至2024年9月30日，這些條件均未滿足。
12. 許可和製造業-半導體協議
Elkurt/Brown 許可協議
在 2020年，公司與Elkurt, Inc.（"Elkurt"）簽署了四份獨佔許可協議（「初始布朗許可協議」），該公司是布朗大學的被許可方，這些協議隨後在2021年和2022年進行了修訂。Elkurt是一家由公司科學聯合創始人及董事會成員組成的公司，Jack A. Elias萬.D.，前醫學院院長及現布朗大學健康事務特別顧問，以及Jonathan Kurtis萬.D., PhD，布朗大學病理學和實驗醫學系主任。根據初始布朗許可協議，Elkurt授予公司獨佔的、有版權費的專利權許可，以及非獨佔的、有版權費的專有技術許可，僅用於製造、委託製造、市場營銷、銷售、使用和銷售許可產品，適用於某些領域。
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對於每個初始布朗許可協議（修訂版），
公司還需向Elkurt支付每份初始棕色許可協議的開發和商業化里程碑付款，金額範圍爲$
每一份初始布朗許可協議的合同期限（經修訂）持續到以下日期中的較晚者：（i）最後一項有效索賠到期的日期或（ii）十年。任何一方可在特定情況下終止每一份初始布朗許可協議，包括Elkurt可以在2024年5月1日之後的任何時間和出於任何理由終止初始布朗許可協議，如上所述。對於腫瘤項目，三份許可協議已經轉許可給公司的子公司海洋ChitoRx Inc，對於纖維化項目，一份許可協議已轉許可給公司的子公司海洋ChitofibroRx Inc。
布朗 反PfGARP小分子許可協議
在2022年9月13日，公司與Elkurt簽訂了額外的獨家許可協議（「棕色抗PfGARP小分子許可協議」）。根據棕色抗PfGARP小分子許可協議，Elkurt授予公司一項獨家、帶有版稅的專利權許可以及一項非獨家、帶有版稅的知識產權許可，僅用於製造、委託生產、營銷、銷售、使用和出售許可產品，以用於瘧疾研究領域。
對於Brown Anti-PfGARP小分子許可協議，
公司還將根據Brown Anti-PfGARP小分子許可證協議向Elkurt支付開發和商業化里程碑款項，金額範圍爲$
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請參閱 註釋13， 關聯方交易，以獲取關於公司與Elkurt關係的更多詳細信息。
羅德島 許可協議
在2021年1月， 公司與Elkurt（羅德島醫院的被許可方）簽訂了一份獨佔許可協議（「羅德島許可協議」），並在那一年進行了修訂。根據修訂後的羅德島許可協議，Elkurt向公司授予了一項獨佔的、有特許權的專利權許可和一項非獨佔的、有特許權的專有技術許可，僅用於製造、委託製造、市場推廣、提供銷售、使用和出售用於某個領域的被許可產品。
關於羅德島許可證協議，
在成功商業化後，根據協議條款，
羅德島許可協議的合同期限始於2020年2月1日，將持續到以下任意一個日期：(i) 最後有效索賠到期的日期，或 (ii) 十五年。任一方在Certain情況下可以終止羅德島許可協議，正如上面所討論的，許可協議的後續步驟仍在談判中。羅德島許可協議已被分許可給公司的子公司，海洋思霍馬公司。
請參閱 註釋13， 關聯方交易，以獲取關於公司與Elkurt關係的更多詳細信息。
開發 和製造服務協議
In December 2020, the Company entered into a Development and Manufacturing Services Agreement with Lonza AG and affiliate Lonza Sales AG (“Lonza”). The Company engaged Lonza pursuant to the development and manufacture of certain products and services along with the assistance in developing the product OCX-253. The agreement outlines the pricing for services and raw materials as incurred and payment terms.
The Development and Manufacturing Services Agreement will terminate on December 31, 2025. Either party may terminate the agreement within 60 days after it becomes apparent to either party that it will not be possible to complete the services for a scientific or technical reason after a good faith effort is made to resolve such problems. The agreement may be terminated by either party, immediately for any uncured material breach, insolvency, or liquidation. In the event of termination, the Company will pay Lonza all costs incurred through the termination date.
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13. Related Party Transactions
License Agreements with Elkurt, Inc.
Elkurt/Brown & Rhode Island Hospital Licenses
The Company is party to the License Agreements between Elkurt and Brown and the License Agreements between Elkurt and Rhode Island Hospital (see Note 12 Licensing and Manufacturing Agreements above). Elkurt is a company formed by the Company;s scientific co-founders Jack A. Elias, M.D., former Dean of Medicine and current Special Advisor for Health Affairs to Brown University, and Jonathan Kurtis, M.D., PhD, Chair of the Department of Pathology and Laboratory Medicine at Brown University. Dr. Elias and Dr. Kurtis are members of the Company’s Board.
Transactions with Legacy Ocean’s Founder and Executive Chairman
The
Legacy Ocean founder and executive chairman had paid certain expenses on behalf of the Company. He is reimbursed when the Company has
sufficient working capital to do so. As of September 30, 2024, the amount due for these expenses was $
Transactions with Chief Accounting Officer
The
Company’s Chief Accounting Officer previously provided consulting services to Legacy Ocean through RJS Consulting, LLC, his wholly
owned limited liability company, through June 15, 2021, before becoming the Company’s Chief Accounting Officer. As of September
30, 2024 and December 31, 2023, the Company owed RJS Consulting, LLC $
Transactions with Virion
As
discussed in Note 9 – Equity, the Company entered into the Contribution Agreement with Virion on October 11, 2023, resulting
in the Company acquiring a
14. Subsequent Events
Management has evaluated subsequent events to determine if events or transactions occurring through the filing date of this Quarterly Report on Form 10-Q require adjustments to or disclosures in the Company’s condensed consolidated financial statements. Aside from the items discussed below, the Company did not have any subsequent events that required recognition or disclosure in the condensed consolidated financial statements for the nine months ended September 30, 2024.
Virion Agreement
In
September 2024, the Company entered into an amendment to the contribution agreement with Virion, which was ratified and approved by the
Board of Directors of the Company on October 11, 2024. In the amendment, the Company agreed to contribute up to $
Notice from Nasdaq regarding Nasdaq Listing Requirement for Annual Meeting
On January 7, 2025, the Company received a notice from Nasdaq that since the Company had not yet held an annual meeting of shareholders within twelve months of the Company’s fiscal year ended December 31, 2023, it no longer complies with the Listing Rules (the “Rules”) for continued listing.( Listing Rules 5620(a) and 5810(c)(2)(G)). Accordingly, this matter serves as an additional basis for delisting the Company’s securities from The Nasdaq Stock Market. This is formal notification that the Nasdaq Hearings Panel (the “Panel”) will consider this matter in their decision regarding the Company’s continued listing on The Nasdaq Capital Market. In that regard, the Company should present its views with respect to this additional deficiency to the Panel in writing no later than January 14, 2025. The Company plans on holding its annual meeting within the next 60 days.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with Ocean Biomedical, Inc.’s (the “Company,” “Ocean Biomedical,” “we,” “us” and “our”) condensed consolidated financial statements and related notes included elsewhere in this Report and the audited consolidated financial statements and related notes thereto included in Exhibit 99.2 our Amendment No. 2 to Form 8-K filed with the SEC on March 31, 2023. The information contained in this discussion and other parts of this Report include forward-looking statements that involve risks, uncertainties, and assumptions in our business plans, strategy, and related financing. Our actual results could differ materially from the results discussed in or implied by these forward-looking statements. Factors that could contribute or cause such differences include, but are not limited to, the information below and the information discussed in the section titled “Cautionary Note Regarding Forward-looking Statements.”
