Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2571

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2571
---
 party investors. These third parties may have certain rights that could delay collaboration, licensing or other arrangement
with another third party, and the existence of these rights may adversely impact the ability to attract an acquirer or partner.

We
may form additional subsidiaries and enter into similar agreements with future partners or investors, or our subsidiaries may enter into
further agreements, that in each case may contain similar provisions or other terms that are not favorable to us.

Our
ability to realize value from our subsidiaries may be impacted if we reduce our ownership to a minority interest or otherwise cede control
to other investors through contractual agreements or otherwise.

We
currently wholly own all of our subsidiaries, and plan to remain majority owners of future subsidiaries. However, in the event that any
of our subsidiaries require additional capital and its respective board of directors authorizes the transaction, our equity interest
in our subsidiaries may be reduced to the extent such additional capital is obtained from third party investors rather than from us.
Such transactions would still need to be approved by the board of directors of our respective subsidiary over which we maintain full
control.

However,
if we do not wish to or cannot provide additional capital to any of our subsidiaries, we may approve of an issuance of equity by a subsidiary
that dilutes our ownership and may lose control over the subsidiary. In addition, if the affairs of such minority-owned subsidiaries
were to be conducted in a manner detrimental to the interests or intentions of us, our business, reputation, and prospects may be adversely
affected. For example, other shareholders in a minority-owned subsidiary could take actions without our consent, which could have an
adverse impact on our investment in the subsidiary.

A
single or limited number of subsidiaries may comprise a large proportion of our value.

A
large proportion of our value may at any time reside in one or two of our subsidiaries, including intellectual property rights and the
value ascribed to the product candidate or program that it is developing. Our consolidated financial condition and prospects may be materially
diminished if the clinical development or potential commercialization prospects of a subsidiary’s product candidate or program
or one or more of the intellectual property rights held by a specific subsidiary becomes impaired. Furthermore, a large proportion of
our consolidated revenue may at any time be derived from one, or a small number of, licensed technologies, and termination or expiration
of licenses to these technologies would likely have a material adverse effect on our consolidated revenue. Any material adverse impact
on the value of a particular subsidiary, including its intellectual property