Ocean Biomedical Reports $5.5 Million Net Loss, Sees Decrease in Operating Expenses

Ocean Biomedical, Inc. reported a net loss of $5.5 million for the three months ended September 30, 2024, a significant decrease from the $14.1 million loss recorded in the same period of the previous year. For the nine months ended September 30, 2024, the company’s net loss was $9.8 million, down from $97.6 million in the prior year. The reduction in losses is attributed to a decrease in operating expenses, which fell to $768,000 from $2.7 million year-over-year for the quarter, and from $2.0 million to $10.9 million for the nine-month period. The company has not generated any revenue since its inception and continues to rely on external financing to fund its operations.

The company’s total current assets decreased to $1.0 million as of September 30, 2024, down from $2.1 million at the end of 2023. This decline was primarily due to a reduction in cash and prepaid expenses. Current liabilities increased to $33.6 million from $30.0 million, driven by higher accounts payable and accrued expenses. As of September 30, 2024, Ocean Biomedical reported a stockholders’ deficit of $98.1 million, compared to $90.8 million at the end of the previous fiscal year.

Strategically, Ocean Biomedical has focused on its partnership with Virion Therapeutics, acquiring a 50% membership interest in the company in October 2023. This investment is expected to enhance its capabilities in developing immunotherapy products. The company has also entered into a Backstop Agreement, which allows it to raise additional capital through the sale of shares, although it faces challenges in meeting the conditions for these transactions. The company’s stock has been under pressure, leading to concerns about compliance with Nasdaq listing requirements.

Looking ahead, Ocean Biomedical anticipates continued operating losses as it invests in research and development activities. The company has indicated that it will need to secure additional funding to support its operations and advance its product candidates through clinical trials. The management has expressed uncertainty regarding its ability to raise sufficient capital, which could impact its ability to continue as a going concern. The company is actively exploring various financing options, including equity and debt financing, to meet its future obligations and operational needs.