Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 59

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 59
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 The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain
tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not
be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be
realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. As
of March 31, 2025 and December 31, 2024, the Company had no liability for income tax associated with uncertain tax positions.

Net (Loss) Income Per Share

Net (loss) income per share is computed
by dividing net (loss) income attributed to common stockholders by the weighted-average number of shares of common stock outstanding during the
period, less shares subject to repurchase, and, if dilutive, the weighted-average number of potential shares of common stock. For the
purposes of the diluted net loss per share calculation, common stock warrants, common stock options outstanding, and contingently issuable
Earnout Shares (as defined in Note 3, Business Combination and Backstop Agreement) are considered to be potentially anti-dilutive
securities for all periods presented, and as a result, diluted net loss per share is the same as basic net loss per share for those periods.

Fair Value Measurements

Certain instruments of the Company
are carried at fair value under U.S. GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to
transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable
inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed
in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered
unobservable:

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    Level 1—Quoted prices in active markets for identical assets or liabilities.

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    Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

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