Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 161

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 161
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3, when the Company’s stock price traded below $4.00
per share for 30 of the preceding 45 trading days. The Plaintiffs set a Maturity Date for February 2024, at which time the Plaintiffs
allege the entire Maturity Consideration became due and owed to the Plaintiffs in the amount of $6.3
million. The Company filed its opposition to the motion on September 6, 2024, and cross-moved for an extension of its time to
answer or otherwise respond to the Complaint. The court denied the Plaintiffs’ motion to dismiss the Company’s counterclaims, and the matter is now
in discovery. Discussions with the Plaintiffs and the Court are on-going. The Company has concluded at
this time that a loss is not probable nor reasonably estimable, as such no liability has been recorded as of March 31, 2025.

License Fees

The Company has entered into
license agreements with its academic research institution partners. Under these license agreements, the Company is required to make annual
fixed license maintenance fee payments. The Company is 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 and
collaboration agreements are contingent upon future events such as achievement of specified development, clinical, regulatory, and commercial
milestones. As the timing of these future milestone payments are not known, the Company has not included these fees in the consolidated
balance sheets as of March 31, 2025 and December 31, 2024.

For further discussion on license
fees recorded during the period, refer to Note 12, License and Manufacturing Agreements.

    23

Contingent Compensation and Other Contingent
Payments

Under the management employment
agreements, we have salaries and bonuses that are contingently payable upon financing, collectively called contingent compensation, that
are contingently payable based only upon our first cumulative capital raise of at least $50 million. As of March 31, 2025, we have contingent
compensation and bonuses in the amount of $16.9 million to certain members of senior management.

We also have $1.0 million of contingent
vendor payments, which are also contingently payable based only upon our first cumulative capital raise of at least $50 million.

These amounts will not be paid
if the contingencies do not occur. Since the payment of obligations under these agreements