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

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 10
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Company recognizes revenue based on the following five step model:

●Identification
                                            of the contract with a customer

This
step outlines the criteria that must be met when establishing a contract with a customer to supply goods or services.

●Identification
                                            of the performance obligations in the contract

This
step describes how distinct performance obligations in the contract must be handled.

●Determination
                                            of the transaction price

This
step outlines what must be considered when establishing the transaction price, which is the amount the business expects to receive for
transferring the goods and services to the customer.

●Allocation
                                            of the transaction price to the performance obligations in the contract

This
step outlines guidelines for allocating the transaction price across the contract’s separate performance obligations, and is what
the customer agrees to pay for the goods and services.

●Recognition
                                            of revenue when, or as, the Company satisfies a performance obligation

Revenue
can be recognized as the business meets each performance obligation. This step specifies how that should happen.

Contract
Services 

The
Company anticipates that the majority of its revenues to be recognized in the near future will result from discovery and monetization
of new drug targets and intellectual property from data use partnerships focused on analysis of rich proprietary data sets. The target
market for monetization will primarily be mid-size to large biopharmaceutical organizations seeking to build their new drug target pipeline.
A secondary revenue channel is fee-for-service partnerships and collaborations with biopharmaceutical companies and other organizations
of all sizes that have challenges analyzing data throughout the drug development process. The Company provides the customer with an analysis
of large complex data sets using the Company’s proprietary AI/ML platform. This platform is aimed at predicting targets of interest,
patterns, relationships, anomalies, and molecular drivers of disease. The Company believes that there will be additional on-going work
requested from partners; therefore, the service model utilizes a master services agreement with work or task orders issued for discrete
analysis performed at the discovery, preclinical, or clinical stages of drug development. The Company will receive fees in cash, equity
or other consideration and, in some instances, the potential for rights to new intellectual property generated from the analysis. Once
data analysis and the analysis report are complete, the Company delivers the analysis set to the customer and recognizes revenue at that
point in time.

Investments

The
Company currently has a single investment in equity securities issued by a privately held entity. The Company entered into a strategic
collaboration agreement and