Company: BFRG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023496
Chunk: 13

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 13
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 determinable fair value. Pursuant to
this alternative, the investment will be carried at its estimated fair value calculated as its cost minus any impairment. The Company
will adjust the investment to fair value only when it identifies observable price changes in orderly transactions for identical or similar
investments of the same issuer. The Company will evaluate the investment at each reporting period to determine whether the investment
is impaired.

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. The Company has elected to account for its single investment
using the measurement alternative and it is considered a financial instrument accounted for at fair value on a non-recurring basis. 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 fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The
Company utilizes a three-level valuation hierarchy for disclosures of fair value measurements, defined as follows:

Level
1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level
2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are
observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

Level
3 - inputs to the valuation methodology are unobservable and significant to the fair value. The Company does not have any assets or liabilities
that are required to be measured and recorded at fair value on a recurring basis.

Recent
Accounting Pronouncements

In
December 2023, the FASB issued ASU No. 2023-09 which 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 is in the process of evaluating the effects of this guidance on its condensed consolidated
financial statements. 

In