On February 14, 2023, we consummated a business combination (the “Business Combination”) pursuant to that certain Agreement and Plan of Merger, dated August 31, 2022, as amended on December 5, 2022 by Amendment No. 1 (as amended, the “Business Combination Agreement”), by and among Ocean Biomedical, Inc., formerly known as Aesther Healthcare Acquisition Corp. (the “Company”), AHAC Merger Sub, Inc., a Delaware corporation, Aesther Healthcare Sponsor, LLC (the “Sponsor”), in its capacity as purchaser representative, Ocean Biomedical Holdings, Inc., formerly known as Ocean Biomedical, Inc., a Delaware corporation (“Legacy Ocean”), and Dr. Chirinjeev Kathuria, in his capacity as seller representative. In connection with the closing of the Business Combination (the “Closing”), the Company changed its name from “Aesther Healthcare Acquisition Corp.” to “Ocean Biomedical, Inc.” References to the “Company”, “Ocean Biomedical”, “we”, “us” and “our” refer to the Legacy Ocean prior to the Closing of the Business Combination and Ocean Biomedical, Inc., formerly known as Aesther Healthcare Corp., on a consolidated basis with Legacy Ocean, for periods after the Closing of the Business Combination.
Overview
We are a biopharmaceutical company that seeks to bridge the “bench-to-bedside” gap between medical research discoveries and patient solutions. We do this by leveraging our strong relationships with research universities and medical centers to license their inventions and technologies with the goal of developing them into products that address diseases with significant unmet medical needs. We believe that our differentiated business model positions us to capture inventions created at these institutions that might otherwise fail to be commercialized to benefit patients. Our team of accomplished scientists, business professionals and entrepreneurs bring together the interdisciplinary expertise and resources required to develop and commercialize a diverse portfolio of assets. We are organized around a licensing and subsidiary structure that we believe will enable us to create mutual value both for us and potential licensing partners. We believe this structure, combined with the professional networks of our leadership team members, allows us to opportunistically build a continuous pipeline of promising product innovations through our existing and potential future relationships with research institutions.
Our goal is to optimize value creation for each of our product candidates, and we intend to continuously assess the best pathway for each as it progresses through the preclinical and clinical development process—including through internal advancement, partnerships with established companies and spin-outs or other strategic transactions—in order to benefit patients through the commercialization of these products. Our current active assets are licensed from Brown University and Rhode Island Hospital. Our scientific co-founders and members of our Board of Directors (“Board”), Dr. Jack A. Elias and Dr. Jonathan Kurtis, are both affiliated with Brown University and with Rhode Island Hospital. Our strategy is to accelerate the flow of the academic discoveries and the required clinical development required for these product candidates and advance them commercially. The number of potential opportunities at research universities and medical centers is large, but only a small fraction of these opportunities is currently tapped in the market. The gap remains wide and we believe this presents an attractive opportunity for us to become an industry leader by addressing a need to accelerate the advancement of therapeutics that can address significant unmet medical needs. The core elements that we believe differentiate our business model include:
| ● | Harnessing inventions and technologies from research universities and medical centers. We are experienced at identifying and sourcing breakthrough discoveries at academic and research institutions, including our current partnerships with Brown University and Rhode Island Hospital. |
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| ● | Developing new drug therapies through an operationally efficient, evidence-based and milestone- driven approach. Once we select an asset for development, we pursue what we believe are appropriate development strategies that we aim to execute efficiently by leveraging contract research organizations (“CROs”) and contract manufacturing organizations (“CMOs”), and other drug development experts and consultants. |
| ● | Building a diverse portfolio of product candidates. We are evidence-based and program agnostic, meaning that our resources are driven strictly by program progress and milestone achievements. Our approach is to develop multiple diverse programs in parallel which mitigates business risk. |
| ● | Providing attractive economic upside to our partners at research universities and medical centers. We have a structure wherein our parent company houses each program in a subsidiary. We believe this structure is optimal to provide attractive economic incentives to the discovering institution and its researchers. |
| ● | Employing a multi-disciplinary approach to drug discovery and development across our programs. Our business model is based on bringing together the appropriate disciplines and expertise needed for each of our programs and leveraging learnings across programs and disease areas. |
| ● | Exploiting multiple commercialization options to maximize each program’s value. Throughout the development of our product candidates, we plan to continually assess that program’s potential paths to market, and we will endeavor to identify and maximize commercial value through various options, including internal advancement, partnerships with established companies, and spin-outs or other strategic transactions. |
| ● | Leadership team comprised of academic, scientific and business innovators. We have assembled an industry-leading, multi-disciplinary team consisting of physicians, scientists and business leaders with significant experience in progressing product candidates from early-stage research through clinical trials, regulatory approval and ultimately to commercialization. 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 $5.5 million and $14.1 million for the three months ended September 30, 2024 and 2023, respectively, and $9.8 million and $97.6 million for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024 and December 31, 2023, we had a stockholders’ deficit of $98.1 million and $90.8 million, respectively. Our current liabilities are $33.6 million and $30.0 million as of September 30, 2024 and December 31, 2023, 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.
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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, but not limited to, new technological innovations, protection of proprietary technology, dependence on key personnel, compliance with government regulations, and the ability to obtain additional capital to fund operations. Our therapeutic products will require significant additional research and development efforts, including preclinical and clinical testing and regulatory approval prior to commercialization. These efforts require additional capital, adequate personnel and extensive compliance reporting capabilities. There can be no assurance that our research and development will be successfully completed, that adequate protection for our intellectual property will be obtained, that any products developed will obtain necessary government regulatory approval, or that any approved products will be commercially viable.
Basis of Presentation
The Company’s condensed consolidated financial statements were prepared in accordance with US GAAP. See Note 2, Basis of Presentation and Summary of Significant Accounting Policies, to our condensed consolidated financial statements for a full description of our basis of presentation.
Impacts Market Conditions on Our Business
Disruption of global financial markets and a recession or market correction, the ongoing military conflict between Russia and Ukraine and the related sanctions imposed against Russia, and other global macroeconomic factors such as inflation, could reduce the Company’s ability to access capital, which could in the future negatively affect our liquidity and could materially affect our business and the value of its common stock.
Business Combination Agreement with Aesther Healthcare Acquisition Corp.
Closing of Business Combination
On February 14, 2023, we consummated our previously announced Business Combination pursuant to the Business Combination Agreement, at which time AHAC Merger Sub Inc., a wholly-owned subsidiary of AHAC, merged with and into Legacy Ocean, with Legacy Ocean surviving the merger as a wholly-owned subsidiary of the Company. In connection with the Closing, the Company changed its name from “Aesther Healthcare Acquisition Corp.” to “Ocean Biomedical, Inc.”
