Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3568

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3568
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, as well as rules subsequently adopted by the SEC and Nasdaq to implement provisions of the Sarbanes-Oxley Act, impose significant
requirements on public companies, including requiring establishment and maintenance of effective disclosure and financial reporting controls
and changes in corporate governance practices. Further, in July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act,
or the Dodd-Frank Act, was enacted. There are significant corporate governance and executive compensation related provisions in the Dodd-Frank
Act that require the SEC to adopt additional rules and regulations in these areas such as “say on pay” and proxy access.
EGCs are permitted to implement many of these requirements over a longer period. Stockholder activism, the current political environment
and the current high level of government intervention and regulatory reform may lead to substantial new regulations and disclosure obligations,
which may lead to additional compliance costs and impact the manner in which we operate our business in ways we cannot currently anticipate.

We
expect the rules and regulations applicable to public companies to substantially increase our legal and financial compliance costs and
to make some activities more time-consuming and costly. If these requirements divert the attention of our management and personnel from
other business concerns, they could have an adverse effect on our business. The increased costs will decrease our net income or increase
our net loss, and may require us to reduce costs in other areas of our business or increase the prices of our products or services. We
cannot predict or estimate the amount or timing of additional costs we may incur to respond to these requirements. The impact of these
requirements could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, our
board committees or as executive officers.

Our
management team has limited experience managing a public company.

Most
of the members of our management team have limited to no experience managing a publicly traded company, interacting with public company
investors and complying with the increasingly complex laws pertaining to public companies. Our management team has not worked together
at prior companies that were publicly traded. Our management team may not successfully or efficiently manage their new roles and responsibilities.
Our transition to being a public company has subjected us to significant regulatory oversight and reporting obligations under the federal
securities laws and the continuous scrutiny of securities analysts and investors. These new obligations and constituents will require
significant attention from our senior management and could divert their attention away from the day-to-day management of our business,
which could have a material adverse effect on our business, financial condition and results of