Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 189

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 189
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    development and timely delivery of clinical-grade and commercial-grade drug formulations that can be used in our clinical trials and for commercial launch;

    ●
    launching commercial sales of our product candidates, if and when approved, whether alone or in collaboration with others;

    ●
    maintaining a continued acceptable safety protocol of our product candidates following any approval; and

    ●
    significant and potential changing government regulations.

Any changes in the outcome of
any of these variables with respect to the development of our product candidates in preclinical and clinical development could mean a
significant change in the costs and timing associated with the development of these product candidates, such as if the FDA or another
regulatory authority were to delay our planned start of clinical trials or require us to conduct other clinical trials or testing beyond
those that we currently expect or if significant delays in enrollment in any of our planned clinical trials occurred. Such delays or changes
may require us to expend significant additional financial resources and time on the completion of clinical development of that product
candidate.

General and Administrative
Expenses

General and administrative expenses
consist, or will consist, primarily of salaries and benefits, travel and stock-based compensation expense for personnel in executive,
business development, finance, legal, human resources, information technology, pre-commercial and support personnel functions. General
and administrative expenses also include direct and allocated facility-related costs, insurance costs, stock-based compensation, and professional
fees for internal and external accounting services, legal, patent, consulting, investor and public relations.

We anticipate that our general
and administrative expenses will increase in the future as we increase our headcount to support our continued research activities and
development of our product candidates and prepare for potential commercialization activities. We also incur significantly increased accounting,
audit, legal, regulatory, tax, compliance with Nasdaq and SEC requirements, and director and officer insurance costs as well as investor
and public relations expenses associated with operating as a public company. If and when we believe a regulatory approval of a product
candidate appears likely, we anticipate an increase in payroll and other employee-related expenses as a result of our preparation for
commercial operations as it relates to the sales and marketing of that product candidate.

39

Income Taxes

Income taxes are recorded in
accordance with FASB ASC 740, Income Taxes, which provides for deferred taxes using an asset and liability approach. We recognize
deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements
or tax