Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1314

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9B
Chunk 1314
---
    R&D tax credits 
     28  
     28 
  
    Total deferred income tax assets 
     22,592  
     20,760 
  
    Valuation allowance 
     (22,592) 
     (20,760)
  
    Deferred tax asset, net of allowance 
    $—  
    $— 

The
Company may be entitled to claim additional federal and state income tax credits for its 2023 and 2024 R&D activities, but these
amounts have not yet been determined. Any R&D Credits generated by the Company in 2023 and 2024 would result in an additional deferred
tax asset that would be subject to a full valuation allowance. Future changes in ownership may limit the utilization of net operating
loss carryforwards and R&D Credits due to Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar provisions.

The
Company has non-capital losses of $28.8
million as of December 31, 2024, which can be
used to offset future taxable income and are due to expire in the following years:

 Schedule of Offset Future Taxable Income

    Amount 
  
    2040 
    $1,632 
  
    2041 
     5,812 
  
    2042 
     3,924 
  
    2043 
     11,104 
  
    2044 
     6,329 
  
    Total 
    $28,801 

Management
assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit
use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred
over the three-year period ended December 31, 2024. Such objective evidence limits the ability to consider other subjective evidence,
such as our projections for future growth.

On
the basis of this evaluation, as of December 31, 2024 and 2023, a full valuation allowance of $22.6 million and $20.8 million, respectively,
have been recorded, as it is more likely than not that none of the deferred tax assets will be realized.

    F-36

13.
License and Manufacturing Agreements

Elkurt/Brown
License Agreements

In
2020, the Company entered into four separate Exclusive License Agreements (the “Initial Brown License Agreements”)