Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 175

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 175
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 market value” (defined below) by (y) the fair market value. The “fair market
value” for this purpose shall mean the average reported last sale price of the shares of common stock for the five trading days
ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

For accounting purposes, the
Company accounts for the IPO Warrants (i) in accordance with the guidance contained in ASC 480-10-25-8 and ASC 815-40 and (ii) classified
as an equity instrument. The fair values of the IPO Warrants were accounted for as deemed dividends. Since the entries to recognize the
fair value of the IPO Warrants offset within additional paid-in capital, there is no inherent impact to the condensed consolidated financial
statements.

    30

11. Net (Loss) Income Per Share

The Company computes basic loss
per share using net income (loss) attributable to stockholders and the weighted-average number of the Company’s common stock shares
outstanding during each period, less shares subject to repurchase under the Backstop Agreement. Diluted earnings per share include shares
issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive.
The Company’s potentially dilutive securities, which include stock options, earnout shares, and warrants to purchase shares of common
stock, have been excluded from the computation of diluted net income (loss) per share as the effect would be to reduce the net loss per
share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted income (loss) per
share attributable to the Company’s stockholders’ is the same.

The net income (loss) per share
for the basic and diluted earnings calculations for the three months ended March 31, 2025 and 2024 is as follows (in thousands, except
share and per share data):

Schedule of Earnings Per Share, Basic and Diluted

    2025  
    2024 

    Three Months Ended March 31, 

    2025  
    2024 
  
    Numerator: 

    Net (loss) income 
    $(8,240) 
    $12,999 
  
    Denominator: 

    Weighted-average shares of common stock outstanding, basic and diluted 
     91,024,268  
     27,344,486