Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 3411

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1A
Chunk 3411
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 Patents, and
a nonexclusive, royalty-bearing license under certain protocols, data, expression and purification methods, information and other know-how,
or the Chit1 Know-How, relating to Chit1 small molecules, or Chit1 Molecules. Under such licenses that we obtained from Elkurt, or the
Chit1 Licenses, we have the worldwide rights to make, have made, market, offer for sale, use and sell in the field of pulmonary fibrosis
and other fibrotic conditions any products or services that are either covered by the Chit1 Patents or incorporates or otherwise utilizes
any Chit1 Know-How, or any materials that are sold in conjunction with any such products or services, in each such case an Chit1 Product.
On January 29, 2020, Elkurt obtained from Brown the necessary licenses, with the rights to sublicense, under the Chit1 Patents and the
Chit1 Know-How, or the Upstream Brown Chit1 License, to grant us the Chit1 Licenses as described above. Brown and Elkurt, on behalf of
Brown, retained the rights to practice the intellectual property rights sublicensed to us for academic research, educational and scholarly
purposes, and to publish resulting scientific findings.

The
Chit1 License Agreement requires us to achieve future development milestones by certain dates. Recognizing the unpredictability of clinical
development, the agreement allows us to request amendments and/or extensions to these milestones by providing Elkurt with a reasonable
explanation for such requests along with plans for achieving the extended and/or amended milestones. Although Elkurt is obliged to reasonably
extend or amend those milestones, it may terminate the agreement for failure to achieve development milestones after giving us reasonable
opportunity to cure. The Chit1 License Agreement sets forth the following future development milestones: the filing of an IND within
two years after commencing IND-enabling studies; the completion of a Phase 1/2 clinical trial within two years following the filing of
an IND; and the completion of a Phase 3 clinical trial within approximately three years following the completion of a Phase 1/2 clinical
trial. Elkurt may also terminate the agreement if we do not complete a $10 million equity financing by December 31, 2025.

42

In
consideration for the rights conveyed by Elkurt under the Chit1 License Agreement, we must pay to Elkurt a non-refundable, annual license
maintenance