Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 201

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 201
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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 December 31, 2023, in our Annual Report on Form 10-K for the year ended December, 31, 2023.

Item
1A. Risk Factors

In
addition to those the risk factors set forth in Part I “Item 1A: Risk Factors” in our Annual Report on Form 10-K for the
year ended December, 31, 2023, and other reports we filed with the SEC, below are certain risk factors related to the Company and its
operations.

Our
level of indebtedness and significant debt service obligations could adversely affect our financial condition or our ability to fulfill
our obligations, including the note issued in May 2023, and make it more difficult for us to fund our operations.

As
of September 30, 2024, we had $15.6 million in principal