Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 120

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 120
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 If factors change and different assumptions
are used, our expense recognition could be materially different in the future.

46

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands
public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the
chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition
for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements
under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for public business
entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
The Company has concluded that the impact of adopting ASU 2023-07 is not material to its condensed consolidated financial statements and
related disclosures.

In December 2023, the FASB issued ASU No. 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income
tax disclosures. This standard is effective for the Company for fiscal years beginning after December 15, 2024 and can be applied on a
prospective or retrospective basis. The Company has concluded that the impact of adopting ASU 2023-09 is not material to its condensed
consolidated financial statements and related disclosures.

Emerging Growth Company
and Smaller Reporting Company Status

The Jumpstart Our Business Startups
Act of 2012 permits an “emerging growth company” such as us 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. We
have elected to not “opt out” of this provision and, as a result, we 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 we either (i) irrevocably elect
to “opt out” of such extended transition period or (ii) no longer qualify as an emerging growth company.

We are also a “smaller