In connection with the Closing (or immediately prior to, where indicated), among other things:
| ● | We became a SEC-registrant and our common stock and public warrants commenced trading on the Nasdaq Stock Market on February 15, 2023 under the symbols “OCEA” and “OCEAW,” respectively. |
| ● | We issued to the holders of Legacy Ocean’s securities as of immediately prior to the Closing approximately 23,355,432 shares of the Company’s Class A common stock (with a per-share value of $10.00) with an aggregate value equal to $233.6 million, as adjusted as required by the Business Combination Agreement to take into account net working capital, closing net debt and Legacy Ocean’s transaction expenses, in exchange for all of the issued and outstanding capital stock of Legacy Ocean. |
| ● | Holders of 5,570,965 shares of the Company’s Class A common stock elected to redeem their shares immediately prior to Closing of the Business Combination for a full pro rata portion of the trust account holding the proceeds from AHAC’s IPO. |
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| ● | 2,625,000 shares of AHAC’s Class B common stock held by the Sponsor were converted on a one-for-one basis into 2,625,000 shares of AHAC’s Class A common stock immediately prior to the Closing. |
| ● | AHAC issued an additional 1,365,000 shares of the Company’s Class A common stock prior to the Closing in consideration for the Sponsor obtaining extensions beyond the September 16, 2022 deadline to complete an initial business combination. |
| ● | The Backstop Parties purchased 3,535,466 shares of the Company’s Class A common stock prior to the closing that were not redeemed and are subject to the forward purchase provisions of the Backstop Agreement (the “Recycled Shares”). |
| ● | The Backstop Parties purchased an additional 1,200,000 shares of the Company’s Class A common stock prior to the Closing that were not redeemed (the “Share Consideration Shares”). |
| ● | We issued three warrants to Second Street Capital exercisable to acquire that number of shares of our common stock equal to the economic value of the Legacy Ocean warrants previously issued to Second Street Capital in exchange for the termination of the Legacy Ocean warrants. The new warrants are exercisable for a total of 511,712 shares of our common stock at an exercise price of $8.06 per share and 102,342 shares of our common stock at an exercise price of $7.47 per share. |
| ● | We issued to Polar 1,350,000 newly issued shares of our common stock that are subject to the forward purchase provisions of the Backstop Agreement. |
| ● | On February 15, 2023, one day following the Closing, we paid the Prepayment of $51.6 million to the Backstop Parties utilizing funds from AHAC’s trust account, pursuant to the terms of the Backstop Agreement, as discussed below. The total Prepayment includes $37.3 million from the purchase of the Recycled Shares and $14.3 million from the purchase of the Share Consideration Shares. As the $14.3 million was a netted transaction between us and Polar, only $37.3 million was actually paid out of the funds received from the trust account. |
| ● | Each share of AHAC’s Class A common stock was automatically reclassified into one share of the Company’s common stock, including the remaining shares of AHAC Class A common stock that were not redeemed. |
The Business Combination is accounted for as a reverse capitalization in accordance with U.S. GAAP. Under the guidance in ASC 805, Business Combinations, AHAC is treated as the “acquired” company for financial reporting purposes. See Note 3, Business Combination and Backstop Agreement, of our condensed consolidated financial statements included elsewhere in this Report for additional detail about the Business Combination and related transactions. The Liquidity and Capital Resources section below also includes further discussion of these transactions.
As a result of becoming a public company, we have begun, and will continue to need to hire additional staff and implement processes and procedures to address public company regulatory requirements and customary practices. We incurred and expect to continue to incur additional annual expenses for, among other things, directors’ and officers’ liability insurance, director fees and additional internal and external accounting, legal and administrative resources and fees.
Components of Our Results of Operations
Revenue
To date, we have not generated any revenue from any sources, including from product sales, and we do not expect to generate any revenue from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result in regulatory approval, or license agreements with third parties, we may generate revenue in the future from product sales. However, there can be no assurance as to when we will generate such revenue, if at all.
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Operating Expenses
Research and Development Expenses
To date, research and development expenses consist, or will consist, primarily of costs incurred for our research activities, including the development of our product candidates, as well as stock-based compensation. We expense research and development costs as incurred, which we expect will primarily include:
| ● | expenses incurred under our licenses and services agreements; |
| ● | Employee-related expenses, including salaries and benefits for personnel engaged in research and development functions; and |
| ● | expenses incurred for outside services with our CMO relating to the development of certain of our preclinical assets. |
We recognize external development costs based on an evaluation of the progress to completion of specific milestones using information provided to us by our service providers. This process involves reviewing open contracts and purchase orders, communicating with our personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs. Such amounts are expensed as the related goods are delivered or the related services are performed, or until it is no longer expected that the goods will be delivered or the services rendered.
Our direct external research and development expenses consist (or are expected to consist) primarily of external costs, such as fees paid to outside consultants, CROs, CMOs and research laboratories in connection with our preclinical development, process development, manufacturing and clinical development activities. Our direct research and development expenses also include fees incurred under license agreements. We have not allocated and do not expect to allocate employee costs, costs associated with our discovery efforts, laboratory supplies, and facilities, including depreciation or other indirect costs, to specific programs because these costs are or will be deployed across multiple programs and, as such, are not separately classified. We use internal resources primarily to conduct our research and discovery as well as for managing our preclinical development, process development, manufacturing and clinical development activities. These employees work across multiple programs and, therefore, we do not track their costs by program.
Research and development activities are key to our business model. Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later stage clinical trials. As a result, we expect that our research and development expenses will increase substantially over the next several years, which will include:
| ● | expenses incurred under our licenses and services agreements to conduct the necessary preclinical studies and clinical trials required to obtain regulatory approval; |
| ● | expenses incurred under agreements with CROs, that are primarily engaged in the oversight and conduct of our drug discovery efforts and preclinical studies, clinical trials and CMOs, that are primarily engaged to provide preclinical and clinical product for our research and development candidates; |
| ● | other costs related to acquiring and manufacturing materials in connection with our drug discovery efforts and preclinical studies and clinical trial materials, including manufacturing validation batches, as well as investigative sites and consultants that conduct our clinical trials, preclinical studies and other scientific development services; |
| ● | employee-related expenses, including salaries and benefits, and stock-based compensation expense for employees engaged in research and development functions; and |
| ● | costs related to compliance with regulatory requirements. |
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At this time, we cannot reasonably estimate or know the nature, timing and costs of the efforts that will be necessary to complete the preclinical and clinical development of any of our product candidates or when, if ever, material net cash inflows may commence from any of our product candidates. The successful development and commercialization of our product candidates is highly uncertain. This uncertainty is due to the numerous risks and uncertainties associated with product development and commercialization, including the following:
| ● | scope, progress, outcome and costs of our preclinical development activities, clinical trials and other research and development activities; |
| ● | ability to successfully in-license attractive product candidates from our partners; |
| ● | establishing an appropriate safety and efficacy profile with Investigational New Drug, or IND, enabling studies; |
| ● | successful patient enrollment in and the initiation and completion of clinical trials; |
| ● | the timing, receipt and terms of approvals from applicable regulatory authorities including the FDA and other non-U.S. regulators; |
| ● | the extent of any required post-marketing approval commitments to applicable regulatory authorities; |
| ● | establishing clinical and commercial manufacturing capabilities with third-party manufacturers in order to ensure that we or our third-party manufacturers are able to produce product successfully; |
| ● | development and timely delivery of clinical-grade and commercial-grade drug formulations that can be used in our clinical trials and for commercial launch; |
| ● | launching commercial sales of our product candidates, if and when approved, whether alone or in collaboration with others; |
| ● | maintaining a continued acceptable safety protocol of our product candidates following any approval; and |
| ● | significant and potential changing government regulations. |
Any changes in the outcome of any of these variables with respect to the development of our product candidates in preclinical and clinical development could mean a significant change in the costs and timing associated with the development of these product candidates, such as if the FDA or another regulatory authority were to delay our planned start of clinical trials or require us to conduct other clinical trials or testing beyond those that we currently expect or if significant delays in enrollment in any of our planned clinical trials occurred. Such delays or changes may require us to expend significant additional financial resources and time on the completion of clinical development of that product candidate.
