Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 562

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 562
---
 candidate.

Income
Taxes

Income
taxes are recorded in accordance with FASB ASC 740, Income Taxes, or FASB ASC 740, which provides for deferred taxes using an asset and
liability approach. We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been
included in the financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between
the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences
are expected to reverse, and net operating loss, or NOL, carryforwards and research and development tax 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. We have recorded a full valuation allowance to reduce our net deferred income tax assets to zero. In
the event we were to determine that we would be able to realize some or all of our 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. As a consequence,
we have recorded no income tax expense nor benefit for all years presented.

151

Comparison
of the fiscal years ended December 31, 2024 and 2023

    For the Fiscal Year Ended December 31,
  
    (in thousands) 
    2024 
    2023 
    $ Change
  
    Revenue 
    $—  
    $—  
    $— 
  
    Operating Expenses: 

    Research and development 
     26  
     709  
     (683)
  
    General and administrative 
     3,772  
     9,505  
     (5,733)
  
    Total operating expenses 
     3,798  
     10,214  
     (6,416)
  
    Operating loss 
     (3,798) 
     (10,214) 
     6,416 
  
    Other income (expense) 
     (5,682) 
     (104,252) 
     98,570 

    Net loss 
    $(9,480) 
    $(114,466) 
    $104,986 

Operating
Expenses

Research
and development

Research
and development expenses