Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3721

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3721
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delinquent SEC filings.

8.
Commitments and Contingencies

Litigation

From
time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities,
including the significant matters described below that could have a material impact on our results of operations and cash flows. In many
proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or
even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until
a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities
involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors,
the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery
or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have
a material effect on the outcome. For such matters, unless otherwise specified, we do not believe it is possible to provide a meaningful
estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant
developments and new information must be continuously evaluated.

Heller
v. Ocean Biomedical, Inc. et al.:

On
May 23, 2023, Jonathan Heller (“Heller”) filed a civil action against the Company, Poseidon Bio LLC, Dr. Chirinjeev Kathuria
and Elizabeth Ng (collectively, the “Defendants”) in the District Court of Rhode Island. Heller has asserted claims alleging
that he is entitled to earned salary and various other payments following his resignation from the Company. On July 27, 2023, Defendants
filed their Answer and Affirmative Defenses. On September 3, 2024, Defendants filed a Motion to Dismiss numerous Counts included in the
claims on the grounds that the Counts fail to state a claim upon which relief may be granted. If successful, this Motion would remove
Dr. Kathuria and Ms. Ng as named defendants and will reduce the number of claims against the Company to three. The Court has not provided
a hearing date for this Motion. The Company has concluded that a loss is probable and has recorded a liability of $0.5