Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2106

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 2106
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 requests along with plans for achieving the extended and/or amended milestones. Although Elkurt is
obliged to reasonably extend or amend those milestones, it may terminate the agreement for failure to achieve development milestones
after giving us reasonable opportunity to cure. The Anti-CTLA4 License Agreement sets forth the following future development milestones:
the filing of an IND within two years after commencing IND-enabling studies; the completion of a Phase 1 clinical trial within one year
following the filing of an IND; completion of a Phase 2 clinical trial within approximately four years following completion of a Phase
1 clinical trial; and the completion of a Phase 3 clinical trial within approximately three years following the completion of a Phase
2 clinical trial. Elkurt may also terminate the agreement if we do not complete a $10 million equity financing by December 31, 2025.

In
consideration for the rights conveyed by Elkurt under the Anti-CTLA4 License Agreement, we are obligated to pay to Elkurt a non-refundable,
annual license maintenance fee. Beginning January 1, 2022, we are obligated to pay Elkurt an annual license maintenance fee (a) of $3,000
until January 1, 2027, and (b) thereafter, an annual license maintenance fee of $4,000. We are also obligated to pay to Elkurt low, single-digit
royalties, on net sales of any Anti-CTLA4 Products that are commercialized by us or our sublicensees. If we grant any sublicenses under
the Anti-CTLA4 License Agreement, we are obligated to pay to Elkurt an initial sublicense fee that is either 10% or 25% depending, respectively,
on whether we execute the sublicense after or before the first commercial sale of an Anti-CTLA4 Product. We are also required to pay
certain milestone payments on an Anti-CTLA4 Product-by-Anti-CTLA4 Product basis upon the achievement of specified clinical and regulatory
milestones, totaling up to $0.7 million for each Anti-CTLA4 Product. To the extent net sales or non-royalty sublicense income are generated
from any Anti-CTLA4 Products that are commercialized by us or our sublicensees that incorporate or otherwise utilizes the Anti-CTLA4
Know-How but not covered by any Anti-CTLA4 Patents, we may reduce the applicable royalty rates and non-royalty income rates by half.
These