Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 553

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 553
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the Rhode Island License Agreement, we are required to pay Elkurt $0.1 million, due within 45 days of an equity financing of at
least $10 million or May 1, 2022, whichever comes first, and beginning on January 1, 2022, an additional $3,000 annual maintenance
fee thereafter, until January 1, 2028, at which point the annual maintenance fee will become $4,000 per year. We are also required
to pay Elkurt 1.5% of net sales under the Rhode Island License Agreement. In addition, we must pay 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 we
enter 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 by 50%. We will also pay
Elkurt developmental and commercialization milestone payments under the Rhode Island License Agreement, ranging from $50,000 for the
filing of an IND, or the equivalent outside of the United States, to $0.3 million for enrollment of the first patient in a Phase 3
clinical trial in the United States or the equivalent outside of the United States. For the fiscal years ended December 31, 2024 and
2023, the Company has incurred reimbursed patent costs expenses to Rhode Island Hospital in the amount of $0.1 million each year. As
of December 31, 2024 and 2023, the Company reflected a balance due of $0.1 million and $0.2 million, respectively in accrued
expenses – related parties on its consolidated balance sheet. With respect to a July 19, 2024 amendment, we paid Rhode Island
Hospital $0.1 million.

The
contract term for the Rhode Island License Agreement began February 1, 2020 and will continue until the later of the date on which the
last valid claim expires or fifteen years. Either party may terminate the Rhode Island License Agreement in certain situations, including
Elkurt being able to terminate the license agreement at any time and for any reason by May 1, 2022, if we have not raised at least $10
million in equity financing by then. Currently, the Rhode