Company: OCEA
Filing Date: 2025-04-08
Form Type: 10-K
Source: 0001641172-25-003155
Chunk: 2514

Company: Ocean Biomedical, Inc.
Filing Date: 2025-04-08
Form: 10-K
Item: Item 1
Chunk 2514
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 the intellectual property rights sublicensed to us for academic research, educational and scholarly
purposes, and to publish resulting scientific findings.

The
FRGxPD-1 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 FRGxPD-1 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 clinical trial within one year following
the filing of an IND; completion of a Phase 2 clinical trial within approximately four years following completion of a Phase 1 clinical
trial; and the completion of a Phase 3 clinical trial within three years following the completion of a Phase 2 clinical trial. Elkurt
may also terminate the agreement if we do not complete a $10 million equity financing by December 31, 2025.

41

In
consideration for the rights conveyed by Elkurt under the FRGxPD-1 License Agreement, we must pay to Elkurt a non-refundable, annual
license maintenance fee. Beginning January 1, 2022, we are obligated to pay Elkurt an annual license maintenance fee (a) of $3,000 on
each until January 1, 2027, and (b) thereafter, an annual license maintenance fee of $4,000. We are also obligated to pay to Elkurt low,
single-digit royalties, on net sales of any FRGxPD-1 Products that are commercialized by us or our sublicensees. If we grant any sublicenses
under the FRGxPD-1 Licenses, we are obligated to pay to Elkurt an initial sublicense fee that is either 10% or 25% depending, respectively,
on whether we execute the sublicense after or before the first commercial sale of an FRG Product. We are also required to pay certain
milestone payments on an FRGxPD-1 Product-by-FRGxPD-1 Product basis upon the achievement of specified clinical and regulatory milestones,
totaling up to $0.7 million for each FRGxPD