Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 151

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 151
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2.8 million for the estimated amount of the post-closing
true-up, reflecting the $4.1 million reduced by the fair market value of the common stock issued pursuant to the Contribution Agreement
at the time of the contribution. The liability will remeasured at each reporting period and the Company will record any changes to other
income (expense) on the condensed consolidated statement of operations. Based upon the closing price of the Company’s common stock
at September 30, 2024, the Company increased the liability for the post-closing true-up to $3.4 million and reflected an expense 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 for the three months ended September 30, 2024. 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.

The
investment in Virion is accounted for as an equity method investment under ASC 323 as the Company has significant influence over the
investee. For the three month and nine month periods ended September 30, 2024, Virion incurred a net loss of approximately $1.0 million
and $6.6 million, respectively. The Company recorded its share of this loss for the three month and nine month periods ended September
30, 2024 of approximately $0.5 million and $3.3 million, respectively.

    24

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