Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 551

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 551
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 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. We are also responsible for reimbursement
of patent costs. We recorded reimbursement of patent costs as general and administrative costs in the 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 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 sheets.

The
contract term for each of the Initial Brown License Agreements, as amended, continues until the later of the date on which the last valid
claim expires or ten years.

On
September 13, 2022, we entered into an additional Exclusive License Agreement (the “Brown Anti-PfGARP Small Molecules License Agreement”),
with Elkurt. Under the Brown Anti-PfGARP Small Molecules License Agreement, Elkurt grants us an exclusive, royalty-bearing license to
patent rights and a nonexclusive, royalty-bearing license to know-how, solely to make, have made, market, offer for sale, use, and sell
licensed products for use in the field of malaria research.

For
the Brown Anti-PfGARP Small Molecules License Agreement, we are required to pay Elkurt an initial license fee of $70,000, payable in
two installments of $35,000 each on April 1, 2023 and June 30, 2023. Beginning September 13, 2023, we are obligated to pay Elkurt an
annual license maintenance fee equal to (a) $3,000 until September 13, 2027, and (b) thereafter, an annual license maintenance fee of
$4,000. Upon successful commercialization, we are required to pay Elkurt 1.25% of net sales based on the terms under the Brown Anti-
PfGARP Small Molecules License Agreement. In addition, we must pay Elkurt 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 we enter into sublicenses for the subject intellectual