Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 122

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 122
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 reporting, management recognizes that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition,
the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource
constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative
to their costs.

Notwithstanding the conclusion
by our Chief Executive Officer and Chief Financial Officer that our disclosure controls and procedures as of March 31, 2025 were not effective,
and notwithstanding the identified material weaknesses, management, including our Chief Executive Officer and Chief Financial Officer,
believes the financial statements included in this Report fairly represent in all material respects our financial condition, results of
operations and cash flows at and for the periods presented in accordance with U.S. GAAP.

47

Previously Identified Material
Weakness

In connection with our preparation
and the audits of our financial statements as of December 31, 2024, 2023, 2022, and 2021, we identified material weaknesses as defined
under the Exchange Act, and by the Public Company Accounting Oversight Board (United States) in our internal control over financial reporting.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is
a reasonable possibility that a material misstatement of the Company’s financial statements will not be prevented or detected on
a timely basis. Specifically, our material weaknesses are:

·Management does not have adequate staffing in its accounting department and has not yet designed and implemented
the appropriate processes and internal controls to support accurate and timely financial reporting.

·During the audit process for December 31, 2024, management identified a material weakness in the design
of the Company’s internal controls related to our review of third-party valuation deliverables regarding our convertible debt and
warrant liability.

Management is working to implement remediation steps
to improve our disclosure controls and procedures and our internal control over financial reporting, including hiring additional accounting
personnel, such as Jolie Kahn as our Chief Financial Officer, and engaging consultants to assist management. Additionally, management
plans to further develop and implement formal policies, processes and documentation procedures relating to financial reporting.

Management’s Plan to
Remediate the Material Weaknesses

We have begun taking measures,
and plan to continue to take measures, to remediate the material weaknesses. These measures include hiring or engaging additional accounting
personnel with familiarity with reporting under