Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 177

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 177
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$10.0 million in equity financing by May 1, 2024, and (ii) extended the dates of the commercialization plan of the license agreement to
an additional three years.

    31

For each of the Initial
Brown License Agreements, as amended, the
Company is required to pay Elkurt (i) a maintenance fee of $67,000 increased by interest at the rate of 1% per month from October
15, 2021, until paid and (ii) an annual license maintenance fee of $3,000 beginning on January 1, 2022, which increases to $4,000 on
January 1, 2028. In addition, upon successful commercialization, the Company is required to pay Elkurt (i) between 0.5% to 1.5% of
net sales based on the terms of each of the Initial Brown License Agreements and (ii) 25% of all non-royalty 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%. For the three-month
periods ended March 31, 2025 and 2024, the Company recorded annual license maintenance fees of $15,000.
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.

The Company will also pay Elkurt
developmental and commercialization milestone payments for each of the Initial Brown License Agreements ranging from $50,000 for the filing
of an Investigational New Drug Application (“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. The Company is also
responsible for reimbursement of patent costs. The Company records reimbursement of patent costs as general and administrative costs in
the condensed consolidated statements of operations as incurred. For the three-month period ended March 31, 2025, the Company did not
incur any reimbursed patent costs expenses to Brown University, For the three-month period ended