Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 704

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 5
Chunk 704
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rosis and/or infectious disease programs into the clinic in the next 12 to 24 months.

On
December 31, 2020, we executed a Development and Manufacturing Services Agreement with Lonza AG and affiliate Lonza Sales AG (“Lonza”).
We engaged Lonza (and Lonza affiliates) for the development and manufacture of certain products and services along with assistance in
developing the product OCX-253. Under this agreement, Lonza will perform the following key activities in two stages in support of our
IND-enabling program plan: first, to perform a manufacturability assessment of the OCX- 253 monoclonal antibody drug candidates, generate
or arrange to be generated synthetic genes and single gene vectors and vector constructions, and conduct gene vector construct testing;
and second, to generate and assess growth and productivity for cell lines to be used for synthesizing OCX-253 drug candidate. The agreement
provides that we will pay for all raw materials and related fees. Further, the agreement stipulates immediate 100% payment of invoices
for any stage of work worth less than GBP 50,000, and deferral of 50% of payment for any stage of work worth more than GBP 50,000 to
the release of applicable batches or completion of applicable services.

137

In
December 2020, the sole stockholder of Legacy Ocean contributed 100% of his founders shares in the amount of 17,112,298 shares to Poseidon
Bio, LLC (“Poseidon”) which became the sole stockholder of Legacy Ocean. In February 2021, Poseidon transferred 342,244 shares
of Legacy Ocean’s common stock back to Legacy Ocean’s founder. In February 2021, Poseidon amended and restated its operating
agreement to allow additional members into Poseidon by issuing Class A units and Class B units in which Legacy Ocean’s founder
is the sole Class A unit holder who holds 100% of the voting power of Poseidon. In addition, certain executives and employees were granted
Class B unit profit interests in Poseidon. These profit interests grants in Legacy Ocean’s controlling shareholder were deemed
to be transactions incurred by the shareholder and within the scope of Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) 718, Stock Compensation. As a result, the related transactions by the stockholder were pushed
down into our consolidated financial statements. As of March 31, 2023, Legacy Ocean’s founder