Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 360

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 360
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 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 percent (3%) for internally developed drug projects in which the JHU-APL license is utilized. The new license also contains
tiered sub licensing fees that start at 50% and reduce to 25% based on revenues. In addition, under the new license agreement, the minimum
annual royalty payments are $30,000 for 2022, $80,000 for 2023, and $300,000 per year for 2024 and beyond.

In
May 2023, the Company and JHU-APL entered into Amendment Number 1 of the July 2022 License Agreement whereby the Company gained access
to certain improvements including additional patents and knowhow in exchange for a series of payments totaling $275,000. The first of
these payments of $75,000 was paid in July 2023 and the remaining payments of $75,000, $75,000, and $50,000 are due in years 2025, 2026
and 2027, respectively. The amendment also reduced the 2023 minimum annual royalty payment to $60,000, all other financial terms remain
the same. As of December 31, 2024, we have accrued $300,000 of the 2024 minimum annual royalty payments, and the entire accrued balance
was paid in January 2025.

George
Washington University - Beta2-s