Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 139

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 139
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 growth
company, the Company may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting
companies. Specifically, as a smaller reporting company, the Company may choose to present only the two most recent fiscal years of
audited financial statements in its Annual Report on Form 10-K (which is what the Company has chosen to present) and, similar to
emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

Recent Accounting Pronouncements

In November 2023, the FASB issued
ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU
2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly
provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description
of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure
requirements under ASU 2023-07 are also required for public entities with a single reportable segment. ASU 2023-07 is effective for public
business entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December
15, 2024. The Company has concluded that the impact of adopting ASU 2023-07 is not material to its consolidated financial statements and
related disclosures.

In December 2023, the FASB issued
ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness
of income tax disclosures. This standard is effective for the Company for fiscal years beginning after December 15, 2024, and can be applied
on a prospective or retrospective basis. The Company is currently evaluating the effect that the adoption of this ASU may have on its
consolidated financial statements.

3. Business Combination and Backstop Agreement

Business Combination

On February 14, 2023, the Company
consummated its Business Combination pursuant to the terms of the Business Combination Agreement.

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Earnout Shares

In addition, pursuant to Business
Combination Agreement, Legacy Ocean’s stockholders prior to the Closing (the “Legacy Ocean Stockholders”) are entitled
to receive from the Company, in the aggregate, up to an additional