Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3466

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3466
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 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 rights or the clinical development of its product candidate
or program, could have a material adverse effect on our consolidated business, financial condition, results of operations or prospects.

We
may expend our limited resources to pursue a particular product candidate or indication and fail to capitalize on product candidates
or indications that may be more profitable or for which there is a greater likelihood of success.

Because
we have limited financial and managerial resources, we must focus on a limited number of research programs and product candidates and
on specific indications. As a result, we may forego or delay pursuit of opportunities with other product candidates or for other indications
that later prove to have greater commercial potential, or fail to recognize or acquire assets that may be more promising than those we
acquire. Our resource allocation decisions may cause us