Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 99

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 99
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 were not effective at a reasonable assurance level.

In
designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes
that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired
control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must
reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of
possible controls and procedures relative to their costs.

Notwithstanding
the conclusion by our Chief Executive Officer and Chief Financial Officer that our disclosure controls and procedures as of September
30, 2024 were not effective, and notwithstanding the identified material weaknesses, management, including our Chief Executive Officer
and Chief Financial Officer, believes the financial statements included in this Report fairly represent in all material respects our
financial condition, results of operations and cash flows at and for the periods presented in accordance with U.S. GAAP.

50

Previously
Identified Material Weaknesses

In
connection with our preparation and the audits of our financial statements as of December 31, 2023, 2022, and 2021, we identified material
weaknesses as defined under the Exchange Act, and by the Public Company Accounting Oversight Board (United States) in our internal control
over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting,
such that there is a reasonable possibility that a material misstatement of the company’s financial statements will not be prevented
or detected on a timely basis. Specifically, our material weaknesses are that our management does not have adequate staffing in the accounting
department and has not yet designed and implemented the appropriate processes and internal controls to support accurate and timely financial
reporting. Management is working to implement remediation steps to improve our disclosure controls and procedures and our internal control
over financial reporting, including the hiring of additional accounting personnel, such as Jolie Kahn as our Chief Financial Officer,
and engaging consultants to assist management. Additionally, management plans to further develop and implement formal policies, processes
and documentation procedures relating to financial reporting.

Management’s
Plan to Remediate the Material Weaknesses

We
have begun taking measures, and plan to continue to take measures, to remediate the material weaknesses. These measures include hiring
or engaging additional accounting personnel with familiarity with reporting under U.S. GAAP, including hiring of Jolie Kahn as our Chief
Financial Officer, engaging consultants