Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 1028

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 6
Chunk 1028
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 Agreement”) with Elkurt,
a licensee of Rhode Island Hospital, as subsequently amended throughout that year. Under the Rhode Island License Agreement, as amended,
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 a certain field.

For
the Rhode Island License Agreement, the Company was required to pay Elkurt (i) $0.1 million, due within 45 days of an equity financing
of at least $10.0 million or November 1, 2023, whichever comes first, and (i) an annual maintenance fee of $3,000 beginning on January
1, 2022, which increases to $4,000 annually on January 1, 2028.

Upon
successful commercialization, under the terms of the agreement, the
Company is also required to pay Elkurt (i) 1.5% of net sales and (ii) 25% of all nonroyalty 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 nonroyalty sublicense income are generated from know-how products, the amounts
otherwise due (royalty or non-royalty sublicense income) shall be reduced by 50%. The Company is also required to pay Elkurt
developmental and commercialization milestone payments under the Rhode Island License Agreement, ranging from $50,000
for the filing of an 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 the equivalent outside of the United
States. For the years ended December 31, 2024 and 2023, the Company has incurred reimbursed patent costs expenses to Rhode
Island Hospital in the amount of $0.1
million each year. As of December 31, 2024 and 2023, the Company reflected a balance due of $0.1 million and $0.2
million, respectively, in accrued expenses – related parties on its consolidated balance sheet.

The
contract term for the Rhode Island License Agreement began January 1, 2021 and will continue until the later of (i) the date on which
the