Company: BFRG
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023560
Chunk: 23

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 23
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 Company will also reimburse JHU for previously incurred and ongoing patent costs. Under the terms of the license agreement,
JHU will be entitled to three and one-half percent (3.5%) royalty on net sales by the Company in which the JHU license was utilized.
In addition, the Company is required to pay JHU minimum annual royalty payments of $5,000 for 2022, $10,000 for 2023, $20,000 for 2024,
$30,000 for 2025 and $50,000 for 2026 and each year after until the first commercial sale, after which the annual minimum royalty shall
be $250,000. The license agreement also contains milestone payments for clinical development steps through the approval of an NDA and
commercialization. As of June 30, 2025, the balance of accrued expense related to this license agreement was $15,000 of the $30,000 for
2025. 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 

In
October 2022, the Company entered into an exclusive, world-wide, royalty-bearing license from 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. In consideration for the rights granted to the Company under the license agreement,
JHU and IOCB received a staggered upfront license fee of $100,000 and the Company reimbursed JHU and IOCB for previously incurred patent
costs. Under the terms of the license agreement, JHU and IOCB will be entitled to a four percent (4.0%) royalty on net sales by the Company
in which the JHU and IOCB license was utilized. In addition, the Company is required to pay JHU and IOCB minimum annual royalty payments
of $5,000 for 2026, $10,000 for 2027, $20,000 for 2028, $30,000 for 2029 and $50,000 for