General and Administrative Expenses
General and administrative expenses consist, or will consist, primarily of salaries and benefits, travel and stock-based compensation expense for personnel in executive, business development, finance, legal, human resources, information technology, pre-commercial and support personnel functions. General and administrative expenses also include direct and allocated facility-related costs, insurance costs, stock-based compensation, and professional fees for internal and external accounting services, legal, patent, consulting, investor and public relations.
We anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued research activities and development of our product candidates and prepare for potential commercialization activities. We also incur significantly increased accounting, audit, legal, regulatory, tax, compliance with Nasdaq and SEC requirements, and director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company. If and when we believe a regulatory approval of a product candidate appears likely, we anticipate an increase in payroll and other employee-related expenses as a result of our preparation for commercial operations as it relates to the sales and marketing of that product candidate.
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Income Taxes
Income taxes are recorded in accordance with FASB ASC 740, Income Taxes, which provides for deferred taxes using an asset and liability approach. We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse, and net operating loss, or NOL, carryforwards and research and development tax credit carryforwards. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We have recorded a full valuation allowance to reduce our net deferred income tax assets to zero. In the event we were to determine that we would be able to realize some or all of our deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would increase income in the period such determination was made. As a consequence, we have recorded no income tax expense nor benefit for all years presented.
Comparison of the Three and Nine months ended September 30, 2024 and 2023
| Three Months Ended September 30, | Nine months Ended September 30, | |||||||||||||||||||||||
| (in thousands) | 2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Research and development | $ | - | $ | 305 | $ | (305 | ) | $ | 26 | $ | 726 | $ | (700 | ) | ||||||||||
| General and administrative | 768 | 2,350 | (1,582 | ) | 2,019 | 10,148 | (8,129 | ) | ||||||||||||||||
| Total operating expenses | 768 | 2,655 | (1,887 | ) | 2,045 | 10,874 | (8,829 | ) | ||||||||||||||||
| Operating loss | (768 | ) | (2,655 | ) | 1,887 | (2,045 | ) | (10,874 | ) | 8,829 | ||||||||||||||
| Other income (expense) | (4,760 | ) | (11,432 | ) | 6,672 | (7,718 | ) | (86,736 | ) | 79,018 | ||||||||||||||
| Net loss | $ | (5,528 | ) | $ | (14,087 | ) | $ | 8,558 | $ | (9,763 | ) | $ | (97,610 | ) | $ | 87,847 | ||||||||
Operating Expenses
Research and development
Research and development expense for the three months ended September 30, 2024 decreased by $0.3 million, as compared to the three months ended September 30, 2023.
Research and development expense for the nine months ended September 30, 2024 decreased by $0.7 million, as compared to the nine months ended September 30, 2023.
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General and administrative
General and administrative expense for the three months ended September 30, 2024 decreased by $1.6 million, as compared to the three months ended September 30, 2023. The $1.6 million decrease was primarily driven by decreases of (i) $0.7 million in professional services, (ii) $0.6 million in salaries and wages, and (iii) $0.3 million in insurance and public relations.
General and administrative expenses for the nine months ended September 30, 2024 decreased by $8.1 million, as compared to the nine months ended September 30, 2023. The decrease of $8.1 million was primarily driven by decreases of (i) $5.5 million in professional services, (ii) $1.0 million in salaries and wages, (iii) $0.5 million in stock-based compensation, and (iv) $1.0 million in insurance and public relations.
Other Income (expense)
Other expense for the three months ended September 30, 2024 decreased by $6.7 million, as compared to the three months ended September 30, 2023. The decrease of $6.7 million was primarily driven by a $9.8 million decrease in the changes in fair values of the Fixed Maturity Consideration and Backstop Put Option Liability, partially offset by (i) $0.6 million related to loss on issuance of put options; (ii) $0.2 million expense related to the change in fair value of the Virion contribution liability, (iii) the net loss attributable to equity interest in Virion of $0.5 million and (iv) $1.8 million related to the loss on exchange of notes.
Other expense for the nine months ended September 30, 2024 decreased by $79.0 million, as compared to the nine months ended September 30, 2023. The decrease of $79.0 million was primarily driven by (i) a $45.8 million decrease in the changes in fair values of the Fixed Maturity Consideration and Backstop Put Option Liability, (ii) $0.2 million expense related to the change in fair value of the Virion contribution liability and certain charges incurred in the prior year period which are not recurring in the nine months ended September 30, 2024, such as (i) $13.6 million related to loss on extinguishment of debt, (ii) $12.7 million related to the share consideration shares issued during the nine months ended September 30, 2023, (iii) $1.9 million related to the issuance of warrants, (iv) $8.0 million in transaction costs, and (v) $2.2 million related to non-cash stock issuances. These decreases were partially offset by (i) $1.8 million related to the loss on exchange of notes; and(ii) $3.3 million related to our share of the net loss generated by Virion.
Liquidity and Capital Resources
Overview
Since our inception, we have incurred significant operating losses. We have not yet commercialized any products and we do not expect to generate revenue from sales of products for several years, if at all. We had no cash inflows from operating activities for the nine months ended September 30, 2024. Further, as of September 30, 2024, we had minimal cash and a working capital deficiency of $32.6 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, including possibly under the Common Stock Purchase Agreement, 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 2024. As of September 30, 2024 we received $1.4 million in cumulative proceeds from the Backstop Agreement.
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We borrowed $13.5 million in the first half of 2023, including the proceeds from the initial Note under the Ayrton Convertible Note Financing, the proceeds of which were used to pay the related-party loans and certain accrued expenses. We consummated the closing of the sale of the initial Note on May 25, 2023 for approximately $6.1 million, net of expenses and issuance costs, which we used to pay the remainder of our existing related-party loans and a portion of our existing short-term loans, totaling $1.6 million. In July 2024, we borrowed $1.0 million under the new 2024 Convertible Note. As of September 30, 2024, the principal of our remaining short-term loans outstanding was $15.6 million.
There is an economic disincentive for the Backstop Parties to sell shares of our common stock that are subject to the restrictions set forth in the Backstop Agreement unless our common stock is trading above $10.34 per share (as it relates to certain of the Backstop Parties) or $8.00 per share (as it relates to one of the Backstop Parties), which means that we need to assume that no cash will be returned to us pursuant to any sales under the Backstop Agreement unless our common stock is trading above $8.00 and one or more of our Backstop Parties are otherwise able to sell their shares. Based upon the level of funding that we receive from the foregoing sources, we will determine the amount of accrued expenses and contingency payments that we will seek to have our vendors further defer and how much we are able to spend on our operations. We have based these estimates on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we expect, in which case, we would need to raise more capital and sooner than expected. We cannot guarantee that we will be able to draw down additional loans under the Ayrton Convertible Note Financing or raise additional capital on reasonable terms or at all, that our common stock will trade above $8.00, permitting one of the Backstop Parties to sell shares under the Backstop Agreement, that our common stock will trade above $10.34, permitting the other Backstop Parties to sell shares under the Backstop Agreement, that the Backstop Parties will sell any shares of our common stock held by them or elect to terminate the Backstop Agreement in respect of those shares, or that our vendors will agree to further deferrals of payments due to them. Although the Common Stock Purchase Agreement provides that we have the right, but not the obligation to require White Lion to purchase, from time to time, up to $75.0 million in aggregate gross purchase price of Equity Line Shares, we are not required or permitted to issue any shares of our common stock under the Common Stock Purchase Agreement if such sale would result in White Lion owning more than 9.99% of our outstanding shares of common stock.
