Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1907

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 13
Chunk 1907
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 deferred tax assets are the tax effects of amortization of organization and start-up costs, U.S. federal and state
NOL carryforwards, and stock-based compensation.

The
significant components of the net deferred tax assets are as follows (in thousands):

 Schedule of Net Deferred Tax Assets

    December 31, 2024  
    December 31, 2023 
  
    Deferred tax assets: 

    Organization and start-up costs 
    $38  
    $42 
  
    Net operating loss carryforwards 
     7,642  
     5,962 
  
    Stock-based compensation 
     14,884  
     14,728 
  
    R&D tax credits 
     28  
     28 
  
    Total deferred income tax assets 
     22,592  
     20,760 
  
    Valuation allowance 
     (22,592) 
     (20,760)
  
    Deferred tax asset, net of allowance 
    $—  
    $— 

The
Company may be entitled to claim additional federal and state income tax credits for its 2023 and 2024 R&D activities, but these
amounts have not yet been determined. Any R&D Credits generated by the Company in 2023 and 2024 would result in an additional deferred
tax asset that would be subject to a full valuation allowance. Future changes in ownership may limit the utilization of net operating
loss carryforwards and R&D Credits due to Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar provisions.

The
Company has non-capital losses of $28.8
million as of December 31, 2024, which can be
used to offset future taxable income and are due to expire in the following years:

 Schedule of Offset Future Taxable Income

    Amount 
  
    2040 
    $1,632 
  
    2041 
     5,812 
  
    2042 
     3,924 
  
    2043 
     11,104 
  
    2044 
     6,329 
  
    Total 
    $28,801 

Management
assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit
use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred