Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 237

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 237
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 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.

For more information concerning the material weaknesses identified and
remediation steps, see the section titled “Risk Factors – We identified a material weakness in Legacy Ocean’s
internal control over financial reporting. If our remediation of these material weaknesses are not effective, or if we experience additional
material weaknesses or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately
report our financial condition or results of operations” included in our Annual Report on Form 10-K, filed on November 25, 2024.

Changes
in Internal Control over Financial Reporting

There
were no changes in our internal control over financial reporting during the three months ended September 30, 2024, that materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

51

PART
II-OTHER INFORMATION

Item
1. Legal Proceedings

From
time to time, we may become involved in legal proceedings arising in the ordinary course of our business. As of the date of this Quarterly
Report on Form 10-Q, we were not a party to any material legal matters or claims except as set forth in our audited financial statements
for the year ended December 31, 2023 in our Annual Report on Form 10-K for the year ended December, 31, 2023.

In
the future, we may become party to legal matters and claims in the ordinary course of business, the resolution of which we do not anticipate
would have a material adverse impact on our financial position, results of operations or cash flows except as set forth in our audited
financial statements for the year ended