Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 508

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 3
Chunk 508
---
 piece of objective negative evidence evaluated was the cumulative loss incurred
over the three-year period ended December 31, 2024. Such objective evidence limits the ability to consider other subjective evidence,
such as our projections for future growth.

On
the basis of this evaluation, as of December 31, 2024 and 2023, a full valuation allowance of $22.6 million and $20.8 million, respectively,
have been recorded, as it is more likely than not that none of the deferred tax assets will be realized.

    F-36

13.
License and Manufacturing Agreements

Elkurt/Brown
License Agreements

In
2020, the Company entered into four separate Exclusive License Agreements (the “Initial Brown License Agreements”) with Elkurt,
Inc.(“Elkurt”), a licensee of Brown University, which were subsequently amended in 2022 and 2023. Elkurt is a company formed
by the Company’s scientific co-founders and members of our Board, Jack A. Elias, M.D., former Dean of Medicine and current Special
Advisor for Health Affairs to Brown University, and Jonathan Kurtis, M.D., PhD, Chair of the Department of Pathology and Laboratory Medicine
at Brown University. Under the Initial Brown License Agreements, Elkurt grants the Company exclusive, royalty-bearing licenses to patent
rights and nonexclusive, royalty-bearing licenses to know-how, solely to make, have made, market, offer for sale, use, and sell licensed
products for use in certain fields.

The
latest amendment, executed on November 13, 2023, (i) extended the date after which Elkurt can terminate the license agreements if the
Company has not raised at least $10.0 million in equity financing by May 1, 2024 and (ii) extended the dates of the commercialization
plan of the license agreement to an additional three years.

For
each of the Initial Brown License Agreements, as amended, the
Company is required to pay Elkurt (i) a maintenance fee of $67,000 increased by interest at the rate of 1% per month from October
15, 2021 until paid and (ii) an annual license maintenance fee of $3,000 beginning on January 1, 2022, which increases to $4,000 on
January 1, 2028. In addition, upon successful commercialization, the Company is required to pay Elkurt (i) between 0