Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3216

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 9
Chunk 3216
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 United States, to
$0.3
million for enrollment of the first patient in a Phase 3 clinical trial in the United States or the equivalent outside of the United
States. The Company is also responsible for reimbursement of patent costs. The Company records reimbursement of patent costs as
general and administrative costs in the consolidated statements of operations as incurred. For the fiscal years ended December 31,
2024 and 2023, the Company incurred reimbursed patent costs expenses to Brown University in the amount of $0.1
million in each year. As of December 31, 2024 and 2023, the Company reflected a balance due of $0.1
million in accrued expenses – related parties on its consolidated balance sheet.

The
contract term for each of the Initial Brown License Agreements, as amended, continues until the later of (i) the date on which the last
valid claim expires or (ii) ten years. Either party may terminate each of the Initial Brown License Agreements in certain situations,
including Elkurt being able to terminate the Initial Brown License Agreements at any time and for any reason after May 1, 2024, as discussed
above. For the oncology programs, three of the license agreements have been sublicensed to the Company’s subsidiary, Ocean ChitoRx
Inc, and for the fibrosis program, one license agreement has been sublicensed to the Company’s subsidiary, Ocean ChitofibroRx Inc.

Brown
Anti-PfGARP Small Molecules License Agreement

On
September 13, 2022, the Company entered into an additional Exclusive License Agreement (the “Brown Anti-PfGARP Small Molecules
License Agreement”) with Elkurt. Under the Brown Anti-PfGARP Small Molecules License Agreement, Elkurt grants the Company an exclusive,
royalty-bearing license to patent rights and a nonexclusive, royalty-bearing license to know-how, solely to make, have made, market,
offer for sale, use, and sell licensed products for use in the field of malaria research.

    F-37

For
the Brown Anti-PfGARP Small Molecules License Agreement, the Company is required to pay Elkurt (i) an initial license fee of $70,000
which was paid during the second quarter of 2023 and (ii) an annual license maintenance fee of $3,000 beginning on September 13, 2023,
which increases to $4,000 annually on September 13, 202