Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 881

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 881
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 the Company under the license agreement, JHU-APL received
a warrant equal to five percent (5%) of the then fully diluted equity base of the Company, which was diluted following the closing of
the Company’s initial public offering. Under the terms of the 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. In
July 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 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 license supersedes the previous 2018
license. In consideration of the new license, the Company issued 39,879 shares of common stock to JHU-APL. Under the terms of the new
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.