Company: BFRG
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009946
Chunk: 8

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 8
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 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.

Recent
Accounting Pronouncements

In
December 2023, the FASB issued ASU No. 2023-09: Income Taxes (Topic 740): Improvements to Income Tax Disclosures that requires
entities to disclose additional information about federal, state, and foreign income taxes primarily related to the income tax rate reconciliation
and income taxes paid. The new standard also eliminates certain existing disclosure requirements related to uncertain tax positions and
unrecognized deferred tax liabilities. The guidance is effective for the Company’s fiscal year ending December 31, 2025. The guidance
does not affect recognition or measurement in the Company’s consolidated financial statements.

The
Company does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if
adopted, would have a material effect on the accompanying financial statements.

3. Notes Payable

In
February 2025, the Company entered into an agreement to finance a portion of the premium for its directors and officers insurance. The
agreement provides for financing of $181,797 of the premium, repayments in 10 equal monthly installments of $18,743 each through December
2025 and accrues interest at 6.70%.

In
February 2024, the Company entered into an agreement to finance a portion of the premium for its directors and officers insurance. The
agreement provided for financing of $561,885 of the premium, repayments in 10 equal