Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 178

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 178
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 March 31, 2024, the Company incurred
reimbursed patent costs expenses to Brown University in the amount of $0.1 million.

The contract term for each of
the Initial Brown License Agreements, as amended, continues until the later of (i) the date on which the last valid claim expires or (ii)
ten years. Either party may terminate each of the Initial Brown License Agreements in certain situations, including Elkurt being able
to terminate the Initial Brown License Agreements at any time and for any reason after May 1, 2024, as discussed above. For the oncology
programs, three of the license agreements have been sublicensed to the Company’s subsidiary, Ocean ChitoRx Inc, and for the fibrosis
program, one license agreement has been sublicensed to the Company’s subsidiary, Ocean ChitofibroRx Inc.

Brown Anti-PfGARP Small Molecules License Agreement

On September 13, 2022, the Company
entered into an additional Exclusive License Agreement (the “Brown Anti-PfGARP Small Molecules License Agreement”) with Elkurt.
Under the Brown Anti-PfGARP Small Molecules License Agreement, Elkurt grants the Company an exclusive, royalty-bearing license to patent
rights and a nonexclusive, royalty-bearing license to know-how, solely to make, have made, market, offer for sale, use, and sell licensed
products for use in the field of malaria research.

For the Brown Anti-PfGARP Small
Molecules License Agreement, the Company is required to pay Elkurt (i) an initial license fee of $70,000 which was paid during the second
quarter of 2023 and (ii) an annual license maintenance fee of $3,000 beginning on September 13, 2023, which increases to $4,000 annually
on September 13, 2028. Upon successful commercialization, based on the terms of the agreement, the Company is required to pay Elkurt (i)
1.25% of net sales and (ii) Elkurt 25% of all non-royalty sublicense income prior to the first commercial sale, and 10% of non-royalty
sublicense income thereafter, in the event that the Company enters into sublicenses for the subject intellectual property. If net sales
or non-royalty sublicense income are generated from know-how products, the amounts otherwise due (royalty or non-royalty sublicense income)
shall be reduced