Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 62

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 62
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885,466 Backstop Shares multiplied by $2.50. The Company has elected to measure the Fixed Maturity Consideration using the Fair Value Option (“FVO”) under ASC 825, Financial Instruments. The Company measures the fair value of the Fixed Maturity Consideration on a recurring basis, with any fair value adjustment recorded within other income (expense) in the condensed consolidated statements of operations. Refer to Note 4, Fair Value Measurements, for further detail.

The Prepayment is accounted for
as a reduction to equity to reflect the substance of the overall arrangement as a net purchase of the Backstop Shares and sales of shares
to the Backstop Parties.

    12

Emerging Growth Company and Smaller Reporting
Company Status

We qualify as an “emerging
growth company” within the meaning of the Section 2(a)(19) of the Securities Act, as modified by the Jumpstart Our Business Startup
Act (“JOBS Act”) of 2012. The JOBS Act permits an “emerging growth company” to take advantage of an extended transition
period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to
private companies. The Company has elected not to “opt out” of this provision and, as a result, the Company will adopt new
or revised accounting standards at the time private companies adopt the new or revised accounting standard and will do so until such time
that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies
as an emerging growth company.

The
Company is also a “smaller reporting company” and may continue to be a smaller reporting company if either (i) the
market value of the stock held by non-affiliates is less than $250 million or (ii) the Company’s annual revenue was less than
$100 million during the most recently completed fiscal year and the market value of the Company’s stock held by non-affiliates
is less than $700 million. If the Company is a smaller reporting company at the time that it ceases to be an emerging growth
company, the Company may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting
companies. Specifically, as a smaller reporting company, the Company may choose to present only the two most recent fiscal years of
audited financial statements in its Annual Report on Form 10-K (which is what the Company has chosen to present) and