Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 181

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 181
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 of that product candidate.

40

Income
Taxes

Income
taxes are recorded in accordance with FASB ASC 740, Income Taxes, 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.

Comparison
of the Three and Nine months ended September 30, 2024 and 2023

    Three Months Ended September 30,  
    Nine months Ended September 30, 
  
    (in thousands) 
    2024  
    2023  
    Change  
    2024  
    2023  
    Change 
  
    Operating expenses: 

    Research and development 
    $-  
    $305  
    $(305) 
    $26  
    $726  
    $(700)
  
    General and administrative 
     768  
     2,350  
     (1,582) 
     2,019  
     10,148  
     (8,129)
  
    Total operating expenses 
     768  
     2,655  
     (1,887) 
     2,045  
     10,874  
     (8,829)
  
    Operating loss 
     (768) 
     (2,655) 
     1,887  
     (2,045)