Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1378

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9C
Chunk 1378
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 other risks and uncertainties. Factors that could affect the Company’s
future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of
results of clinical trials and reaching milestones, uncertainty of regulatory approval of the Company’s product candidates, uncertainty
of market acceptance of the Company’s product candidates, competition from other products, securing and protecting intellectual
property, strategic relationships and dependence on key employees and research partners. The Company’s product candidates require
Food and Drug Administration (“FDA”) and other non-U.S. regulatory agencies approval prior to commercial sales. There can
be no assurance that any product candidates will receive the necessary approvals. If the Company was denied approval, if approval was
delayed, if approval was unable to be maintained, it could have a materially adverse impact on the Company.

Revenue

The
Company has not generated any revenue from any sources since its inception, including from product sales. The Company does not expect
to generate any revenue from the sale of products in the foreseeable future. If the Company’s development efforts for its product
candidates are successful and result in regulatory approval, or license agreements with third parties, the Company may generate revenue
in the future from product sales. However, there can be no assurance as to when revenue will be generated, if at all.

    F-10

Research
and Development Expenses

Research
and development expenses consist primarily of costs incurred for research activities, including the development of product candidates.
Research and development costs are expensed as incurred. For the fiscal years ended December 31, 2024 and 2023, research and development
expenses consist of expenses recognized for stock-based compensation and incurred for initial license fees, annual maintenance license
fees, and services agreements. Payments associated with licensing agreements to acquire exclusive licenses to develop, use, manufacture
and commercialize products that have not reached technological feasibility and do not have alternate commercial use are expensed as incurred.

Deferred
Offering Costs

The
Company capitalizes certain legal, professional accounting, and other third-party fees associated with equity financings such as the
Business Combination as deferred offering costs until such financings are consummated. After consummation of the equity financings,
these costs are recorded in stockholders’ deficit as a reduction of proceeds generated as a result of the offering. During the
year ended December 31, 2023, the Company recognized offering costs of $2.0
million as a reduction to the Business Combination proceeds within additional paid-in capital