Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 180

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 180
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 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. For the three-month periods ended March 31, 2025, and 2024, the Company recorded annual license
maintenance fees of $3,000. As of March 31, 2025, the Company reflected a balance due of $0.1 million in accrued expenses – related
parties on its condensed consolidated balance sheet.

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 non-royalty 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 will also 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 three-month period ended March 31, 2025, the Company did not incur any reimbursed patent costs expenses to Rhode
Island Hospital, For the three-month period ended March 31, 2024, the Company has incurred reimbursed patent costs expenses to Rhode
Island Hospital in the amount of $0.1
million. As of March 31, 2025, the Company reflected a balance due of $0.2
million in accrued expenses – related parties on its condensed consolidated balance sheet.

The contract term for the Rhode
Island License Agreement began February 1, 2020, and will continue until the later of (i) the date on which the last valid claim expires
or (ii) fifteen years. Either party may terminate the Rhode Island License Agreement in certain situations, and as discussed above, the
next steps for the licensing agreements are still being negotiated. The Rhode