Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 120

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 120
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 value of the SPA Warrants issued in the exchange in 2024 at $3.8 million,
resulting in a loss on exchange of notes of $2.2 million. The Company has recorded a net loss on exchange of notes of $1.9 million as
other income (expense) on its condensed consolidated statement of operations for the three and nine months ended September 30, 2024.

As
part of the agreement, Chirinjeev Kathuria, the Company’s Chairman, and Poseidon Bio, LLC, an entity controlled by Dr. Kathuria,
also agreed to grant a proxy on all of their shares of the Company’s common stock to an independent third party, to vote them as
that party sees fit, until such time as the Notes are paid in full.

As
of September 30, 2024, the Company is in default of its obligations with respect to Ayrton LLC as a result of, among other things, its
delinquent SEC filings.

    12

Emerging
Growth Company and Smaller Reporting Company Status

We
qualify as an “emerging growth company” within the meaning of the Section 2(a)(19) of the Securities Act, as modified by
the Jumpstart Our Business Startup Act (“JOBS Act”) of 2012. The JOBS Act permits an “emerging growth company”
to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies
until those standards would otherwise apply to private companies. The Company has elected not to “opt out” of this provision
and, as a result, the Company will adopt new or revised accounting standards at the time private companies adopt the new or revised accounting
standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition
period or (ii) no longer qualifies as an emerging growth company.

The
Company is also a “smaller reporting company” and may continue to be a smaller reporting company if either (i) the market
value of the stock held by non-affiliates is less than $250 million or (ii) the Company’s annual revenue was less than $100 million
during the most recently completed fiscal year and the market value of the Company’s stock held by non-affiliates is less than
$700 million. If the Company is a smaller reporting company at the time that it ceases to be an emerging