Effective October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”). The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed price “Purchase Notice” under the Common Stock Purchase Agreement at $7.00 per share if the market price for the Common Stock exceeds $9.00 per share. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock under the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.
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
We expect our expenses to increase substantially in connection with our ongoing activities, particularly as we advance the preclinical activities and clinical trials of our product candidates. In addition, we will incur additional ongoing costs associated with operating as a public company, including significant legal, accounting, compliance, investor relations and other expenses that we did not incur as a private company. The timing and amount of our operating expenditures will depend on our ability to:
| ● | advance preclinical development of our early-stage programs; |
| ● | manufacture, or have manufactured on our behalf, our preclinical and clinical drug material and develop processes for late state and commercial manufacturing; |
| ● | Obtain regulatory approvals for any product candidates that successfully complete clinical trials; |
| ● | establish a sales, marketing and distribution infrastructure to commercialize our product candidates for which we may obtain marketing approval and intend to commercialize on our own; |
| ● | hire additional clinical, quality control and scientific personnel; |
| ● | expand our operational, financial and management systems and increase personnel, including personnel to support our research and clinical development, manufacturing and commercialization efforts and our operations as a public company; and | |
| ● | obtain, maintain, expand and protect our intellectual property portfolio. |
We will require additional capital as we seek regulatory approval of our product candidates and if we choose to pursue in-licenses or acquisitions of other product candidates. If we receive regulatory approval for our product candidates, we expect to incur significant commercialization expenses related to product manufacturing, sales, marketing and distribution, depending on where we choose to commercialize. Because of the numerous risks and uncertainties associated with research, development and commercialization of biologic product candidates, we are unable to estimate the exact amount of our working capital needs.
Backstop Agreement
As discussed above, prior to Closing, on February 12, 2023, AHAC, Legacy Ocean and Vellar entered into an amended and restated OTC Equity Prepaid Forward Transaction, referred to herein as the Backstop Agreement. Concurrently, on February 13, 2023, AHAC, Vellar and Legacy Ocean entered into separate assignment and novation agreements (as amended as it relates to Polar on October 2, 2023), whereby Vellar assigned its rights and obligations to a portion of the shares of Class A common stock subject to the Backstop Agreement to Meteora and Polar. Further, the Backstop Agreement granted the Backstop Parties the right to purchase Additional Shares from us of up to an amount equal to the difference between the number of Recycled Shares and the maximum number of shares of 8,000,000.
On February 14, 2023, pursuant to the Backstop Agreement, (i) the Backstop Parties purchased 3,535,466 Recycles Shares of AHAC’s Class A common stock for $10.56 per share and (ii) pursuant to Polar’s exercise of its right to purchase Additional Shares, AHAC, Legacy Ocean and Polar entered into a subscription agreement pursuant to which Polar purchased 1,350,000 newly issued shares of our common stock at a per share purchase price of approximately $10.56 (the “Polar Subscription”). Under the Backstop Agreement, the Additional Shares are subject to the same terms as the Recycled Shares, including with regard to repayment and repurchase.
We agreed to purchase those shares from the Backstop Parties on a forward basis upon the “Maturity Date” (as amended, the third anniversary of the closing of the Business Combination, subject to certain acceleration provisions). The purchase price payable by us includes a prepayment in the amount of the redemption price per share (the “Prepayment”).
Subsequent to Closing, the Prepayment amount was equal to $51.6 million, consisting of $37.3 million for the Recycled Shares and $14.3 million for the Polar Subscription shares. As the $14.3 million was a netted transaction between us and Polar, only $37.3 million was paid out of the funds we received from AHAC’s trust account. This net impact from the payment outflow to Backstop Parties for the Backstop Agreement of $51.6 million and the proceeds inflow from the issuance of common stock pursuant to the Backstop Agreement and Polar Subscription of $14.3 million are reported in our condensed consolidated statement of cash flows.
At any time prior to the Maturity Date, the Backstop Parties may elect an optional early termination to sell some or all of the Recycled Shares in the open market. If the Backstop Parties sell any shares prior to the Maturity Date, the pro-rata portion of the Prepayment is due back to us. As of September 30, 2024, the Backstop Parties have sold 143,261 shares, for which we received net proceeds of $1.4 million, after paying related fees to the Backstop Parties. Depending on the manner in which the OTC Equity Prepaid Forward Transaction is settled, we may never have access to the full Prepayment.
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On May 23, 2023 we received an Equity Prepaid Forward Transaction - Valuation Date Notice (“Notice”) from Vellar stating that, due to our alleged failure to timely register the shares held by Vellar, Vellar has the right to terminate the Backstop Agreement as to their portion of the shares and Vellar is claiming it is entitled to receive Maturity Consideration (as defined in the Backstop Agreement) equal to $6.7 million, which at our discretion may be paid in cash or by offset to the shares currently held by Vellar. Management takes issue with multiple aspects of the Notice including, but not limited to, Vellar’s right to terminate their portion of the Backstop Agreement and their asserted Maturity Consideration calculation. As such, we are consulting with advisors and other parties and are considering the potential resources and remedies we may elect to pursue, and intend to assert our rights should this matter not be resolved. After a review of all applicable documents related to the Backstop Agreement, we believe our position with respect to the terms of the agreement and intent of the parties is supported by the Backstop Agreement and the facts and circumstances under which it was entered into. Further, given the early stage of this matter and the uncertainty inherent in litigation and investigations, the Company does not currently believe it is (i) probable to incur losses or (ii) possible to develop estimates of reasonably possible losses (or a range of possible losses) for this matter.
Refer to Note 3, Business Combination and Backstop Agreement, in our condensed consolidated financial Statements included elsewhere in this Report for further detail on the Backstop Agreement and Note 4, Fair Value Measurements, for further detail around the valuation of the Fixed Maturity Consideration and Backstop Put Option Liability.
Sponsor Promissory Notes and Ayrton Convertible Note Financing
Sponsor Promissory Notes
Upon consummation of the Business Consummation, we assumed two of AHAC’s loans, totaling $2.1 million, one of which accrued interest at 8% per annum and the other accrues interest at 15% per annum. Both were due within five days of Closing. $0.5 million was paid down at Closing, with the remaining paid down in May 2023 via the proceeds received from the initial Note under the Ayrton Convertible Note Financing, discussed below.
In connection with the assumption of AHAC’s loans and pursuant to the terms of the Business Combination Agreement described above, we issued 1,365,000 shares of our common stock to the Sponsor as consideration for providing the loans to us (the “Sponsor Extension Shares”). In addition, pursuant to the terms of an amendment entered into prior to the paydown of the loans, we issued a total of 200,000 shares of our common stock in exchange for extension of the maturity date of one of the loans.
We recognized a loss on extinguishment of debt of $1.2 million in our consolidated statements of operations for the nine months ended September 30, 2023 for the 200,000 shares issued in exchange for extensions of the maturity date, based on the grant date fair value of the shares issued. In addition, we recognized a loss on extinguishment of debt of $13.6 million in our condensed consolidated statements of operations for the nine months ended September 30, 2023 for the issuance of the Sponsor Extension Shares, based on the grant date fair value. Further, we recorded interest expense of $18 thousand and $36 thousand in our condensed consolidated statements of operations for the three and nine months ended September 30, 2023, respectively.
