Ocean Biomedical Reports $17.2 Million Net Loss for Q2 2024, Seeks Additional Funding

Ocean Biomedical, Inc. reported a net loss of $17.2 million for the three months ended June 30, 2024, compared to a loss of $11.4 million for the same period in 2023. For the six months ended June 30, 2024, the company recorded a net loss of $4.2 million, a significant decrease from the $83.5 million loss reported in the prior year. The company's total operating expenses for the second quarter were $682,000, down from $2.8 million in the previous year, primarily due to reduced general and administrative costs, which fell from $2.8 million to $682,000. Research and development expenses were negligible in the current quarter, compared to $28,000 in the same period last year.

The company’s financial position showed a decline in total assets, which decreased to $1.85 million as of June 30, 2024, from $5.5 million at the end of 2023. Current liabilities increased slightly to $30.7 million, up from $30.0 million at the end of the previous fiscal year. Ocean Biomedical's stockholders' deficit widened to $94.0 million, compared to $90.8 million at the end of 2023. The company had 34,868,628 shares of common stock outstanding as of June 30, 2024, unchanged from the previous reporting period.

Strategically, Ocean Biomedical has focused on its partnership with Virion Therapeutics, acquiring a 50% membership interest in Virion as part of a contribution agreement. This investment is aimed at advancing the development of Virion's immunotherapy platform. The company has also entered into a Backstop Agreement, which allows for the purchase of up to 8 million shares of common stock, providing a potential source of capital. However, the company has faced challenges, including a working capital deficiency of $29.5 million and the need for additional funding to support ongoing operations and research activities.

Looking ahead, Ocean Biomedical anticipates continued operating losses and negative cash flows, primarily due to the costs associated with research and development. The company has indicated that it will need to raise additional funds to advance its programs and meet its obligations. Management has expressed uncertainty regarding its ability to secure future financing, which could impact the company's ability to continue operations. The company is currently evaluating its operational plans and exploring various financing options to support its growth and development initiatives.