Company: BFRG
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023560
Chunk: 44

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 44
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 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.

    8

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: 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. Investments

The
Company’s sole investment is in the form of equity securities in a private entity. The Company entered into a strategic
collaboration agreement and received such equity securities as remuneration for services rendered. The investment is initially
valued at approximately $58,000
(see Note 4). The Company has elected the measurement alternative and, accordingly, it is carried at its estimated