Ocean Biomedical, Inc. (NASDAQ:OCEA), a pharmaceutical company, announced Monday the dismissal of Deloitte & Touche LLP as its independent registered public accounting firm, effective December 2, 2024. The decision, made by the company's Board and communicated via an 8-K filing with the Securities and Exchange Commission, is not due to any disagreements on financial disclosures or auditing practices.
The previous reports from Deloitte & Touche LLP for the fiscal years ending December 31, 2023, and 2022, did not contain any adverse opinion or disclaimer. However, they included an explanatory paragraph highlighting substantial doubt about the company's ability to continue as a going concern. This concern was based on Ocean Biomedical's working capital deficiency, expected operational losses, and the necessity to secure additional funding.
Throughout the fiscal years mentioned and the interim period up until the dismissal date, there were no reported disagreements with Deloitte & Touche LLP on matters of accounting principles, practices, financial statement disclosure, or auditing scope or procedure. Moreover, there were no reportable events as referenced in Item 304(a)(1)(v) of Regulation S-K.
The change in certifying accountant comes at a time when Ocean Biomedical, categorized as an emerging growth company, is navigating significant financial challenges. According to InvestingPro analysis, the company's stock has declined over 53% in the past six months, though it currently appears undervalued based on Fair Value estimates.
The company has yet to announce the appointment of a new independent registered public accounting firm. For deeper insights into Ocean Biomedical's financial health and additional investment signals, investors can access more than 30 financial metrics and analysis tools through InvestingPro.
Additionally, Ocean Biomedical has entered into a revised agreement with Virion Therapeutics, solidifying a partnership through a $9 million deal. This strategic investment secures Ocean Biomedical a 22% ownership stake in Virion, representing a significant milestone for both companies. Should Virion's cash receipts fall short of the $9 million by April 1, 2025, Ocean Biomedical has the option to cover the difference.
In financial news, Ocean Biomedical has secured an additional $7.675 million in funding through additional secured notes and the issuance of equity.
The company also revised its earnout shares agreement, resulting in the issuance of 18 million restricted shares to pre-merger shareholders, and settled obligations with two institutional investors by issuing 225,000 shares of restricted common stock.
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