Company: OCEA
Filing Date: 2025-02-26
Form Type: DEF 14A
Source: 0001493152-25-008279
Chunk: 23

Company: Ocean Biomedical, Inc.
Filing Date: 2025-02-26
Form: DEF 14A
Chunk 23
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 to make a number of other assumptions, including the volatility of the underlying shares, the risk-free interest rate, and expected dividends. Expected volatility is based on the historical share volatility of a set of comparable publicly traded companies over a period of time equal to the expected term of the grant or option.

Stock-based compensation for the fiscal year ended December 31, 2023 consisted of costs related to (i) stock options granted to non-employee directors in the first quarter of 2023 and (ii) warrants issued to advisors and consultants, as discussed below. Stock-based compensation for the fiscal year ended December 31, 2022 solely consisted of costs related to the profit interests in Poseidon.

The stock-based compensation allocation was based upon the grantees’ vested interests and the amount of time spent in their respective operating department. The following table summarizes the allocation of stock-based compensation for the years ended December 31, 2024 and 202 3:

|                                      | (in thousands) |   | 2024 |     |   |  2023 |
|:-------------------------------------|:---------------|:--|-----:|:----|:--|------:|
| Research and development expense (1) |                | $ |    - |     | $ |     - |
| General and                          
 administrative expense (2)           |                |   |  745 |     |   | 1,205 |
| Total stock-based compensation       
 expense                              |                | $ |  745 |     | $ | 1,205 |

| (1) | As                                                                                                                                     
 discussed above, certain executives and employees of the Company hold profit interests in Poseidon. The fair value of these profit     
 interest was recorded on the grant dates at fair value utilizing an option-pricing model under which interests are valued by creating  
 a series of call options with exercise prices based on the liquidation preferences and conversion terms of each equity class, adjusted 
 for a discount for the lack of marketability to account for a lack of access to an active public market. As of the end of fiscal       
 2022, the profit interests were fully amortized.                                                                                       |

| (2) | In                                                                                                                                       
 March 2023, the Company issued warrants to advisors and consultants as discussed below in Note 10, Warrants, which resulted              
 in $0.6 million of stock-based compensation expense in 2023. Refer to discussion below for further detail. Also included in              
 general and administrative expense is the