Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2015

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 7A
Chunk 2015
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 et al. (comprised of Meteora Special Opportunity Fund I, LP; Meteora Capital Partners,
LP; and Meteora Select Trading Opportunities Master, LP, together “the Plaintiffs”), filed an action against the Company
in the Supreme Court of the State of New York, New York County. The Plaintiffs claim that the Seller VWAP Triggering Event related to
the Backstop Agreement as described in Note 2, Basis of Presentation and Summary of Significant Accounting Policies and Note 3,
Business Combination and Backstop Agreement, occurred on November 3, 2023 when the Company’s stock price traded below $4.00
per share for 30 of the preceding 45 trading
days. The Plaintiffs set a Maturity Date for February 2024, at which time the Plaintiffs allege the entire Maturity Consideration became
due and owed to the Plaintiffs in the amount of $6.3
million. The Company filed its opposition to
the motion on September 6, 2024 and cross-moved for an extension of its time to answer or otherwise respond to the Complaint. Discussions
with the Plaintiffs and the Court are on-going. The Company has concluded at this time that a loss is not probable nor reasonably estimable,
as such no liability has been recorded as of December 31, 2023 and 2024.

Leases

As
of December 31, 2023 and 2024, the Company is not a party to any leasing agreements.

License
Fees

The
Company has entered into license agreements with its academic research institution partners. Under these license agreements, the Company
is required to make annual fixed license maintenance fee payments. The Company is also required to make payments upon successful completion
and achievement of certain milestones as well as royalty payments upon sales of products covered by such licenses. The payment obligations
under the license and collaboration agreements are contingent upon future events such as achievement of specified development, clinical,
regulatory, and commercial milestones. As the timing of these future milestone payments are not known, the Company has not included these
fees in the consolidated balance sheets as of December 31, 2024 and 2023.

For
further discussion on license fees recorded during the period, refer to Note 13, License and Manufacturing Agreements.

    F-26

Contingent
Compensation and Other Contingent Payments

Under
the management employment agreements, we have salaries and bonuses that are contingently