Company: BFRG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023496
Chunk: 28

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 28
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sale, after which, the annual minimum royalty shall be $150,000. The license agreement also contains milestone payments for patent grants,
clinical development steps through the approval of an NDA and commercialization. As of September 30, 2025, the balance of accrued expense
related to this license agreement was $0. 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 will expense the license fee and development costs until
commercial viability is likely.

Lieber
Institute for Brain Development Partnership  

In
September 2023, the Company entered into a Data Use and Technology Partnership Agreement (the “Data Use Agreement”) and a
related Memorandum of Understanding (“MOU”) with the Lieber Institute for Brain Development (“LIBD”), a nonprofit
medical research organization focused on mental health disorders. The partnership is intended to combine LIBD’s proprietary brain-related
datasets with the Company’s artificial intelligence and machine learning capabilities to support drug discovery and development
activities.

Under
the Data Use Agreement, LIBD granted the Company a limited, royalty-free, non-transferable license to access and use certain curated
LIBD datasets solely for the application of artificial intelligence and machine learning to drug development, excluding diagnostic uses.
The license was exclusive for an initial one-year term beginning upon receipt of the first significant tranche of data and was subsequently
extended. The Company is responsible for all costs associated with the development plan and is required to provide LIBD with the resulting
deliverables upon completion of the exclusivity period.

The
MOU outlines key terms for a future commercial agreement governing the potential commercialization of products or services derived from
LIBD data. Under the proposed structure, LIBD would receive royalties on net sales and a percentage of sublicense revenue, with rates
varying based on the source of commercialization. The Company has also agreed to provide LIBD with any such products or services free
of charge for LIBD’s internal research use.

9.Subsequent
                                            Events  

The
Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the unaudited condensed
consolidated financial statements are issued.

Other
than as disclosed in this Note 9 and as may be disclosed elsewhere in the notes to the accompanying unaudited condensed consolidated
financial statements, there have been no subsequent events that require adjustment or disclosure in the accompanying unaudited condensed
consolidated financial