Company: OCEA
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-011080
Chunk: 193

Company: Ocean Biomedical, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 8
Chunk 193
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 incur significant commercialization expenses related to product
manufacturing, sales, marketing and distribution, depending on where we choose to commercialize. Because of the numerous risks and uncertainties
associated with research, development and commercialization of biologic product candidates, we are unable to estimate the exact amount
of our working capital needs.

43

Ayrton Convertible
Note 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