Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 233

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1B
Chunk 233
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 In consideration for the new license entered into in July 2022 with JHU-APL, the Company issued to JHU-APL 39,879 shares
of common stock. Under the terms of the new license agreement, JHU-APL will be entitled to eight (8%) percent of net sales for the services
provided by the Company to other parties and three (3%) percent for internally developed drug projects in which the JHU-APL license was
utilized. The new license also contains tiered sub licensing fees that start at fifty (50%) percent and reduce to twenty-five (25%) percent
based on revenues. The Company and JHU-APL entered into Amendment Number 1 of the July 2022 license agreement pursuant to which 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 a result of this amendment, the minimum annual payments were $30,000 for 2022 and $60,000 for 2023, and the
minimum annual payments will be $300,000 for 2024 and beyond, all of which are creditable against royalties paid by us. 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.

We
intend to continue to evolve and improve bfLEAP™, either in-house or with development partners like JHU-APL. We plan to leverage
our proprietary AI/ML platform developed over several years at one of the top innovation institutions in the world, which has already
been successfully applied in multiple sectors.

We
have staffed our business using funds from our initial public offering and subsequent financings and have entered into partnerships and
relationships and recently completed our first commercial service contract with a leading rare disease non-profit organization for AI/ML
analysis of late-stage clinical data. We have also acquired the rights to a series of preclinical and early clinical drug assets from
universities, as