Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 153

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 153
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 fully offset by a valuation
allowance. The valuation allowance increased by $1,583,168 and $1,151,827 during the years ended December 31, 2024 and 2023, respectively.

As
of December 31, 2024, the Company has available for federal income tax purposes a gross net operating loss carryforward of approximately
$10.8 million and a gross state net operating loss carryforward of approximately $4.7 million. The federal net operating loss carryforward
does not expire and may be used to offset future taxable income. The state gross net operating loss begins to expire in 2043. Utilization
of some of the federal and state net operating loss carryforwards are subject to annual limitations due to the “change in ownership”
provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of
net operating losses and credits before utilization.

The
Company has provided a valuation allowance against the full amount of the net operating loss benefit and its other net deferred tax assets
since, in the opinion of management, based upon the earnings history of the Company, it is more likely than not that the future tax benefits
of the Company’s net deferred tax assets will not be realized. All or portion of the remaining valuation allowance may be reduced
in future years based on an assessment of earnings sufficient to fully utilize these potential tax benefits.

The
Company has incurred net operating losses since inception and it did not have unrecognized tax benefits as of December 31, 2024 and 2023,
and does not anticipate this to change significantly over the next 12 months. The Company will recognize interest and penalties accrued
on any unrecognized tax benefits as a component of income tax expense.

The
Company files income tax returns in the U.S. and certain state jurisdictions. The Company is not currently under examination in these
jurisdictions for any tax year. The Company’s tax years beginning with 2021 are open tax years. Because of net operating losses
and research credit carryovers, substantially all the Company’s tax years remain open to examination.

     F-16 

Reconciliations
between the statutory federal income tax rate and the effective income tax rate of income tax expense for the years ended December 31,
2024 and 2023 are as follows:

 Effective Income Tax Rate of Income Tax Expense

    December 31,  
    December 31, 

    2024