Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 77

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 77
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,500,000
if the drug successfully completes Phase II and III clinical trials and is approved for sale and marketing by the United States FDA.
Future milestones on sales revenue are $1 million on the first $20 million in sales revenue, $2 million in the first-year cumulative
sales revenue exceeds $100 million, $10 million in the first-year cumulative sales revenue exceeds $500 million, and $20 million in the
first-year cumulative sales revenue exceeds $1 billion. As of December 31, 2024 and 2023, the balance of accrued expense related to this
license agreement was $20,000 and $10,000, respectively. The Company assessed whether the license should be capitalized and determined
that the licensed program is in the early stage and therefore may not be recoverable; the Company expensed the license fee and will expense
development costs until commercial viability is likely.

Johns
Hopkins University – Mebendazole Prodrug License 

On
October 13, 2022, the Company entered into an exclusive, worldwide, royalty-bearing license with JHU and the Institute of Organic Chemistry
and Biochemistry (“IOCB”) of the Czech Academy of Sciences for rights to commercialize N-substituted prodrugs of mebendazole
that demonstrate improved solubility and bioavailability. The license covers prodrug compositions and use for treating disease as claimed
in multiple U.S. and worldwide patent applications. The term of the agreement began on October 13, 2022 and continues until the date
of expiration of the last to expire patent, or for 20 years from the effective date of the agreement if no patents are issued. The license
can be terminated by the Company upon 90 days’ written notice, or by the licensor in the event of any material breach of the license
that is not cured by the Company within 30 days.

In
consideration for the rights granted to the Company under the license agreement, JHU and IOCB will receive a staggered upfront license
fee of $100,000. The Company also reimbursed JHU and IOCB for previously incurred patent costs totaling $33,265 and will be responsible
for reimbursing licensors for future patent costs. Under the terms of the license agreement, the licensors will be entitled to a four
percent (4%) royalty on net sales subject to annual minimums upon first commercial sale of a licensed product, as well as sublicense
or assignment fees in the event the Company sublicenses or