Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 395

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 395
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Contingent
Compensation and Other Contingent Payments

Under
the management employment agreements, we have salaries and bonuses that are contingently payable upon financing, collectively called
contingent compensation, that are contingently payable based only upon our first cumulative capital raise of at least $50 million. As
of December 31, 2024, we have contingent compensation and bonuses in the amount of $16.2 million to certain members of senior management.

As
of December 31, 2024 and 2023, we also had $1.0 million of contingent vendor payments, which are also contingently payable based
only upon our first cumulative capital raise of at least $50 million.

These
amounts will not be paid if the contingencies do not occur. Since the payment of obligations under these agreements are contingent
upon these future events, which are not considered probable as such future events are deemed outside of our control, we have not
included these amounts in our consolidated financial statements. During the fiscal year ended December 31, 2023, $0.9 million of
contingent compensation was paid and recorded in general and administrative expenses on the Company’s consolidated statement
of operations. There were no payments of contingent compensation paid during the year ended December 31, 2024.

Other
Contractual Obligations

We
have entered and anticipate we will continue to enter into contracts in the normal course of business with external organizations such
as CMOs, CROs and other third parties for the manufacture of our product candidates and to support clinical trials and preclinical research
studies and testing. We expect that these contracts will be generally cancelable by us, and we anticipate that payments due upon cancellation
will consist only of payments for services provided or expenses incurred, including noncancelable obligations of our service providers,
up to the date of cancellation. We accrued CMO services in the amount of $8 thousand and $0.1 million for the fiscal years ended December 31,
2024 and 2023, respectively, under the Development and Manufacturing Services Agreement with Lonza in developing the product OCX-253.

Short-Term
Loans

As
of December 31, 2024, we had the following outstanding short-term loans (in thousands):

    Loan 
    Principal
                                                                               Amount
                                                                               Outstanding 
    Annual 
Interest Rate 
    Outside 
Maturity Date
  
    March Second Street Loan 
    $700  
     15%