Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 484

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 484
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     F-8 

●Determination
                                            of the transaction price

This
step outlines what must be considered when establishing the transaction price, which is the amount the business expects to receive for
transferring the goods and services to the customer.

●Allocation
                                            of the transaction price to the performance obligations in the contract

This
step outlines guidelines for allocating the transaction price across the contract’s separate performance obligations, and is what
the customer agrees to pay for the goods and services.

●Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation

Revenue
can be recognized as the business meets each performance obligation. This step specifies how that should happen.

Contract Services

The
Company anticipates that the majority of its revenues to be recognized in the near future will result from discovery and monetization
of new drug targets and intellectual property from data use partnerships focused on analysis of rich proprietary data sets. The target
market for monetization will primarily be mid-size to large biopharmaceutical organizations seeking to build their new drug target pipeline.
A secondary revenue channel is fee for service partnerships with biopharmaceutical companies and other organizations of all sizes that
have challenges analyzing data throughout the drug development process. The Company provides the customer with an analysis of large complex
data sets using the Company’s proprietary AI/ML platform. This platform is aimed at predicting targets of interest, patterns, relationships,
anomalies, and molecular drivers of disease. The Company believes that there will be additional on-going work requested from partners;
therefore, the service model utilizes a master services agreement with work or task orders issued for discrete analysis performed at
the discovery, preclinical, or clinical stages of drug development. The Company will receive fees in cash, equity or other consideration
and, in some instances, the potential for rights to new intellectual property generated from the analysis. Once data analysis and the
analysis report are complete, the Company delivers the analysis set to the customer and recognizes revenue at that point in time.

Financial
Instruments

The
carrying value of short-term instruments, including cash and cash equivalents, accounts payable and accrued expenses approximate fair
value due to the relatively short period to maturity for these instruments. Fair value is defined as the exchange price that would be
received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure