Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1261

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9B
Chunk 1261
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 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 shares subject to repurchase, and, if dilutive, the weighted-average number of potential
shares of common stock. For the purposes of the diluted net loss per share calculation, common stock warrants, common stock options
outstanding, and contingently issuable Earnout Shares (as defined in Note 3, Business Combination and Backstop Agreement) are
considered to be potentially anti-dilutive securities for all periods presented, and as a result, diluted net loss per share is the
same as basic net loss per share for those periods.

    F-11

Fair
Value Measurements

Certain
instruments of the Company are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received
for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize
the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are
to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered
observable and the last is considered unobservable:

    ●
    Level
    1—Quoted prices in active markets for identical assets or liabilities.

    ●
    Level
    2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities,
    quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable
    or can be corroborated by observable market data.

    ●
    Level
    3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value
    of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The
Company’s Backstop Put Option Liability and Fixed Maturity Consideration (both as defined below), 2023 and 2024 Convertible Notes,
SPA Warrant, and Ayrton Note Purchase Option, (each as defined and discussed in Note 7, Senior Secured Convertible Notes), are
carried at fair value, determined according to Level 3 inputs in the