Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1088

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7
Chunk 1088
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Issued Accounting Pronouncements

In
August 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-06, Debt — Debt with Conversion and Other
Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) — Accounting
for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments,
amends the guidance on derivative scope exceptions for contracts in an entity’s own equity, and modifies the guidance on diluted
earnings per share calculations as a result of these changes. The Company early adopted ASU 2020-06 as of January 1, 2023, using a modified
retrospective approach, noting the Company’s prior instruments would not be impacted by this adoption. The Company utilized the
updated derivative guidance when accounting for the 2023 Convertible Note (as defined in Note 7, Senior Secured Convertible Notes).

In November 2023, the FASB issued ASU No. 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands
public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the
chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition
for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements
under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for public business
entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
The Company has adopted ASU 2023-07, but the adoption did not have a material impact to its consolidated financial statements and related
disclosures for the year ended December 31, 2024.

In
December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the
transparency and decision usefulness of income tax disclosures. This standard is effective for the Company for fiscal years beginning
after December 15, 2024 and can be