Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1655

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 11
Chunk 1655
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 as of the
post-closing true-up, or $4.1
million and is reflected in non-current assets on the Company’s consolidated balance sheets as Investment in Virion. The
Company initially recorded a liability of $2.8
million for the estimated amount of the post-closing true-up, reflecting the $4.1
million reduced by the fair market value of the common stock issued pursuant to the Contribution Agreement at the time of the
contribution. The liability will be remeasured at each reporting period and the Company will record any changes to other
income/(expense) on the consolidated statement of operations. Based upon the closing price of the Company’s common stock at
December 31, 2023, the Company increased the liability for the post-closing true-up to $3.6
million and reflected and expense of $0.8
million for the change in the fair value of the Virion Contribution Liability in other income (expense) on its consolidated
statement of operations.

In
September 2024, the Company entered into an amendment to the Contribution Agreement with Virion, which was ratified and approved by the
Board of Directors of the Company on October 11, 2024. In the amendment, the Company agreed to contribute up to $9.0 million in cash
and/or shares of the Company’s common stock (the “Aggregate Capital Contribution”) in exchange for additional limited
liability company units in an amount sufficient to cause the Company’s ownership interest in Virion to equal 22% of Virion’s
issued and outstanding membership units, on a fully diluted basis. The Aggregate Capital Contribution will be credited for: a) $1.0 million
for amounts already received by Virion in connection with the original Contribution Agreement; and b) the aggregate proceeds actually
received by Virion in connection with the sale of 500,000 shares of the Company’s common stock. If the actual cash received by
Virion from the proceeds of the sale of the Company’s shares of common stock (the “Actual Contributions”) does not
equal the Aggregate Capital Contribution as of April 1, 2025 (the “Final Contribution Date”), the Company shall have the
option, but not the obligation, to make additional capital contributions to Virion, up to an amount equal to the difference between the
Aggregate Capital Contributions and the Actual Contributions (the “Final Contribution Amount”). The Final Contribution Amount
may be paid, at the Company’s election, in cash, through