Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 90

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 90
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to purchase shares of common stock during specified offering periods, with such offering periods not to exceed 27 months. During each
offering period, eligible employees will be granted an option to purchase shares of common stock on the last business day of the offering
period. The purchase price of each share of common stock issued pursuant to the exercise of an option under the ESPP on an exercise date
will be 85% (or such greater percentage as specified by the administrator of the ESPP) of the lesser of: (a) the fair market value of
a share of common stock date the option is granted, which will be the first day of the offering period, and (b) the fair market value
of a share of common stock on the exercise date, which will the last business day of the offering period.

The Board has discretion to amend
the ESPP to any extent and in any manner, it may deem advisable, provided that any amendment that would be treated as the adoption of
a new plan for purposes of Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) will require stockholder
approval. The Board may suspend or terminate the ESPP at any time. No purchases were made as of March 31, 2025 or 2024.

Profit Interests in Poseidon

Legacy Ocean’s founder
and then sole stockholder was issued 17,454,542 shares of Legacy Ocean’s common stock (“Founders Shares”) upon the formation
of Legacy Ocean on January 2, 2019. After inception and prior to the Business Combination, the majority of the Founders Shares were contributed
to Poseidon Bio, LLC (“Poseidon”), with Poseidon subsequently granting Class A and Class B profit interests to Legacy Ocean’s
founder and other certain executives and employees, respectively, and resulting in Legacy Ocean’s founder holding 100% of the voting
power of Poseidon. Further, after inception and prior to the Business Combination, Legacy Ocean implemented reverse stock splits which
are appropriately reflected as applicable to the condensed consolidated financial statements.

These profit interests grants
in the Company’s controlling shareholder were deemed to be transactions incurred by the shareholder and within the scope of ASC
718, Stock Compensation. As a result, the related transactions by the shareholder were pushed down into the Company’s condensed
consolidated financial statements. As of March 31, 2025 and 2024, Legacy Ocean’s founder held 100% of the voting