Company: BFRG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023496
Chunk: 35

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 35
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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 entered into a collaboration agreement with Eleison Pharmaceuticals Inc. (“Eleison”),
a Phase III oncology company focused on novel chemotherapeutic treatments for rare cancers, and we recognized approximately $83,000 and
$117,000, respectively, of revenue in the three and nine months ended September 30, 2025 pursuant to this agreement. Additionally, in
June 2025, we entered into a strategic collaboration agreement with Sygnature Discovery (“Sygnature”), pursuant to which
we established a joint marketing arrangement where Sygnature will introduce our BullFrog Data Networks™ platform to Sygnature’s
global biopharma client base; however, we have not yet recognized any revenue under this collaboration. We are in discussions with other
potential partners, although there can be no assurance of entering into other business relationships in 2025 or beyond.

20

Cost
of Revenue

Cost
of revenue consists primarily of the allocation of personnel costs (e.g. payroll, benefits, and consulting fees) of our employees and
third-party consultants directly attributable to the satisfaction of our performance obligations under our revenue arrangements.

Research
and Development Costs and Expenses

Research
and development costs and expenses include development activities related to 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 over time 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