Ayrton Convertible Note Financing
In May 2023, we entered into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Investor”) for the sale of up to three Senior Secured Convertible Notes (each, a “Note” and collectively, the “Notes”), which Notes are convertible into shares of our common stock, in an aggregate principal amount of up to $27.0 million, in a private placement (the “Ayrton Convertible Note Financing”).
In May 2023, we consummated the closing for the sale of (i) the initial Note in the principal amount of $7.6 million and (ii) a warrant to initially acquire up to 552,141 additional shares of our common stock with an initial exercise price of $11.50 per share of common stock, subject to adjustment, exercisable immediately and expiring five years from the date of issuance (the “SPA Warrant”). Each Note will be sold at an original issue discount of 8%. Future issuances of Notes (“Additional Closings”) are subject to satisfaction of certain conditions. At the closing of the first Additional Closing, $8.64 million in principal amount of Notes will be issued and $10.8 million in principal amount of Notes will be issued at the closing of the second Additional Closing. So long as any Notes remain outstanding, we and each of our subsidiaries are prohibited from effecting or entering into an agreement to effect any subsequent placement involving a Variable Rate Transaction, as defined within the SPA, other than pursuant to the White Lion Common Stock Purchase Agreement.
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We were required to obtain stockholder approval authorizing the issuance of our common stock under the Notes and Warrant in compliance with the rules and regulations of the Nasdaq (without regard to any limitations on conversion or exercise set forth in the Notes or Warrant, respectively), including, shares of our common stock to be issued in connection with any Additional Closing. We obtained stockholder approval of the transaction in August 2023 at a special meeting of stockholders. As a result, there is no limitation under the SPA that would prohibit us from issuing to the investor shares of common stock in excess of 19.99% of our outstanding shares of common stock as of the date of the SPA.
The interest rate applicable to each Note is, as of any date of determination, the lesser of (i) 8% per annum and (ii) the greater of (x) 5% per annum and (y) the sum of (a) the “secured overnight financing rate,” which from time to time is published in the “Money Rates” column of The Wall Street Journal (Eastern Edition, New York Metro), in effect as of such date of determination and (b) 2% per annum. Each Note will mature on the first anniversary of its issuance. Additionally, each Note is required to be senior to all of our other indebtedness, other than certain permitted indebtedness. The Notes will be secured by all of our existing and future assets (including those of our significant subsidiaries). Upon the occurrence of certain events, the Notes will be payable in monthly installments. A noteholder may, at its election, defer the payment of all or any portion of the installment amount due on any installment date to another installment payment date.
All or any portion of the principal amount of each Note, plus accrued and unpaid interest is convertible at any time, in whole or in part, at the noteholder’s option, into shares of our common stock at an initial fixed conversion price of $10.34 per share, subject to certain adjustments and alternative conditions. A noteholder will not have the right to convert any portion of a Note, to the extent that, after giving effect to such conversion, the noteholder (together with certain of its affiliates and other related parties) would beneficially own in excess of 9.99% of the shares of our common stock outstanding immediately after giving effect to such conversion. Upon a change of control, noteholders may require us to redeem all, or any portion, of the Notes at a price stipulated by certain conditions as discussed within the SPA.
The Notes provide for certain events of default, including, among other things, any breach of the covenants described in the SPA and any failure of Dr. Chirinjeev Kathuria to be the chairman of our Board of Directors. In connection with an event of default, the noteholders may require us to redeem all or any portion of the Notes, at a premium set forth in the SPA.
We are subject to certain customary affirmative and negative covenants regarding the rank of the Notes, the incurrence of indebtedness, the existence of liens, the repayment of indebtedness and the making of investments, the payment of cash in respect of dividends, distributions or redemptions, the transfer of assets, the maturity of other indebtedness, and transactions with affiliates, among other customary matters. We are also subject to financial covenants requiring that (i) the amount of our available cash equal or exceed $3.0 million at the time of each Additional Closing; (ii) the ratio of (a) the outstanding principal amount of the Notes, accrued and unpaid interest thereon and accrued and unpaid late charges to (b) our average market capitalization over the prior ten trading days, not exceed 35%; and (iii) at any time any Notes remain outstanding, with respect to any given calendar month (each, a “Current Calendar Month”) (x) the available cash on the last calendar day in such Current Calendar Month shall be greater than or equal to the available cash on the last calendar day of the month prior to such Current Calendar Month less $1.5 million.
Short-Term Loans
Refer to Note 6, Short-Term Loans, in Part I, Item 1. “Financial Statements” for additional detail about our short-term loans and the warrants issued in conjunction with these loans.
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Equity Financing
Common Stock Purchase Agreement
Following the Business Combination, we are subject to the terms and conditions of (i) a common stock purchase agreement, dated September 7, 2022, and as amended on October 4, 2023, (the “Common Stock Purchase Agreement”) and (ii) a registration rights agreement, dated September 7, 2022 (the “White Lion Registration Rights Agreement”), that AHAC entered into with White Lion Capital LLC (“White Lion”). Pursuant to the Common Stock Purchase Agreement, we have the right from time to time at its option to sell to White Lion up to $75.0 million in aggregate gross purchase price of newly issued shares (“Equity Line Shares”) of our common stock, subject to certain limitations and conditions set forth in the Common Stock Purchase Agreement. These limitations stipulate, among other things, that we may not sell, and White Lion may not purchase, shares of our common stock that would result in White Lion owning more than 9.99% of our outstanding common stock. The Common Stock Purchase Agreement expires after two years.
In consideration for the commitments of White Lion to purchase Equity Line Shares, the Common Stock Purchase Agreement included issuing initial commitment shares with a value of $0.8 million based upon the closing sale price two days prior to the filing of the initial registration statement.
In April 2023, the Common Stock Purchase Agreement was amended to fix the number of initial commitment shares at 75,000 shares to White Lion, which had a fair value of $0.5 million upon issuance. The $0.5 million in commitment costs were recorded in other income (expense) in our condensed consolidated statements of operations.
Effective October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”). The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed price “Purchase Notice” under the Common Stock Purchase Agreement [at $7.00 per share if the market price for the Common Stock exceeds $9.00 per share]. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock under the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.
Any future proceeds earned from the sale of shares will be used to support funding of our ongoing operations and working capital.
Other Commitments
License Fees
Our contractual obligations are expected to have an effect on our liquidity and cash flows in future periods. Under our license agreements with our academic research institution partners, fixed license maintenance fees of $0.3 million are due within 15 days of financing of at least $10.0 million and $0.1 million are due within 30 days of financing of at least $10.0 million. In addition, under these license agreements, we are also required to make payments upon successful completion and achievement of certain milestones as well as royalty payments upon sales of products covered by such licenses. The payment obligations under the license fees are recorded in accounts payable. The payment obligations under the collaboration agreements are contingent upon future events such as our achievement of specified development, clinical, regulatory, and commercial milestones. As the timing of these future milestone payments are not known, we have not included these fees in our condensed consolidated balance sheets as of September 30, 2024. None of these were paid as of September 30, 2024.
Refer to Note 12, License and Manufacturing Agreements, in Part I, Item 1. “Financial Statements” for further detail around timing of license fees due.
