Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 200

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 200
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 working to implement remediation steps to improve our disclosure controls and procedures and our internal control
over financial reporting, including the hiring of additional accounting personnel, such as Jolie Kahn as our Chief Financial Officer,
and engaging consultants to assist management. Additionally, management plans to further develop and implement formal policies, processes
and documentation procedures relating to financial reporting.

Management’s
Plan to Remediate the Material Weaknesses

We
have begun taking measures, and plan to continue to take measures, to remediate the material weaknesses. These measures include hiring
or engaging additional accounting personnel with familiarity with reporting under U.S. GAAP, including hiring of Jolie Kahn as our Chief
Financial Officer, engaging consultants to assist management, and implementing and adopting additional controls and formal policies,
processes and documentation procedures relating to financial reporting. We plan to undertake recruitment efforts to identify additional
accounting personnel, including possible use of third-party service providers. Remediation costs consist primarily of additional personnel
expenses. We may identify additional material weaknesses in the future or otherwise fail to maintain proper and effective internal controls,
which may impair our ability to produce accurate financial statements on a timely basis.

However,
the implementation of these measures may not be sufficient to remediate the control deficiencies that may lead to material weaknesses
in our internal control over financial reporting or to prevent or avoid potential future material weaknesses. Moreover, our current controls
and any new controls that we develop may become inadequate in the future because of changes in conditions in our business. Furthermore,
we may not have identified all material weaknesses and weaknesses in our disclosure controls and internal control over financial reporting
may be discovered in the future. If we are unable to successfully remediate our existing or any future material weaknesses in our internal
control over financial reporting, or if we identify any additional material weaknesses, the accuracy and timing of our financial reporting
may be adversely affected, we may be unable to maintain compliance with securities law requirements regarding timely filing of periodic
reports in addition to applicable stock exchange listing requirements, investors may lose confidence in our financial reporting, and
our share price may decline as a result.

We
also could become subject to investigations by Nasdaq, the SEC, or other regulatory authorities. Any failure to develop or maintain effective
controls or any difficulties encountered in its implementation or improvement could negatively impact our operating results or cause
us to fail to meet its reporting obligations and may result in a restatement of our financial statements for prior periods, which could
cause the price of our common stock and warrants to decline.