Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2671

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2671
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    significant
    lawsuits, including patent or stockholder litigation;

    ●
    general
    political and economic conditions,; and

    ●
    other
    events or factors, many of which are beyond our control.

In
addition, the stock market in general, and the market for biopharmaceutical companies in particular, have experienced extreme price and
volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market
and industry factors, as well as local or global socio-economic and political factors, including the conflict between Russia and Ukraine,
may negatively affect the market price of our common stock, regardless of our actual operating performance. If the market price of our
common stock and warrants does not exceed the price you paid for them, you may not realize any return on your investment in us and may
lose some or all of your investment. In the past, securities class action litigation has often been instituted against companies following
periods of volatility in the market price of a company’s securities. This type of litigation, if instituted, could result in substantial
costs and a diversion of management’s attention and resources.

We
are a “controlled company” within the meaning of Nasdaq rules and the rules of the SEC. As a result, we qualify for exemptions
from certain corporate governance requirements that provide protection to shareholders of other companies.

Poseidon
Bio, LLC owns a majority of our outstanding common stock. As a result, we are a “controlled company” within the meaning of
the corporate governance standards of Nasdaq. Under these rules, a company of which more than 50% of the voting power is held by an individual,
group or another company is a “controlled company” and may elect not to comply with certain corporate governance requirements,
including:

    ●
    the
    requirement that a majority of our board of directors consist of “independent directors” as defined under the rules of
    Nasdaq;

    ●
    the
    requirement that we have a compensation committee that is composed entirely of directors who meet the Nasdaq independence standards
    for compensation committee members; and

    ●
    the
    requirement that our director nominations be made, or recommended to our full board of directors, by our independent directors or
    by a nominations committee that consists entirely of independent directors.

We
currently rely on these exemptions. If we continue to utilize such exemptions available to controlled companies, we may not have a majority
of independent directors, our