Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 83

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 83
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to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved,
the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations
will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome. For
such matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover,
it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must
be continuously evaluated.

Heller v. Ocean Biomedical, Inc. et al.:

On May 23, 2023, Jonathan Heller
(“Heller”) filed a civil action against the Company, Poseidon Bio LLC, Dr. Chirinjeev Kathuria and Elizabeth Ng (collectively,
the “Defendants”) in the District Court of Rhode Island. Heller has asserted claims alleging that he is entitled to earned
salary and various other payments following his resignation from the Company. On July 27, 2023, Defendants filed their Answer and Affirmative
Defenses. On September 3, 2024, Defendants filed a Motion to Dismiss numerous counts included in the claims on the grounds that the counts
fail to state a claim upon which relief may be granted. If successful, this Motion would remove Dr. Kathuria and Ms. Ng as named defendants
and will reduce the number of claims against the Company to three. The Court has not provided a hearing date for this Motion. The Company
has concluded that a loss is probable and has recorded a liability of $0.5 million as of March 31, 2025 within accounts payable and accrued
expenses on the condensed consolidated balance sheet.

IPFS Corporation v. Ocean Biomedical, Inc

On January 4, 2024, IPFS Corporation
(“IPFS”) filed an action against the Company in the U.S. District Court for the District of Delaware. IPFS claims amounts
owed relating to financing provided to Aesther Healthcare Acquistion Corp for commercial insurance premiums in 2022, after the August
31, 2022, Merger Agreement but prior to closing of the Business Combination. IPFS filed a motion for a default judgment on February 16,
2024. Two default judgments have been entered in favor of IPFS; one entered April