Ocean Biomedical Reports Net Income Turnaround and Decreased Operating Expenses for Q1 2024

Ocean Biomedical, Inc. reported a significant turnaround in its financial performance for the three months ended March 31, 2024, achieving a net income of $12.999 million compared to a net loss of $72.092 million for the same period in 2023. This improvement was primarily attributed to a gain recognized from changes in the fair value of the Backstop Put Option Liability and Fixed Maturity Consideration. The company’s total operating expenses decreased to $595,000 from $5.387 million in the prior year, driven by substantial reductions in both research and development expenses and general and administrative costs.

The company’s total assets as of March 31, 2024, were reported at $2.946 million, a decrease from $5.501 million at the end of the previous fiscal year. Current liabilities remained relatively stable at $30.109 million, compared to $30.013 million as of December 31, 2023. Notably, Ocean Biomedical's stockholders' deficit improved to $75.783 million from $90.763 million, reflecting a reduction in the accumulated deficit, which decreased from $196.055 million to $183.056 million.

Strategically, Ocean Biomedical has focused on enhancing its operational efficiency and reducing costs. The company has not generated any revenue from product sales since its inception and does not anticipate doing so in the near future. However, it is actively pursuing the development of its product candidates in oncology, fibrosis, and infectious diseases, with plans to move certain preclinical candidates into clinical trials within the next 12 to 24 months. The company’s workforce remains lean, with a headcount that has not been disclosed in the filing.

In terms of financing, Ocean Biomedical has relied on a combination of equity and debt to fund its operations. As of March 31, 2024, the company had minimal cash reserves of $19,000 and restricted cash of $500,000. The company has indicated a working capital deficiency of $28.3 million, raising concerns about its ability to continue as a going concern without additional funding. The company is exploring various financing options, including potential equity raises and collaborations, to support its ongoing research and development efforts.

Looking ahead, Ocean Biomedical's management has expressed optimism about its strategic direction but acknowledges the challenges of securing additional capital. The company is subject to various risks, including market conditions and the performance of its common stock, which could impact its ability to raise funds. The management team is committed to addressing these challenges while advancing its product development pipeline and improving its financial stability.