Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 217

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 217
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 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.

40

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 returns. Deferred tax assets and liabilities are determined based on the difference between the financial
statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected
to reverse, and net operating loss, or NOL, carryforwards and research and development tax credit carryforwards. Valuation allowances
are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets
will not be realized. We have recorded a full valuation allowance to reduce our net deferred income tax assets to zero. In the event
we were to determine that we would be able to realize some or all of our deferred income tax assets in the future, an adjustment to the
deferred income tax asset valuation allowance would increase income in the period such determination was made. As a consequence, we have
recorded no income tax expense nor benefit for all years presented.

Comparison
of the Three and Nine months ended September 30, 2024 and 2023

    Three Months Ended September 30,  
    Nine months Ended September 30, 
  
    (in thousands) 
    2024  
    2023  
    Change  
    2024  
    2023