Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 214

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 2
Chunk 214
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, human resources, information technology, pre-commercial and support personnel functions.
General and administrative expenses also include direct and allocated facility-related costs as well as insurance costs and professional
fees for accounting and audit services, legal, patent, consulting, investor and public relations.

General
and administrative expenses for the fiscal years ended December 31, 2024 and 2023 included stock-based compensation expense related to the grant
of a warrant to purchase common stock to a consultant in 2023, and stock option grants to all of our non-employee directors as of February
15, 2023, accounting, legal and public relations fees, and deferred offering costs from the Business Combination.

We
anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued
research activities and development of our product candidates and prepare for potential commercialization activities. We also anticipate
that we will incur significantly increased accounting, audit, legal, regulatory, tax, compliance with Nasdaq and SEC requirements, and
director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company.
If and when we believe a regulatory approval of a product candidate appears likely, we anticipate an increase in payroll and other employee-related
expenses as a result of our preparation for commercial operations as it relates to the sales and marketing of that product candidate.

Income
Taxes

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