Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 669

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 669
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last business day of the offering period. The purchase price of each share of common stock issued pursuant to the exercise of an option
under the ESPP on an exercise date will be 85% (or such greater percentage as specified by the administrator of the ESPP) of the lesser
of: (a) the fair market value of a share of common stock date the option is granted, which will be the first day of the offering period,
and (b) the fair market value of a share of common stock on the exercise date, which will the last business day of the offering period.

The
Board has discretion to amend the ESPP to any extent and in any manner it may deem advisable, provided that any amendment that would
be treated as the adoption of a new plan for purposes of Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”)
will require stockholder approval. The Board may suspend or terminate the ESPP at any time. No purchases were made as of December 31,
2024 and 2023.

Profits
Interests in Poseidon

Legacy
Ocean’s founder and then sole stockholder was issued 17,454,542 shares of Legacy Ocean’s common stock (“Founders Shares”)
upon the formation of Legacy Ocean on January 2, 2019. After inception and prior to the Business Combination, the majority of the Founders
Shares were contributed to Poseidon Bio, LLC (“Poseidon”), with Poseidon subsequently granting Class A and Class B profit
interests to Legacy Ocean’s founder and other certain executives and employees, respectively, and resulting in Legacy Ocean’s
founder holding 100% of the voting power of Poseidon. Further, after inception and prior to the Business Combination, Legacy Ocean implemented
reverse stock splits which are appropriately reflected as applicable to the consolidated financial statements.

These
profit interests grants to the Company’s controlling shareholder were deemed to be transactions incurred by the shareholder
and within the scope of ASC 718, Stock Compensation. As a result, the related transactions by the shareholder were pushed
down into the Company’s consolidated financial statements. As of December 31, 2024 and 2023, Legacy Ocean’s founder held 100%
of the voting power and 68%
of the equity interests in Poseidon.

Stock-Based
Compensation

The
Company recognizes stock-based compensation costs for equity-based compensation awards granted to employees, nonemployees, and directors
in accordance with U.S.