Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2283

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2283
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and (iv) the content of forthcoming regulations and other guidance from the U.S. Department of the Treasury. Generally, issuances of
stock by a repurchasing corporation in a year in which such corporation repurchases stock would reduce the amount of excise tax imposed
with respect to such repurchase. The excise tax is imposed on the repurchasing corporation itself, not the shareholders from which shares
are repurchased, and only limited guidance on the mechanics of any required reporting and payment of the excise tax on which taxpayers
may rely has been issued to date. The imposition of the excise tax could reduce the amount of cash available to Ocean Biomedical to fund
operations and to make distributions to shareholders.

If
the number of securities redeemed exceeds the number of securities issued under the Business Combination Agreement, Backstop Agreement
and Common Stock Purchase Agreement, however, the amount of excise tax could be substantial. Consequently, the value of your investment
in our securities may decrease as a result of the excise tax.

We
may be the target of securities class action and derivative lawsuits which could result in substantial costs.

Securities
class action lawsuits and derivative lawsuits are often brought against public companies that have entered into merger or business combination
agreements. Additionally, our share price may be volatile and, in the past, companies that have experienced volatility in the market
price of their stock have been subject to securities litigation, including class action litigation. We may be the target of this type
of litigation in the future. Even if the lawsuits are without merit, defending against these claims can result in substantial costs and
divert management time and resources. An adverse judgment could result in monetary damages, which could have a negative impact on our
liquidity and financial condition. We cannot predict whether any such lawsuits will be filed.

ITEM
1B. UNRESOLVED STAFF COMMENTS.

None.

ITEM
1C. CYBERSECURITY.

We
are committed to protecting the confidentiality, integrity, and availability of its information systems and the data they contain from
cybersecurity threats. We acknowledge that cybersecurity is a dynamic and evolving area of risk that requires ongoing assessment, management,
and oversight. As we grow in size and revenue, we intend to work with third party companies to assess, identify, manage, and mitigate
material cybersecurity threats, as well as to respond to and recover from cybersecurity incidents, all as necessary.

We
recognize the importance of maintaining our technology and data systems. Our cybersecurity policies,