Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 93

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 93
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ual obligations are expected to have an effect on our liquidity and cash flows in future periods. Under our license agreements
with our academic research institution partners, fixed license maintenance fees of $0.3 million are due within 15 days of financing of
at least $10.0 million and $0.1 million are due within 30 days of financing of at least $10.0 million. In addition, under these license
agreements, we are 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 fees are recorded in accounts payable.
The payment obligations under the collaboration agreements are contingent upon future events such as our achievement of specified development,
clinical, regulatory, and commercial milestones. As the timing of these future milestone payments are not known, we have not included
these fees in our condensed consolidated balance sheets as of September 30, 2024. None of these were paid as of September 30, 2024.

Refer
to Note 12, License and Manufacturing Agreements, in Part I, Item 1. “Financial Statements” for further detail around
timing of license fees due.

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 $50.0 million.
As of September 30, 2024, we have contingent compensation and bonuses in the amount of $14.8 million to certain members of senior management
as well as $1.0 million in contingent vendor payments. These amounts will not be paid if the contingencies do not occur. Since the payment
of obligations under the employment 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 condensed consolidated financial statements. None
of these were paid as of September 30, 2024.

47

Development
and Manufacturing Services Agreement

We
have entered and anticipate we will continue to enter into contracts in the normal course of business with external organizations such
as CMOs, CROs and other third parties for the manufacture of our product candidates and to support clinical trials and preclinical research
studies and testing. We expect that these contracts will be generally cancelable by us,