Company: BFRG
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009946
Chunk: 24

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 24
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 stages of development and using our proprietary
AI/ML technology to advance the development of such drugs, with the objective of creating near term value and then exiting and monetizing
as quickly as possible, preferably within approximately 30 months.

Critical
Accounting Policies and Estimates

Our
financial statements are prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates
and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosures. We evaluate
our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that
we believe to be reasonable under the circumstances. Our actual results could differ from these estimates. There have been no material
changes to our critical accounting policies and estimates as those described in our Form 10-K.

Financial
Operations Overview

Revenue

We
completed our first commercial service contract and recognized revenue in the amount of $65,000 in the third quarter of 2023. We did
not recognize any revenue in 2024. In February 2025, we announced our entry into a collaboration agreement with Eleison Pharmaceuticals
Inc., a Phase III oncology company focused on novel chemotherapeutic treatments for rare cancers. We are in discussions with other potential
partners, although there can be no assurance of entering into other business relationships in 2025 or beyond. We did not generate any
revenue during the three months ended March 31, 2025.

17

Research
and Development Costs and Expenses

Research
and development costs and expenses include development activities on our licensed drug candidates and our discovery efforts and collaborations.
In addition to fees paid to external service providers, we are also allocating costs for internal personnel working on these activities
as well as their efforts to develop our product and service offerings using bfLEAP™. We anticipate our research and development
costs could become significant as we execute on our business plan and begin conducting preclinical research and development activities
directed at securing development partners and filing an investigational new drug (IND) application for our licensed drug development
programs described in this filing, as well as under strategic partnerships and for other drug development programs we may acquire. Research
and development expenses are recorded in operating expenses in the period in which they are incurred. Estimates will be used in determining
the expense liability of certain costs where services have been performed but not yet invoiced. We will monitor levels of performance
under each significant contract for external services through communications