Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 206

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 2
Chunk 206
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 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 Island License Agreement is still in effect and the license agreement has been
sublicensed to our subsidiary, Ocean Sihoma, Inc. On July 1, 2022, we amended the Elkurt/Rhode Island License Agreement to extend the
termination date to November 1, 2022, to extend the termination dates of the commercialization plan of the Rhode Island License Agreement
to an additional one year, and acknowledge the accounts payable due and terms of payment. On July 18, 2024, we amended the Rhode Island
License Agreement to eliminate the termination date with respect to the equity financing requirement and to extend the termination dates of the commercialization plan
of the Rhode Island License Agreement from an additional three years to five years.

Ayrton
Convertible Note Financing

On
May 15, 2023, we entered into a Securities Purchase Agreement (the “SPA”) with an accredited investor (the “Investor”)
for the sale of up to three Senior Secured Convertible Notes (each, a “Note” and collectively, the “Notes”),
which Notes are convertible into shares of our Common Stock,