Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 229

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 2
Chunk 229
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 The Common Stock Purchase Agreement expires after two years.

In
consideration for the commitments of White Lion to purchase Equity Line Shares, the Common Stock Purchase Agreement included issuing
initial commitment shares with a value of $0.8 million based upon the closing sale price two days prior to the filing of the initial
registration statement.

In
April 2023, the Common Stock Purchase Agreement was amended to fix the number of initial commitment shares at 75,000 shares to White
Lion, which had a fair value of $0.5 million upon issuance. The $0.5 million in commitment costs were recorded in other income (expense)
in our condensed consolidated statements of operations.

Effective
October 4, 2023, the Company and White Lion entered into the first amendment of the Common Stock Purchase Agreement (the “Amendment”).
The Amendment is intended to afford the Company greater flexibility and provide the Company an additional alternative to issue a fixed
price “Purchase Notice” under the Common Stock Purchase Agreement [at $7.00 per share if the market price for the Common
Stock exceeds $9.00 per share]. In addition, on November 2, 2023, White Lion purchased 41,677 shares of the Company’s common stock
under the Common Stock Purchase Agreement for which the Company received approximately $64 thousand. This facility is now deemed terminated.

Any
future proceeds earned from the sale of shares will be used to support funding of our ongoing operations and working capital.

Other
Commitments

License
Fees

Our
contractual obligations are expected to have an effect on our liquidity and cash flows in future periods. Under our license agreements
with our academic research institution partners, fixed license maintenance fees of $0.3 million are due within 15 days of financing of
at least $10.0 million and $0.1 million are due within 30 days of financing of at least $10.0 million. In addition, under these license
agreements, we are 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 fees are recorded in accounts payable.
The payment obligations under the collaboration agreements are contingent upon future events such as our achievement of specified development,
clinical, regulatory, and commercial milestones. As the timing of these future milestone payments are not known, we have not included
these fees in our condensed consolidated balance sheets as of September 30, 2024.