Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 73

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1
Chunk 73
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 public offering. Under the terms of the 2018 License Agreement, JHU-APL
will be entitled to an eight percent (8%) royalty on net sales for the services provided by the Company as well as fifty percent (50%)
of all sublicense revenues received by the Company on services and sublicenses in which the JHU-APL licensed technology was utilized.
In addition, the Company is required to pay JHU-APL an annual maintenance fee of $1,500. Minimum annual royalty payments are $20,000
for 2022, $80,000 for 2023, and $300,000 per year for 2024 and beyond. If cumulative annual royalty payments do not reach these levels,
the amount due to JHU-APL to reach the annual minimum is due by January 1st of the following year. Failure to make annual royalty payments
is considered a material breach under the agreement and, upon notice from JHU-APL of a material breach, the Company will have 60 days
to cure the material breach.

On
July 8, 2022, the Company entered into an exclusive, world-wide, royalty-bearing license from JHU-APL for the additional technology developed
to enhance the bfLEAP™ platform (the “2022 License Agreement”). The new license provides additional intellectual property
rights including patents, copyrights, and knowhow to be utilized under the Company’s bfLEAP™ analytical AI/ML platform. This
2022 License Agreement supersedes the previous 2018 License Agreement. In consideration of the new license, the Company issued 39,879
shares of common stock to JHU-APL. Under the terms of the 2022 License Agreement, JHU-APL will be entitled to eight percent (8%) of net
sales for the services provided by the Company to other parties and three percent (3%) for internally developed drug projects in which
the JHU-APL license is utilized. The new license also contains tiered sub licensing fees that start at 50% and reduce to 25% based on
revenues. In addition, under the new license agreement, the minimum annual royalty payments are $30,000 for 2022, $80,000 for 2023, and
$300,000 per year for 2024 and beyond, all of which are creditable by royalties. The financial terms of the new license agreement replace
the original terms from the 201