Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3038

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 8
Chunk 3038
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 $7.6
million as a component of other income (expense) in its consolidated statements of operations during the year ended December
31, 2023, as the amount of offering costs were in excess of the proceeds generated as a result of the Business
Combination.

Income
Taxes and Tax Credits

Income
taxes are recorded in accordance with FASB ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an
asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of
events that have been included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on
the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse, and net operating loss (“NOL”) carryforwards and research and development
tax credit (“R&D Credit”) carryforwards. Valuation allowances are provided, if based upon the weight of available evidence,
it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has recorded a full valuation
allowance to reduce its net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize
some or all of its deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would
increase income in the period such determination was made. The Company accounts for uncertain tax positions in accordance with the provisions
of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit
would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit
will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available
facts and circumstances. As of December 31, 2024 and 2023, the Company had no liability for income tax associated with uncertain tax
positions. The Company would recognize any corresponding interest and penalties associated with its income tax positions in income tax
expense. There was no income tax interest or penalties incurred for the fiscal years ended December 31, 2024 and 2023.

Net
Loss Per Share

Net
loss per share is computed by dividing net loss attributed to common stockholders by the weighted-average number of shares of common
stock outstanding during the period, less