Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1897

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 13
Chunk 1897
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down into the Company’s consolidated financial statements. As of December 31, 2024 and 2023, Legacy Ocean’s founder held 100%
of the voting power and 68%
of the equity interests in Poseidon.

Stock-Based
Compensation

The
Company recognizes stock-based compensation costs for equity-based compensation awards granted to employees, nonemployees, and directors
in accordance with U.S. GAAP. The Company estimates the fair value and the resulting amounts using the Black-Scholes option-pricing model.
The fair value is recognized on a straight-line basis over the requisite service periods but accelerated to the extent that grants vest
sooner than on a straight-line basis. Forfeitures are accounted for as they occur and requires management to make a number of other assumptions,
including the volatility of the underlying shares, the risk-free interest rate, and expected dividends. Expected volatility is based
on the historical share volatility of a set of comparable publicly traded companies over a period of time equal to the expected term
of the grant or option.

Stock-based
compensation for the years ended December 31, 2024 and 2023 consisted of costs related to (i) stock options granted to
non-employee directors in the first quarter of 2023 and (ii) warrants issued to advisors and consultants, as discussed below.

The
stock-based compensation allocation was based upon the grantees’ vested interests and the amount of time spent in their respective
operating department. The following table summarizes the allocation of stock-based compensation for the years ended December 31, 2024
and 2023:

 Schedule of Allocation of Stock-based Compensation

    (in thousands) 
    2024  
    2023 
  
    General and administrative expense (1) 
    $745  
    $1,205 
  
    Total stock-based compensation expense 
    $745  
    $1,205 

    (1)
    In
    March 2023, the Company issued warrants to advisors and consultants as discussed below in Note 10, Warrants, which resulted
    in $0.6 million of stock-based compensation expense in 2023. Refer to discussion below for further detail. Also included in
    general and administrative expense is the stock-based compensation expense for the options awards to non-employee directors as discussed
    above.

    F-31

10.
Warrants

As
of December 31, 2024 and 2023, the