Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 13

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 13
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 segment’s profit or loss and assets. All disclosure requirements
under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for public business
entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
The Company has concluded that the impact of adopting ASU 2023-07 is not material to its condensed consolidated financial statements and
related disclosures.

In December 2023, the FASB issued ASU No. 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of income
tax disclosures. This standard is effective for the Company for fiscal years beginning after December 15, 2024 and can be applied on a
prospective or retrospective basis. The Company has concluded that the impact of adopting ASU 2023-09 is not material to its condensed
consolidated financial statements and related disclosures.

Emerging Growth Company
and Smaller Reporting Company Status

The Jumpstart Our Business Startups
Act of 2012 permits an “emerging growth company” such as us 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. We
have elected to not “opt out” of this provision and, as a result, we 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 we either (i) irrevocably elect
to “opt out” of such extended transition period or (ii) no longer qualify as an emerging growth company.

We are also a “smaller
reporting company” meaning that the market value of our stock held by non-affiliates is expected to be less than $700 million and
our annual revenue was less than $100 million during the most recently completed fiscal year. We may continue to be a smaller reporting
company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue was less
than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than
$700 million. If we are a smaller reporting company at the time that we cease to be