Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 550

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 4
Chunk 550
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 to an additional two years. On August 25, 2022, we amended the four Initial Brown License Agreements to extend the termination
dates to November 1, 2023 and to extend the termination dates of the commercialization plan of the license agreements from an additional
two years to three years. For each of the Initial Brown License Agreements, as amended, we are required to pay Elkurt a maintenance fee
of $67,000 increased by interest at the rate of 1% per month from October 15, 2021 until paid. In addition, beginning on January 1, 2022
and each year thereafter until January 1, 2027, we are required to pay an annual license maintenance fee of $3,000. Beginning on January
1, 2028, and every year thereafter the annual license maintenance fee shall become $4,000 per year. Upon successful commercialization,
we are required to pay Elkurt between 0.5% to 1.5% of net sales based on the terms under the Initial Brown License Agreements. In addition,
we must pay Elkurt, under each of the Initial Brown License Agreements, 25% of all non-royalty sublicense income prior to the first commercial
sale, and 10% of non-royalty sublicense income thereafter, in the event that we enter into sublicenses for the subject intellectual property.
If net sales or non-royalty sublicense income are generated from know-how products, the amounts otherwise due (royalty or non-royalty
sublicense income) shall be reduced by 50%. For the fiscal years ended December 31, 2024 and 2023, the Company recorded annual license
maintenance fees of $12 thousand in each year. For the fiscal year ended December 31, 2023, the Company recorded license fees of $0.3
million. On June 13, 2024, we amended the Initial Brown License Agreements such that $0.2 million of past due license fees were paid
on July 17, 2024, and $0.2 million of past due license fees and $0.1 million in past due patent expenses were to be paid by October 1,
2024, which remain unpaid and are subject to negotiation between the parties.

We
will also pay Elkurt developmental and commercialization milestone payments for each of the Initial Brown License Agreements ranging
from $50,000 for the filing of an