Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 661

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 661
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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 December 31, 2023 and 2024.

Leases

As
of December 31, 2023 and 2024, the Company is not a party to any leasing agreements.

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 December 31, 2024 and 2023.

For
further discussion on license fees recorded during the period, refer to Note 13, License and Manufacturing Agreements.

    F-26

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 December 31, 2024 and 2023, we have contingent compensation and bonuses in the amount of $16.2
million and $12.4 million, respectively, to certain members of senior management.

As
of December 31, 2024 and 2023, 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 are contingent upon
these future events, which are not considered probable as such future events are deemed outside of our control, we have not included
these amounts in our consolidated financial statements. During the fiscal year ended December 31, 2023, $0.9 million of contingent compensation
was paid and recorded in general and administrative expenses on the Company’s consolidated statement of operations.