Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1893

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 13
Chunk 1893
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 Company recorded its share of this loss of approximately $0.8 million for its prorated share
of the net loss from the date of initial contribution agreement thru December 31, 2023. For the nine months ended September 30, 2024,
the Company decreased the liability for the post-closing true-up by $0.2 million and reflected a gain of $0.2 million for the change
in the fair value of the Virion Contribution Liability in other income (expense) on its condensed consolidated statement of operations.

Based
upon the terms of the 2024 amendment to the Contribution Agreement, the Company no longer had significant influence over the investee.
As a result, the investment in Virion is accounted for under the cost method effective with the ratification of the 2024 amendment to
the Contribution Agreement and the remaining liability for the post-closing true-up under the Contribution Agreement was reduced to zero
and is reflected in other income (expense) on the Company’s consolidated statement of operations for the fiscal year ended December
31, 2024.

    F-28

Stock
Options

2022
Stock Option and Incentive Plan

The
Company’s Board of Directors (“the Board”) approved and adopted the 2022 Stock Option and Incentive Plan and Form of
Non-Qualified Stock Option Agreement for Non-Employee Directors (the “Incentive Plan”) prior to the Closing of the Business
Combination.

The
maximum number of shares of common stock that may be initially issued or transferred pursuant to awards under the Incentive Plan equals
4,360,000 shares (the “Share Limit”). The Share Limit will automatically increase on the first trading day in January of
each calendar year during the term of the Incentive Plan, with the first such increase to occur in January 2024, by an amount equal to
the lesser of (i) three percent (3%) of the total number of shares of common stock issued and outstanding on December 31 of the immediately
preceding calendar year or (ii) such number of shares of common stock as may be established by the Board.

The
Incentive Plan authorizes stock options, stock appreciation rights, and other forms of awards granted or denominated in the Company’s
common stock or units of the Company’s common stock, as well as cash bonus awards. The Incentive Plan retains flexibility to offer
competitive incentives and to tailor benefits to specific needs and circumstances. Any award may