Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 211

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1A
Chunk 211
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 is fee for service partnerships with biopharmaceutical companies and other organizations of all sizes that
have challenges analyzing data throughout the drug development process. The Company provides the customer with an analysis of large complex
data sets using the Company’s proprietary AI/ML platform. This platform is aimed at predicting targets of interest, patterns, relationships,
anomalies, and molecular drivers of disease. The Company believes that there will be additional on-going work requested from partners;
therefore, the service model utilizes a master services agreement with work or task orders issued for discrete analysis performed at
the discovery, preclinical, or clinical stages of drug development. The Company will receive fees in cash, equity or other consideration
and, in some instances, the potential for rights to new intellectual property generated from the analysis. Once data analysis and the
analysis report are complete, the Company delivers the analysis set to the customer and recognizes revenue at that point in time.

Financial
Instruments

The
carrying value of short-term instruments, including cash and cash equivalents, accounts payable and accrued expenses approximate fair
value due to the relatively short period to maturity for these instruments. Fair value is defined as the exchange price that would be
received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize
the use of observable inputs and minimize the use of unobservable inputs. The Company utilizes a three-level valuation hierarchy for
disclosures of fair value measurements, defined as follows:

Level
1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level
2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are
observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments.

Level
3 - inputs to the valuation methodology are unobservable and significant to the fair value. The Company does not have any assets or liabilities
that are required to be measured and recorded at fair value on a recurring basis.

Cash
and Cash Equivalents and Concentration of Credit Risk

The
Company considers cash to consist of cash on hand and temporary investments having an original maturity of 90 days or less that are readily
convertible into cash. 

The
Company’s financial instruments that are exposed to a concentration of credit risk are cash and