Ocean Biomedical Reports $9.5 Million Net Loss for Fiscal Year 2024, Sees Improvement from Previous Year

Ocean Biomedical, Inc. (OCEA) reported a net loss of $9.5 million for the fiscal year ended December 31, 2024, a significant improvement from the $114.5 million net loss reported in 2023. The company's accumulated deficit stood at $205.5 million as of December 31, 2024, compared to $196.1 million at the end of 2023. The improvement in net loss is attributed to a decrease in research and development expenses and general and administrative expenses, partially offset by changes in fair values of convertible notes and other liabilities. The company had no revenue for either period.

Significant changes in other income (expense) during 2024 included a $60.7 million decrease in changes in fair values of liabilities related to the Backstop Agreement, and a $4.4 million expense related to a change in fair value of a contribution liability. These decreases were partially offset by a $2.6 million increase in the change in fair value of convertible notes. The company's current liabilities totaled $33.9 million at the end of 2024, up from $30.0 million at the end of 2023. This increase is primarily due to increases in short-term loans.

During the year, Ocean Biomedical held its annual meeting of stockholders, where several proposals were approved, including the election of directors and the approval of a 2025 equity compensation plan. The company also reported material weaknesses in its internal control over financial reporting, primarily due to inadequate accounting department staffing and deficiencies in the review of third-party valuation deliverables. Remediation efforts are underway, including the hiring of a Chief Financial Officer.

Ocean Biomedical's pipeline consists of preclinical programs in oncology, fibrosis, and infectious diseases. The company anticipates moving certain preclinical product candidates into clinical trials within the next 12 to 24 months. As of December 31, 2024, the company employed seven full-time employees. The company relies heavily on third-party contract manufacturers and research organizations for manufacturing and clinical trial support.

The company's outlook indicates a continued need for substantial additional capital to finance operations and anticipates continued losses for the foreseeable future. The company's ability to continue as a going concern is dependent on its ability to secure additional funding. The company is exploring opportunities to expand into other technology-driven markets to generate revenue and fund its biotech development efforts.