Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 47

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 1
Chunk 47
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 of the preceding 45 trading
days. The Plaintiffs set a Maturity Date for February 2024, at which time the Plaintiffs allege the entire Maturity Consideration became
due and owed to the Plaintiffs in the amount of $6.3
million. The Company filed its opposition to
the motion on September 6, 2024 and cross-moved for an extension of its time to answer or otherwise respond to the Complaint. Discussions
with the Plaintiffs and the Court are on-going. The Company has concluded at this time that a loss is not probable nor reasonably estimable,
and as such no liability has been recorded as of September 30, 2024.

License
Fees

The
Company entered into license agreements with its academic research institution partners. Under these license agreements, the Company
is required to make annual fixed license maintenance fee payments. The Company is also required to make payments upon successful completion
and achievement of certain milestones as well as royalty payments upon sales of products covered by such licenses. The payment obligations
under the license and collaboration agreements are contingent upon future events such as achievement of specified development, clinical,
regulatory, and commercial milestones. As the timing of these future milestone payments are not known, the Company has not included these
fees in the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023.

For
further discussion on license fees recorded during the period, refer to Note 12, License and Manufacturing Agreements.

Contingent
Compensation and Other Contingent Payments

Under
the management employment agreements, we have salaries and bonuses that are contingently payable upon financing, collectively called
contingent compensation, that are contingently payable based only upon our first cumulative capital raise of at least $50 million. As
of September 30, 2024, we have contingent compensation and bonuses in the amount of $15.5 million to certain members of senior management.

We
also have $1.0 million of contingent vendor payments, which are also contingently payable based only upon our first cumulative capital
raise of at least $50 million.

These
amounts will not be paid if the contingencies do not occur. Since the payment of obligations under these agreements are contingent upon
these future events, which are not considered probable as such future events are deemed outside of our control, we have not included
these amounts in our consolidated financial statements. During the fiscal year ended December 31,