Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 101

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1B
Chunk 101
---
 all intercompany accounts and transactions. The subsidiaries were formed to organize the Company’s therapeutic programs in order
to optimize multiple commercialization options and to maximize each program’s value.

Revision of Prior Period Financial Statements

During the three months ended March 31, 2025, the
Company determined that it had not appropriately reflected the fair value of certain warrants issued in July 2024. This resulted in an
overstatement of current liabilities, accumulated deficit as of September 30, 2024, and an overstatement of other expenses for the three
month and nine month periods ended September 30, 2024.

Based on an analysis of Accounting
Standards Codification ASC 250 – “Accounting Changes and Error Corrections” (“ASC 250”), Staff Accounting
Bulletin 99 – “Materiality” and Staff Accounting Bulletin 108 – “Considering the Effects of Prior Year Misstatements
when Quantifying Misstatements in Current Year Financial Statements”, the Company determined that these errors were immaterial to
the previously issued financial statements, and as such no restatement was necessary. Correcting prior period financial statements for
immaterial errors would not require previously filed reports to be amended.

The effect of the adjustments on the line items within
the Company’s consolidated balance sheet as of September 30, 2024 is as follows:
Schedule of Error Corrections and Prior Period Adjustments

    As previously
                                                                                reported  
    Adjustment  
    As adjusted 

    September 30, 2024 

    As previously
                                                                                reported  
    Adjustment  
    As adjusted 
  
    SPA Warrant 
    $3,573  
    $(1,824) 
    $1,749 
  
    Total current liabilities 
     33,649  
     (1,824) 
     31,825 
  
    Total liabilities 
     99,217  
     (1,824) 
     97,393 
  
    Accumulated deficit 
     (98,085) 
     1,824  
     (96,261)

The effect of the adjustments on the line items within
the Company’s consolidated statements of operations for the three and nine month periods ended September 30, 2024:

    As previously
                                                                                reported  
    Adjustment  
    As adjusted 

    Three months ended September 30, 2024 

    As previously
                                                                                reported  
    Adjustment  
    As adjusted