Company: BFRG
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023560
Chunk: 26

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 26
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 license. 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 decline 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 know-how in exchange
for a series of payments totaling $275,000. The first of these payments for $75,000 was paid in July 2023, the second of these payments
for $75,000 was paid in June 2025, and the remaining payments of $75,000 and $50,000 are due in 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 are $30,000 for 2022, $60,000 for 2023, and $300,000 for 2024 and beyond, all of which are creditable against
royalties paid by us. As of June 30, 2025, all minimum annual royalty payments through 2024 have been paid, the Company has accrued $150,000
of the $300,000 minimum annual royalty for 2025, and the Company has accrued $6,250 of the $75,000 annual license fee due in June 2026.

Our
objective is to utilize bfLEAP™, our AI/ML platform, with a precision medicine approach toward drug development with biopharmaceutical
collaborators, as well as our own internal clinical development programs. We believe the bfLEAP™ platform is ideally suited for
evaluating pre-clinical and clinical trial data generated in translational research and clinical trial settings in order to lead to faster,
less expensive drug approvals.

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Our
aim is to improve the odds of success in each stage of developing medicine