Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 14

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 14
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 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 September 30, 2024 and December 31, 2023, the Company had no liability for income tax associated with
uncertain tax positions.

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 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:

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

    ●
    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.

    ●
    Level 3—Unobservable
    inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities,
    including pricing models, discounted cash flow methodologies and similar techniques.

The
Company’s Backstop