Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2641

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2641
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 could result in delays in product development
and harm our business.

To
induce valuable employees to remain at our company, in addition to salary and cash incentives, we intend to provide restricted stock
awards and stock options that vest over time. The value to employees of restricted stock awards and stock options that vest over time
may be significantly affected by movements in our stock price that are beyond our control, and may at any time be insufficient to counteract
more lucrative offers from other companies. Despite our efforts to retain valuable employees, members of our management, scientific and
development teams may terminate their employment with us on short notice. Our key employees are at-will employees, which means that any
of our employees could leave our employment at any time, with or without notice. In addition, we do not maintain key person insurance.
Our success also depends on our ability to continue to attract, retain and motivate highly skilled junior, mid-level and senior scientific
and medical personnel.

Our
employees, independent contractors, consultants, commercial partners, collaborators and vendors may engage in misconduct or other improper
activities, including noncompliance with regulatory standards and requirements.

We
are exposed to the risk of employee fraud or other illegal activity by our employees, independent contractors, consultants, commercial
partners, collaborators and vendors. Misconduct by these parties could include intentional, reckless and/or negligent conduct that fails
to comply with the laws of the FDA and other similar foreign regulatory bodies, provide true, complete and accurate information to the
FDA and other similar foreign regulatory bodies, comply with manufacturing standards we have established, comply with healthcare fraud
and abuse laws in the United States and similar foreign fraudulent misconduct laws, or report financial information or data accurately
or to disclose unauthorized activities to us. If we obtain FDA approval of any of our product candidates and begin commercializing those
products in the United States, our potential exposure under such laws will increase significantly, and our costs associated with compliance
with such laws will also increase. These laws may impact, among other things, our current activities with principal investigators and
research patients, as well as proposed and future sales, marketing and education programs. We adopted a code of ethical business conduct,
but it is not always possible to identify and deter misconduct by our employees, independent contractors, consultants, commercial partners
and vendors, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged
risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from