Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2236

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2236
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, we do not maintain key person insurance.
Our success also depends on our ability to continue to attract, retain and motivate highly skilled junior, mid-level and senior scientific
and medical personnel.

Our
employees, independent contractors, consultants, commercial partners, collaborators and vendors may engage in misconduct or other improper
activities, including noncompliance with regulatory standards and requirements.

We
are exposed to the risk of employee fraud or other illegal activity by our employees, independent contractors, consultants, commercial
partners, collaborators and vendors. Misconduct by these parties could include intentional, reckless and/or negligent conduct that fails
to comply with the laws of the FDA and other similar foreign regulatory bodies, provide true, complete and accurate information to the
FDA and other similar foreign regulatory bodies, comply with manufacturing standards we have established, comply with healthcare fraud
and abuse laws in the United States and similar foreign fraudulent misconduct laws, or report financial information or data accurately
or to disclose unauthorized activities to us. If we obtain FDA approval of any of our product candidates and begin commercializing those
products in the United States, our potential exposure under such laws will increase significantly, and our costs associated with compliance
with such laws will also increase. These laws may impact, among other things, our current activities with principal investigators and
research patients, as well as proposed and future sales, marketing and education programs. We adopted a code of ethical business conduct,
but it is not always possible to identify and deter misconduct by our employees, independent contractors, consultants, commercial partners
and vendors, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged
risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with
these laws or regulations. If any actions are instituted against us and we are not successful in defending ourselves or asserting our
rights, those actions could result in the imposition of civil, criminal and administrative penalties, damages, monetary fines, imprisonment,
disgorgement, possible exclusion from participation in government healthcare programs, additional reporting obligations and oversight
if we become subject to a corporate integrity agreement or other agreement to resolve allegations of non-compliance with these laws,
contractual damages, reputational harm, diminished profits and future earnings and the curtailment of our operations.

108

Risks
Related to Tax and Accounting Matters

Our
ability to use our net operating loss carryforwards and certain tax credit carryforwards may be subject to limitation.

We
may from