Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 770

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 7
Chunk 770
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 by the Company in which
the JHU license was utilized. In addition, the Company is required to pay JHU minimum annual royalty payments of $5,000 for 2022, $10,000
for 2023, $20,000 for 2024, $30,000 for 2025 and $50,000 for 2026 and each year after until the first commercial sale after which the
annual minimum royalty shall be $250,000. The license agreement also contains milestone payments for clinical development steps through
the approval of an NDA and commercialization. As of December 31, 2024 and 2023, the balance of accrued expense related to this license
agreement was $20,000 and $10,000, respectively. The Company assessed whether the license should be capitalized and determined that the
licensed program is in the early stage and therefore may not be recoverable; the Company expensed the license fee and will expense development
costs until commercial viability is likely.

Johns
Hopkins University – Mebendazole Prodrug License 

In
October 2022, the Company entered into an exclusive, world-wide, royalty-bearing license from JHU and the Institute of Organic Chemistry
and Biochemistry (“IOCB”) of the Czech Academy of Sciences for rights to commercialize N-substituted prodrugs of Mebendazole
that demonstrate improved solubility and bioavailability. The license covers prodrug compositions and use for treating disease as claimed
in multiple U.S. and worldwide patent applications. In consideration for the rights granted to the Company under the license agreement,
JHU and IOCB will receive a staggered upfront license fee of $100,000. The Company will also reimburse JHU and IOCB for previously incurred
patent costs. Under the terms of the license agreement, JHU and IOCB will be entitled to four percent (4.0%) royalty on net sales by
the Company in which the JHU and IOCB license was utilized. In addition, the Company is required to pay JHU and IOCB minimum annual royalty
payments of $5,000 for 2026, $10,000 for 2027, $20,000 for 2028, $30,000 for 2029 and $50,000 for 2030 and each year after until the
first commercial sale, after which, the annual minimum royalty shall be $150,000. The license agreement also contains milestone payments
for patent