Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 199

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 199
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 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
to assist management, and implementing and adopting additional controls and formal policies, processes and documentation procedures relating
to financial reporting. We plan to undertake recruitment efforts to identify additional accounting personnel, including possible use of
third-party service providers. Remediation costs consist primarily of additional personnel expenses. We may identify additional material
weaknesses in the future or otherwise fail to maintain proper and effective internal controls, which may impair our ability to produce
accurate financial statements on a timely basis.

However, the implementation of
these measures may not be sufficient to remediate the control deficiencies that may lead to a material weakness in our internal control
over financial reporting or to prevent or avoid potential future material weaknesses. Moreover, our current controls and any new controls
that we develop may become inadequate in the future because of changes in conditions in our business. Furthermore, we may not have identified
all material weaknesses and weaknesses in our disclosure controls and internal control over financial reporting may be discovered in the
future. If we are unable to successfully remediate our existing or any future material weaknesses in our internal control over financial
reporting, or if we identify any additional material weaknesses, the accuracy and timing of our financial reporting may be adversely affected,
we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic reports in addition to applicable
stock exchange listing requirements, investors may lose confidence in our financial reporting, and our share price may decline as a result.

We also could become subject
to investigations by Nasdaq, the SEC, or other regulatory authorities. Any failure to develop or maintain effective controls or any difficulties
encountered in its implementation or improvement could negatively impact our operating results or cause us to fail to meet its reporting
obligations and may result in a restatement of our financial statements for prior periods, which could cause the price of our common stock
and warrants to decline.

Changes in Internal Control
over Financial Reporting

There were no changes in our
internal control over financial reporting during the three months ended March 31, 2025, that materially affected,