Company: BFRG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023496
Chunk: 12

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 12
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step describes how distinct performance obligations in the contract must be handled.

●Determination
                                            of the transaction price

This
step outlines what must be considered when establishing the transaction price, which is the amount the business expects to receive for
transferring the goods or services to the customer.

●Allocation
                                            of the transaction price to the performance obligations in the contract

This
step outlines guidelines for allocating the transaction price across the contract’s separate performance obligations, and is what
the customer agrees to pay for the goods or services.

●Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation

Revenue
can be recognized as the business meets each performance obligation. This step specifies how that should happen.

Contract
Services 

The
Company anticipates that the majority of its revenues that may be recognized will result from discovery and monetization of new drug
targets and intellectual property from data use partnerships focused on analysis of rich proprietary data sets. The target market for
monetization will primarily be mid-size to large biopharmaceutical organizations seeking to build their new drug target pipeline through
collaboration agreements with companies such as BullFrog. A secondary revenue channel is fee-for-service partnerships and collaborations
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 related to such agreements in either cash, the equity of its partners, 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.

    8

Investments

The
Company currently has a single investment in equity securities issued by a privately held entity. The Company entered into a strategic
collaboration agreement and received such equity securities as remuneration for services rendered. The Company has elected to account
for this investment using the measurement alternative as the investment does not have a readily