Company: BFRG
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023560
Chunk: 78

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 78
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can be no assurance of entering into other business relationships in 2025 or beyond.

18

Cost
of Revenue

Cost
of revenue consists primarily of internal personnel and third-party consultants directly attributable to satisfaction of our performance
obligations under revenue arrangements.

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 with the service providers to reflect the actual amount
expended.

General
and Administrative Expenses 

General
and administrative expenses include personnel costs and costs associated with being a public company such as directors and officers (“D&O”)
insurance, audit and tax provider fees, legal fees, and exchange listing costs. Additionally, our general and administrative costs include
expenses for our business development, investor relations and marketing efforts. We anticipate our general and administrative expenses
increasing in the future to support our service offerings and clinical and pre-clinical research and development activities associated
with strategic partnering and collaborations.

Results
of Operations - Comparison of Three Months Ended June 30, 2025 and 2024

Collaboration
Revenue and Cost of Collaboration Revenue

We
recognized revenue and cost of revenue of approximately $33,000 and $27,000, respectively, for the three months ended June 30, 2025,
entirely related to our single collaboration agreement. The revenue and cost are for the completion of the initial deliverable under
the agreement. The remaining revenue and cost will be recognized upon completion of the remaining deliverables. We had no active customer
agreements in the comparable prior year period.

Operating
expenses

    June 30