Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 164

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 164
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 the
Board. Unless terminated earlier by the Board and subject to any extension that may be approved by stockholders, the authority to grant
new awards under the Incentive Plan will terminate on the tenth anniversary of its establishment.

Stock Options to Non-Employee Directors

Under the Non-employee Director
Compensation Policy, upon initial election or appointment to the Board, each new non-employee director will be granted under the Incentive
Plan a one-time grant of a non-statutory stock option to purchase 75,000 shares of its common stock on the date of such director’s
election or appointment to the Board, issuable under the incentive plan. These will vest in substantially equal monthly installments over
three years, subject to the director’s continued service as a member of the Board through each applicable vesting date.

On February 15, 2023, 75,000
options were granted to each of the non-employee directors at a strike price of $10.00 per share.

The estimated fair value of a
non-statutory stock option to purchase common stock on the grant date was $3.73 per share and was determined using the Black-Scholes Merton
model. The valuation used the following assumptions:

Expected volatility: 75%

Expected term: 6.5 years

Risk-Free Interest Rate: 4%

Dividend Yield: The Company has
not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been estimated to
be zero.

The stock-based compensation
expense recorded for each of the three months ended March 31, 2025 and 2024, was $0.2 million and was recorded within general and administrative
expense in the Company’s condensed consolidated statements of operations, as discussed below.

The following table summarizes
stock option activity during the three months ended March 31, 2025 and 2024:

Schedule
of Stock Option Activity

    (in thousands) 
    Stock Options  
    Weighted Average Exercise Price  
    Weighted Average Remaining Contractual Life (in years)  
    Aggregate Intrinsic Value (in thousands) 
  
    Outstanding at January 1, 2024 
     600,000  
    $10.00  
     2.1  
     — 
  
    Options granted 
     —  
     —  
     —  
     — 
  
    Options cancelled or forfeited