Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1617

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 11
Chunk 1617
---
 Credit”) carryforwards. Valuation allowances are provided, if based upon the weight of available evidence,
it is more likely than not that some or all of the deferred tax assets will not be realized. The Company has recorded a full valuation
allowance to reduce its net deferred income tax assets to zero. In the event the Company were to determine that it would be able to realize
some or all of its deferred income tax assets in the future, an adjustment to the deferred income tax asset valuation allowance would
increase income in the period such determination was made. 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 December 31, 2024 and 2023, the Company had no liability for income tax associated with uncertain tax
positions. The Company would recognize any corresponding interest and penalties associated with its income tax positions in income tax
expense. There was no income tax interest or penalties incurred for the fiscal years ended December 31, 2024 and 2023.

Net
Loss Per Share

Net
loss per share is computed by dividing net loss 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.

    F-11

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.