Company: OCEA
Filing Date: 2025-01-13
Form Type: 10-Q
Source: 0001493152-25-001880
Chunk: 153

Company: Ocean Biomedical, Inc.
Filing Date: 2025-01-13
Form: 10-Q
Item: Item 8
Chunk 153
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 Black-Scholes Merton model. The valuation used the following assumptions:

Expected
volatility: 75%

Expected
term: 6.5
years

Risk-Free
Interest Rate: 4%

Dividend
Yield: The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend
yield has been estimated to be zero.

    25

The
stock-based compensation expense recorded for the three month and six month periods ended September 30, 2024 was $0.2 million and $0.6
million, respectively and was recorded within general and administrative expense in the Company’s condensed consolidated statements
of operations, as discussed below.

The
following table summarizes stock option activity during the nine months ended September 30, 2024:

 Schedule
of Stock Option Activity

    (in thousands) 
    Stock Options  
    Weighted Average Exercise Price  
    Weighted Average Remaining Contractual Life
 (in years)  
    Aggregate Intrinsic Value
 (in thousands) 
  
    Outstanding at January 1, 2024 
     600,000  
    $10.00  
     2.1  
     - 
  
    Options granted 
     -  
     -  
     -  
     - 
  
    Options cancelled or forfeited 
     -  
     -  
     -  
     - 
  
    Outstanding at September 30, 2024 
     600,000  
    $10.00  
     1.4  
     - 

The
aggregate intrinsic value in the above table is calculated as the difference between the fair value of the Company’s common stock
as of September 30, 2024 and the exercise price of the stock options. As of September 30, 2024, the total unrecognized compensation related
to unvested stock option awards granted was $1.1 million, which the Company expects to recognize over a weighted-average period of approximately
1.4 years. No stock options were exercised during the period.

2022
Employee Stock Purchase Plan

The
Board approved and adopted the 2022 Employee Stock Purchase Plan (the “ESPP”) prior to the Closing of the Business Combination.

Subject
to adjustment, 2,180,000 shares of common stock are available for purchase pursuant to the exercise of options under the ES