Contingent Compensation and Other Contingent Payments
Under the management employment agreements, we have salaries and bonuses that are contingently payable upon financing, collectively called contingent compensation, that are contingently payable based only upon our first cumulative capital raise of at least $50.0 million. As of September 30, 2024, we have contingent compensation and bonuses in the amount of $14.8 million to certain members of senior management as well as $1.0 million in contingent vendor payments. These amounts will not be paid if the contingencies do not occur. Since the payment of obligations under the employment agreements are contingent upon these future events, which are not considered probable as such future events are deemed outside of our control, we have not included these amounts in our condensed consolidated financial statements. None of these were paid as of September 30, 2024.
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Development and Manufacturing Services Agreement
We have entered and anticipate we will continue to enter into contracts in the normal course of business with external organizations such as CMOs, CROs and other third parties for the manufacture of our product candidates and to support clinical trials and preclinical research studies and testing. We expect that these contracts will be generally cancelable by us, and we anticipate that payments due upon cancellation will consist only of payments for services provided or expenses incurred, including noncancelable obligations of our service providers, up to the date of cancellation. We accrued CMO services in the amount of $0.6 million for the three and nine months ended September 30, 2024 and 2022 under the Development and Manufacturing Services Agreement with Lonza in developing the product OCX-253.
Cash Flows
To date, we have not generated any revenue. Cash flows to date have resulted from financing activities, including payments made on behalf of the Company by related parties and net proceeds from issuance of shares of common stock consisting of friends and family of our employees and short-term borrowings, including the initial Note from the Ayrton Convertible Note Financing. As of September 30, 2024, our unrestricted cash balance was minimal and our restricted cash balance of $0.2 million is held in an escrow account. We do not have any cash equivalents. Cash used in operating activities was primarily used to pay legal and accounting fees. Our outstanding accounts payable and accrued expenses of $16.6 million as of September 30, 2024 will be paid off utilizing future proceeds from current and future financings, including proceeds from additional closings under the 2024 Convertible Note and future debt and equity financings.
Critical Accounting Estimates
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. The preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, costs and expenses. We base our estimates on historical experience, known trends and events, and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are described in more detail in Note 2, Summary of Significant Accounting Policies, to our condensed consolidated financial statements appearing elsewhere in this Report, we believe that the following accounting policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements.
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Valuation Methodologies
Valuation of Backstop Put Option Liability and Fixed Maturity Consideration
We utilized a Monte-Carlo simulation to value the Backstop Put Option Liability and Fixed Maturity Consideration. The key inputs and assumptions used in the Monte-Carlo Simulation, including volatility, expected term, expected future stock price, and various simulated paths, were utilized to estimate the fair value of the associated derivative liabilities. The value of the Backstop Put Option Liability and Fixed Maturity were calculated as the average present value over 50,000 simulated paths. We measure the fair value at each reporting period, with subsequent fair values to be recorded within other income (expense) in our condensed consolidated statements of operations.
Valuation of 2023 Convertible Note and SPA Warrant
We utilized a Monte-Carlo simulation at inception to value the 2023 Convertible Note and SPA Warrant. The Monte-Carlo simulation is calculated as the average present value over all simulated paths. The key inputs and assumptions used in the Monte-Carlo Simulation, including volatility, estimated market yield, the probability of various scenarios, including subsequent placement and change in control, and various simulated paths, were utilized to estimate the fair value of the associated liabilities. We will continue to measure the fair value at each reporting period, with subsequent fair values to be recorded within other income (expense) in our condensed consolidated statements of operations.
Valuation of the Ayrton Note Purchase Option
We utilized the Black-Scholes Merton model to value the Ayrton Note Purchase Option. The key inputs and assumptions used in the Black-Scholes Merton model, including volatility and risk-free rate, were utilized to estimate the fair value of the associated liability. We will continue to measure the fair value at each reporting period, with subsequent fair values to be recorded within other income (expense) in our condensed consolidated statements of operations.
Fair Values Accounting for Equity-Classified Warrants and Stock-Based Awards
We measure and record the expense related to warrants and stock-based awards based upon the fair value at the date of grant. We estimate the grant date fair value of each common stock option using the Black-Scholes Merton model, which requires the input of highly subjective assumptions and management’s best estimates. These estimates involve inherent uncertainties and management’s judgement. If factors change and different assumptions are used, our expense recognition could be materially different in the future.
Prior to September 2022, the value of the warrants issued was estimated considering, among other things, contemporaneous valuations for Legacy Ocean’s common stock prepared by unrelated third-party valuation firms and prices set forth in our previous filings with the SEC for a proposed IPO of our common stock that was not pursued by us (“Legacy Ocean IPO filings”). We used the mid-range price per share based upon our Legacy Ocean IPO filings. Starting in September 2022, following the execution of the Business Combination Agreement with AHAC, the value of the warrants was based on the closing price of AHAC’s Class A common stock as reported on the Nasdaq Global Select Market on the grant date.
Following the Closing of the Business Combination, the value of warrants and stock options issued by us was based on the closing price of our common stock as reported on the Nasdaq Capital Market on the grant date. As noted above, we estimate the fair value, based upon these values, using the Black-Scholes Merton model, which is affected principally by the life of the warrant, the volatility of the underlying shares, the risk-free interest rate, and expected dividends. Expected volatility is based on the historical share volatility of a set of comparable publicly traded companies over a period of time equal to the expected term of the warrants. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the warrant for time periods approximately equal to the expected term of the warrant. Expected dividend yield is zero based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future. We expense the amount for warrants and stock-based awards within other income (expense) and stock-based compensation, respectively, in our condensed consolidated statements of operations.
Recent Accounting Pronouncements
In August 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) — Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments, amends the guidance on derivative scope exceptions for contracts in an entity’s own equity, and modifies the guidance on diluted earnings per share calculations as a result of these changes. The Company early adopted ASU No. 2020-06 as of January 1, 2023, using a modified retrospective approach, noting the Company’s prior instruments would not be impacted by this adoption. The Company utilized the updated derivative guidance when accounting for the 2023 Convertible Note (as defined in Note 7, Senior Secured Convertible Notes).
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for public business entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adopting ASU 2023-07 on its consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. This standard is effective for the Company for fiscal years beginning after December 15, 2024 and can be applied on a prospective or retrospective basis. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements.
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Emerging Growth Company and Smaller Reporting Company Status
The Jumpstart Our Business Startups Act of 2012 permits an “emerging growth company” such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have elected to not “opt out” of this provision and, as a result, we will adopt new or revised accounting standards at the time private companies adopt the new or revised accounting standard and will do so until such time that we either (i) irrevocably elect to “opt out” of such extended transition period or (ii) no longer qualify as an emerging growth company.
We are also a “smaller reporting company” meaning that the market value of our stock held by non-affiliates is expected to be less than $700 million and our annual revenue was less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company at the time that we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide disclosure under this Item 3.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer (our principal executive officer and principal accounting/financial officer), we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Report. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that as of September 30, 2024, the design and operation of our disclosure controls and procedures were not effective at a reasonable assurance level.
In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Notwithstanding the conclusion by our Chief Executive Officer and Chief Financial Officer that our disclosure controls and procedures as of September 30, 2024 were not effective, and notwithstanding the identified material weaknesses, management, including our Chief Executive Officer and Chief Financial Officer, believes the financial statements included in this Report fairly represent in all material respects our financial condition, results of operations and cash flows at and for the periods presented in accordance with U.S. GAAP.
