Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 117

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 1
Chunk 117
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 Financing

Refer to Note 7, Senior Secured
Convertible Notes, in Part I, Item 1. “Financial Statements” for additional detail about our convertible notes and the
warrants issued in conjunction with these loans.

Short-Term Loans

Refer to Note 6, Short-Term
Loans, in Part I, Item 1. “Financial Statements” for additional detail about our short-term loans and the warrants issued
in conjunction with these loans.

Other Commitments

License Fees

Our contractual obligations are
expected to have an effect on our liquidity and cash flows in future periods. Under our license agreements with our academic research
institution partners, fixed license maintenance fees of $0.3 million are due within 15 days of financing of at least $10.0 million and
$0.1 million are due within 30 days of financing of at least $10.0 million. In addition, under these license agreements, we are 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 fees are recorded in accounts payable. The payment obligations under the collaboration
agreements are contingent upon future events such as our achievement of specified development, clinical, regulatory, and commercial milestones.
As the timing of these future milestone payments are not known, we have not included these fees in our condensed consolidated balance
sheets as of March 31, 2025. None of these were paid as of March 31, 2025.

Refer to Note 12, License
and Manufacturing Agreements, in Part I, Item 1. “Financial Statements” for further detail around timing of license fees
due.

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 $50.0 million. As of March 31, 2025, we have contingent
compensation and bonuses in the amount of $16.9 million to certain members of senior management as well as $1.0 million in contingent
vendor payments. These amounts will not be paid if the contingencies do not occur. Since the payment of obligations under the employment
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