Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 20

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 20
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, to vote them as
that party sees fit, until such time as the Notes are paid in full.

As
of September 30, 2024, the Company is in default of its obligations with respect to Ayrton LLC as a result of, among other things, its
delinquent SEC filings.

    12

Emerging
Growth Company and Smaller Reporting Company Status

We
qualify as an “emerging growth company” within the meaning of the Section 2(a)(19) of the Securities Act, as modified by
the Jumpstart Our Business Startup Act (“JOBS Act”) of 2012. The JOBS Act permits an “emerging growth company”
to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies
until those standards would otherwise apply to private companies. The Company has elected not to “opt out” of this provision
and, as a result, the Company will adopt new or revised accounting standards at the time private companies adopt the new or revised accounting
standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition
period or (ii) no longer qualifies as an emerging growth company.

The
Company is also a “smaller reporting company” and may continue to be a smaller reporting company if either (i) the market
value of the stock held by non-affiliates is less than $250 million or (ii) the Company’s annual revenue was less than $100 million
during the most recently completed fiscal year and the market value of the Company’s stock held by non-affiliates is less than
$700 million. If the Company is a smaller reporting company at the time that it ceases to be an emerging growth company, the Company
may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically,
as a smaller reporting company, the Company may choose to present only the two most recent fiscal years of audited financial statements
in its Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations
regarding executive compensation.

Recent
Accounting Pronouncements

In
August 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-06, Debt — Debt with Conversion and Other
Options (Subtopic 470-20) and Derivatives and Hedging-Contracts