Company: BFRG
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023560
Chunk: 77

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 77
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 continue our operations, or if available, be on terms acceptable
to us. If we do not raise sufficient funds in a timely manner, among other things, we may be forced to delay, scale back or eliminate
some or all our research and product development programs and/or our capital expenditures or enter into arrangements on unfavorable terms.
We currently do not have commitments for future funding from any source.

Our
Strategy 

The
Company has a unique strategy designed to reduce risk and increase the frequency of cash flow. The first part of the strategy is to generate
revenues through strategic relationships with biopharma companies. These relationships will be structured as a combination of fees in
cash, equity, or other consideration and intellectual property based on the specific scope of the engagement. The objective of these
engagements will be to uncover valuable insights to reduce the risk and increase the speed of the drug development process which can
be achieved through manual or automated integration into the client’s workflow or analysis of discrete data sets.

In
the future, the second part of our strategy involves acquiring the rights to drugs at various 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 in the third quarter of 2023 and recognized revenue in the amount of $65,000. 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, and we recognized approximately $33,000
of revenue in the second quarter of 2025 pursuant to this agreement. We are in discussions with other potential partners, although there