Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 246

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 3
Chunk 246
---
 under the Exchange Act, and by the Public Company Accounting Oversight Board (United States) in our internal control
over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting,
such that there is a reasonable possibility that a material misstatement of the company’s financial statements will not be prevented
or detected on a timely basis. Specifically, our material weaknesses are that our management does not have adequate staffing in the accounting
department and has not yet designed and implemented the appropriate processes and internal controls to support accurate and timely financial
reporting. Management is working to implement remediation steps to improve our disclosure controls and procedures and our internal control
over financial reporting, including the hiring of additional accounting personnel, such as Jolie Kahn as our Chief Financial Officer,
and engaging consultants to assist management. Additionally, management plans to further develop and implement formal policies, processes
and documentation procedures relating to financial reporting.

Management’s
Plan to Remediate the Material Weaknesses

We
have begun taking measures, and plan to continue to take measures, to remediate the material weaknesses. These measures include hiring
or engaging additional accounting personnel with familiarity with reporting under U.S. GAAP, including hiring of Jolie Kahn as our Chief
Financial Officer, engaging consultants to assist management, and implementing and adopting additional controls and formal policies,
processes and documentation procedures relating to financial reporting. We plan to undertake recruitment efforts to identify additional
accounting personnel, including possible use of third-party service providers. Remediation costs consist primarily of additional personnel
expenses. We may identify additional material weaknesses in the future or otherwise fail to maintain proper and effective internal controls,
which may impair our ability to produce accurate financial statements on a timely basis.

However,
the implementation of these measures may not be sufficient to remediate the control deficiencies that may lead to material weaknesses
in our internal control over financial reporting or to prevent or avoid potential future material weaknesses. Moreover, our current controls
and any new controls that we develop may become inadequate in the future because of changes in conditions in our business. Furthermore,
we may not have identified all material weaknesses and weaknesses in our disclosure controls and internal control over financial reporting
may be discovered in the future. If we are unable to successfully remediate our existing or any future material weaknesses in our internal
control over financial reporting, or if we identify any additional material weaknesses, the accuracy and timing of our financial reporting
may be adversely affected, we may be unable to maintain compliance with securities law requirements regarding