Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 1376

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 16
Chunk 1376
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8, the Company entered into an exclusive, world-wide, royalty-bearing license from JHU-APL. The license covers three (3)
issued patents, one (1) new provisional patent application, non-patent rights to proprietary libraries of algorithms and other trade
secrets, as well as modifications and improvements. In October 2021, the Company executed an amendment to the original license for improvements
and new advanced analytics capabilities. In consideration of the rights granted to the Company under the license agreement, JHU-APL received
a warrant equal to five percent (5%) of the then fully diluted equity base of the Company, which was diluted following the closing of
the Company’s initial public offering. Under the terms of the license agreement, JHU-APL will be entitled to an eight percent (8%)
royalty on net sales for the services provided by the Company as well as fifty percent (50%) of all sublicense revenues received by the
Company on services and sublicenses in which the JHU-APL licensed technology was utilized. In addition, the Company is required to pay
JHU-APL an annual maintenance fee of $1,500. Minimum annual royalty payments are $20,000 for 2022, $80,000 for 2023, and $300,000 per
year for 2024 and beyond. If cumulative annual royalty payments do not reach these levels, the amount due to JHU-APL to reach the annual
minimum is due by January 1st of the following year. Failure to make annual royalty payments is considered a material breach
under the agreement and, upon notice from JHU-APL of a material breach, the Company will have 60 days to cure the material breach. In
July 2022, the Company entered into an exclusive, world-wide, royalty-bearing license from JHU-APL for the additional technology developed
to enhance the bfLEAP™ platform. The new license provides additional intellectual property rights including patents, copyrights,
and knowhow to be utilized under the Company’s bfLEAP™ analytical AI/ML platform. This license supersedes the previous 2018
license. In consideration of the new license, the Company issued 39,879 shares of common stock to JHU-APL. Under the terms of the new
license agreement, JHU-APL will be entitled to eight percent (8%) of net sales for the services provided by the Company to other parties
and three