Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3417

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3417
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 the rights conveyed by Elkurt under the Brown Anti-PfGARP Small Molecules License Agreement, we must pay to Elkurt
a non-refundable, annual license fee. Beginning September 13, 2023 we are obligated to pay Elkurt an annual license maintenance fee equal
to (a) $3,000 until September 13, 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 Brown Anti-PfGARP Small Molecules Products that are commercialized by us or
our sublicensees. If we grant any sublicenses under the Brown Anti-PfGARP Small Molecules Licenses, 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 a Brown Anti-PfGARP Small Molecules Product. We are also required to pay certain milestone payments on a Brown
Anti-PfGARP Small Molecules Product-by-Brown Anti-PfGARP Small Molecules Product basis upon the achievement of specified clinical and
regulatory milestones, totaling up to $0.7 million for each Brown Anti-PfGARP Small Molecules Product. To the extent net sales or non-royalty
sublicense income are generated from any Brown Anti-PfGARP Small Molecules Products that are commercialized by us or our sublicensees
that incorporate or otherwise utilizes the Brown Anti-PfGARP Small Molecules Know-How but not covered by any Brown Anti-PfGARP Small
Molecules Patents, we may reduce the applicable royalty rates and non-royalty income rates by half. These payment amounts are identical
to the amounts owed by Elkurt to Brown University under the Upstream Brown Anti-PfGARP Small Molecules License, except that Elkurt is
not obligated to pay Brown University any annual maintenance fees. We also are required to pay Elkurt $0.1 million in the event that
we or one of sublicensees sublicenses this technology to a major pharmaceutical company or if the license agreement or any sublicense
agreement for this technology is acquired by a major pharmaceutical company. A major pharmaceutical company is one that is publicly traded,
with market capitalization of at least $5 billion and has been engaged in drug discovery, development, production and marketing for no
less