Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 170

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 170
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 31, 2023, the Company owed RJS Consulting, LLC $0.1 million. The amounts were recorded as accounts payable on the
condensed consolidated balance sheets and were expensed as accounting fees in general and administrative expenses in 2021.

Transactions
with Virion

As
discussed in Note 9 – Equity, the Company entered into the Contribution Agreement with Virion on October 11, 2023, resulting
in the Company acquiring a 50% membership interest in Virion. As a result, Virion is considered a related party; however, as of September
30, 2024 the Company has not engaged in any transactions with Virion with the exception of the Contribution Agreement.

14.
Subsequent Events

Management
has evaluated subsequent events to determine if events or transactions occurring through the filing date of this Quarterly Report on
Form 10-Q require adjustments to or disclosures in the Company’s condensed consolidated financial statements. Aside from the items
discussed below, the Company did not have any subsequent events that required recognition or disclosure in the condensed consolidated
financial statements for the nine months ended September 30, 2024.

Virion
Agreement

In
September 2024, the Company entered into an amendment to the contribution agreement with Virion, which was ratified and approved by the
Board of Directors of the Company on October 11, 2024. In the amendment, the Company agreed to contribute up to $9.0 million in cash
and/or shares of the Company’s common stock (the “Aggregate Capital Contribution”) in exchange for additional limited
liability company units in an amount sufficient to cause the Company’s ownership interest in Virion to equal 22% of Virion’s
issued and outstanding membership units, on a fully diluted basis. The Aggregate Capital Contribution will be credited for: a) $1.0 million
for amounts already received by Virion in connection with the original contribution agreement; and b) the aggregate proceeds actually
received by Virion in connection with the sale of 500,000 shares of the Company’s common stock. If the actual cash received by
Virion from the proceeds of the sale of the Company’s shares of common stock (the “Actual Contributions”) does not
equal the Aggregate Capital Contribution as of April 1, 2025 (the “Final Contribution Date”), the Company shall have the
option, but not the obligation, to make additional capital contributions to Virion, up to an amount equal to the difference