Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2645

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2645
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 of our stock.

We
are required to disclose changes made in our internal controls and procedures on a quarterly basis and our management is required to
assess the effectiveness of these controls annually. If we are no longer considered an EGC, then we will be required to have
an audit of the effectiveness of internal controls over financial reporting. We could be an EGC for up to five years. An independent assessment of the effectiveness of our
internal controls over financial reporting could detect problems that our management’s assessment might not. Undetected material
weaknesses in our internal controls over financial reporting could lead to restatements of our financial statements and require us to
incur the expense of remediation.

Our
disclosure controls and procedures may not prevent or detect all errors or acts of fraud.

We
are subject to certain reporting requirements of the Exchange Act. Our disclosure controls and procedures are designed to reasonably
assure that information required to be disclosed by us in reports we file or submit under the Exchange Act is accumulated and communicated
to management, recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe
that any disclosure controls and procedures or internal controls and procedures, no matter how well conceived and operated, can provide
only reasonable, not absolute, assurance that the objectives of the control system are met. These inherent limitations include the realities
that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls
can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the
controls. Accordingly, because of the inherent limitations in our control system, misstatements or insufficient disclosures due to error
or fraud may occur and not be detected.

Risks
Related to Marketing, Reimbursement, Healthcare Regulations and Ongoing Government Regulatory Compliance

Coverage
and reimbursement may be limited or unavailable in certain market segments for our product candidates, if approved, which could make
it difficult for us to sell any product candidates profitably.

Significant
uncertainty exists as to the coverage and reimbursement status of any products for which we may obtain regulatory approval. In the United
States, sales of any products for which we may receive regulatory marketing approval will depend, in part, on the availability of coverage
and reimbursement from third-party payors. Third-party payors include government authorities such as Medicare, Medicaid, TRICARE, and
the Veterans Administration, managed