Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1791

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 12
Chunk 1791
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 2021 until paid and (ii) an annual license maintenance fee of $3,000 beginning on January 1, 2022, which increases to $4,000 on
January 1, 2028. In addition, upon successful commercialization, the Company is required to pay Elkurt (i) between 0.5% to 1.5% of
net sales based on the terms of each of the Initial Brown License Agreements and (ii) 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 nonroyalty sublicense income) shall be reduced by 50%. For the fiscal years
ended December 31, 2024 and 2023, the Company recorded annual license maintenance fees of $15,000 and $12,000,
respectively. For the fiscal year ended December 31, 2023, the Company recorded one-time license fees of $0.3
million.

The
Company is also required to pay Elkurt developmental and commercialization milestone payments for each of the Initial Brown License
Agreements ranging from $50,000
for the filing of an Investigational New Drug Application (“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. The Company is also responsible for reimbursement of patent costs. The Company records reimbursement of patent costs as
general and administrative costs in the consolidated statements of operations as incurred. For the fiscal years ended December 31,
2024 and 2023, the Company incurred reimbursed patent costs expenses to Brown University in the amount of $0.1
million in each year. As of December 31, 2024 and 2023, the Company reflected a balance due of $0.1
million in accrued expenses – related parties on its consolidated balance sheet.

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