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Previously Identified Material Weaknesses
In connection with our preparation and the audits of our financial statements as of December 31, 2023, 2022, and 2021, we identified material weaknesses as defined under the Exchange Act, and by the Public Company Accounting Oversight Board (United States) in our internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s financial statements will not be prevented or detected on a timely basis. Specifically, our material weaknesses are that our management does not have adequate staffing in the accounting department and has not yet designed and implemented the appropriate processes and internal controls to support accurate and timely financial reporting. Management is working to implement remediation steps to improve our disclosure controls and procedures and our internal control over financial reporting, including the hiring of additional accounting personnel, such as Jolie Kahn as our Chief Financial Officer, and engaging consultants to assist management. Additionally, management plans to further develop and implement formal policies, processes and documentation procedures relating to financial reporting.
Management’s Plan to Remediate the Material Weaknesses
We have begun taking measures, and plan to continue to take measures, to remediate the material weaknesses. These measures include hiring or engaging additional accounting personnel with familiarity with reporting under U.S. GAAP, including hiring of Jolie Kahn as our Chief Financial Officer, engaging consultants to assist management, and implementing and adopting additional controls and formal policies, processes and documentation procedures relating to financial reporting. We plan to undertake recruitment efforts to identify additional accounting personnel, including possible use of third-party service providers. Remediation costs consist primarily of additional personnel expenses. We may identify additional material weaknesses in the future or otherwise fail to maintain proper and effective internal controls, which may impair our ability to produce accurate financial statements on a timely basis.
However, the implementation of these measures may not be sufficient to remediate the control deficiencies that may lead to material weaknesses in our internal control over financial reporting or to prevent or avoid potential future material weaknesses. Moreover, our current controls and any new controls that we develop may become inadequate in the future because of changes in conditions in our business. Furthermore, we may not have identified all material weaknesses and weaknesses in our disclosure controls and internal control over financial reporting may be discovered in the future. If we are unable to successfully remediate our existing or any future material weaknesses in our internal control over financial reporting, or if we identify any additional material weaknesses, the accuracy and timing of our financial reporting may be adversely affected, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting, and our share price may decline as a result.
We also could become subject to investigations by Nasdaq, the SEC, or other regulatory authorities. Any failure to develop or maintain effective controls or any difficulties encountered in its implementation or improvement could negatively impact our operating results or cause us to fail to meet its reporting obligations and may result in a restatement of our financial statements for prior periods, which could cause the price of our common stock and warrants to decline.
For more information concerning the material weaknesses identified and remediation steps, see the section titled “Risk Factors – We identified a material weakness in Legacy Ocean’s internal control over financial reporting. If our remediation of these material weaknesses are not effective, or if we experience additional material weaknesses or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately report our financial condition or results of operations” included in our Annual Report on Form 10-K, filed on November 25, 2024.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during the three months ended September 30, 2024, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II-OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. As of the date of this Quarterly Report on Form 10-Q, we were not a party to any material legal matters or claims except as set forth in our audited financial statements for the year ended December 31, 2023 in our Annual Report on Form 10-K for the year ended December, 31, 2023.
In the future, we may become party to legal matters and claims in the ordinary course of business, the resolution of which we do not anticipate would have a material adverse impact on our financial position, results of operations or cash flows except as set forth in our audited financial statements for the year ended December 31, 2023, in our Annual Report on Form 10-K for the year ended December, 31, 2023.
Item 1A. Risk Factors
In addition to those the risk factors set forth in Part I “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the year ended December, 31, 2023, and other reports we filed with the SEC, below are certain risk factors related to the Company and its operations.
Our level of indebtedness and significant debt service obligations could adversely affect our financial condition or our ability to fulfill our obligations, including the note issued in May 2023, and make it more difficult for us to fund our operations.
As of September 30, 2024, we had $15.6 million in principal 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, 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 our debt payment obligations, we may need to refinance or restructure our debt, sell assets, reduce or delay capital investments, or seek to raise additional capital. If we are unable to implement one or more of these alternatives, we may be unable to meet our debt payment obligations, which could have a material adverse effect on our business, results of operations, or financial condition.
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Despite our existing level of indebtedness, we may incur more indebtedness. This could further exacerbate the risks described above, including our ability to service our existing indebtedness.
We may be able to incur substantial additional indebtedness in the future. Although certain of our debt arrangements contain restrictions on the incurrence of additional indebtedness, such restrictions are subject to a number of qualifications and exceptions, and under certain circumstances indebtedness incurred in compliance with such restrictions could be substantial. To the extent new debt is added to our current debt levels, the risks described above would increase.
To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control.
Our ability to make payments on and to refinance our indebtedness, including our outstanding notes, and to fund intended research and development efforts will depend on our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory 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 dilution.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Unregistered Sales of Equity Securities
Set forth below is information regarding equity securities issued by us during the period covered by this Report that were not registered under the Securities Act. No underwriters were involved in the sales and the certificates (or book entry notations) representing the securities sold and issued contain legends restricting transfer of the securities without registration under the Securities Act or an applicable exemption from registration.
Issuances of Capital Stock
In connection with the loan modification agreement, dated March 22, 2023, between the Company and NPIC Limited (the “Loan Modification Agreement”), in August, 2023, we issued to NPIC Limited 50,000 shares of our common stock in exchange for a previous extension of the maturity date of the loan made pursuant to the Loan and Transfer Agreement between AHAC, the Sponsor and NPIC Limited dated December 13, 2022. This transaction was effected without registration under the Securities Act in reliance on the exemption from registration provided under Section 4(a)(2) of the Securities Act.
In August, 2023, we issued to the Investor 11,032 shares of our common stock as an interest payment under the 2023 Convertible Note. This transaction was effected without registration under the Securities Act in reliance on the exemption from registration provided under Section 4(a)(2) of the Securities Act.
In September, 2023, we issued to the Investor 13,445 shares of our common stock as an interest payment under the 2023 Convertible Note. This transaction was effected without registration under the Securities Act in reliance on the exemption from registration provided under Section 4(a)(2) of the Securities Act.
In October, 2023, we issued to the Investor 15,173 shares of our common stock as an interest payment under the 2023 Convertible Note. This transaction was effected without registration under the Securities Act in reliance on the exemption from registration provided under Section 4(a)(2) of the Securities Act.
The Company issued 39,650 shares of its common stock to the Investor during the fiscal year ended December 31, 2023 as interest payments.
In March 2024, the Company issued 169,582 restricted shares of its common stock in connection with the convertible portion of the Underwriter Promissory Note.
In May 2024, the Company issued 50,000 shares of its common stock to a vendor in satisfaction of certain of their outstanding invoices due.
Issuer Purchases of Equity Securities
We did not purchase any shares of our common stock during the quarter ended September 30, 2024.
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Item 6. Exhibits.
| * | Filed herewith. |
| ** | Furnished herewith. |
The certifications furnished in Exhibits 32.1 and 32.2 are deemed to accompany this Quarterly Report on Form 10-Q and are not deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, irrespective of any general incorporation language contained in such filing.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Ocean Biomedical, Inc. | ||
| Date: January 13, 2025 | By: | /s/ Michelle Berrey |
| Michelle Berrey | ||
| Chief Executive Officer | ||
| (Principal Executive Officer) | ||
| Date: January 13, 2025 | By: | /s/ Jolie Kahn |
| Jolie Kahn | ||
| Chief Financial Officer | ||
| (Principal Financial Officer) | ||
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