Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 51

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 51
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 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 equal to
the lesser of (i) three percent (3%) of the total number of shares of common stock issued and outstanding on December 31 of the immediately
preceding calendar year or (ii) such number of shares of common stock as may be established by the Board.

The
Incentive Plan authorizes stock options, stock appreciation rights, and other forms of awards granted or denominated in the Company’s
common stock or units of the Company’s common stock, as well as cash bonus awards. The Incentive Plan retains flexibility to offer
competitive incentives and to tailor benefits to specific needs and circumstances. Any award may be structured to be paid or settled
in cash. Any