Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 160

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1B
Chunk 160
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 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 0.5% to 1.5% of
net sales based on the terms of each of the Initial Brown License Agreements and (ii) 25% of all non-royalty sublicense income prior
to the first commercial sale, and 10% of non-royalty sublicense income thereafter, in the event that the Company enters into
sublicenses for the subject intellectual property. If net sales or non-royalty sublicense income are generated from know-how
products, the amounts otherwise due (royalty or nonroyalty sublicense income) shall be reduced by 50%. For the fiscal years
ended December 31, 2024 and 2023, the Company recorded annual license maintenance fees of $15,000 and $12,000,
respectively. For the fiscal year ended December 31, 2023, the Company recorded one-time license fees of $0.3
million.

The
Company is also required to pay Elkurt developmental and commercialization milestone payments for each of the Initial Brown License
Agreements ranging from $50,000
for the filing of an Investigational New Drug Application (“IND”), or the equivalent outside of the United States, to
$0.3
million for enrollment of the first patient in a Phase 3 clinical trial in the United States or