Company: BFRG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023496
Chunk: 54

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 54
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7 and can be adopted early. The Company is in the process of evaluating the effects of this guidance on its condensed consolidated
financial statements.

    9

The
Company does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if
adopted, would have a material effect on the accompanying financial statements.

3.Investments

The
Company’s sole investment is in the form of equity securities in a private entity. The Company entered into a strategic collaboration
agreement and received such equity securities as remuneration for services rendered. The investment is initially valued at approximately
$58,000 (see Note 4). The Company has elected the measurement alternative and, accordingly, it is carried at its estimated fair value
calculated as its cost less any impairment charges until such time as there is evidence of an orderly transaction (see Note 2). As of
September 30, 2025, no fair value adjustments have been recognized, nor have there been any impairment charges. This investment is considered
a financial asset that is measured at fair value on a non-recurring basis.

4.Revenue

The
Company had an agreement with a single customer, Eleison Pharmaceuticals, Inc. (“Eleison”), for contract services. The collaboration
agreement, which was entered into in February 2025 and designed to enhance clinical trial efficiency, extract actionable insights from
historical and ongoing data and improve strategic planning for Eleison’s oncology pipeline, was deemed to have multiple deliverables
with revenue to be recognized at the time each deliverable was completed. In exchange for the services provided, the Company is entitled
to consideration in the form of cash or equity securities of the customer or any combination at the customer’s sole discretion.
The Company received the initial payment in the second quarter of 2025, representing 50% of the total consideration, in the form of equity
securities of the customer (see Note 3) valued at approximately $58,000, and the remaining consideration, also valued at approximately
$58,000, was due upon completion of the final deliverable. The Company allocated the total proceeds to each of the separate deliverables
on a relative basis based on the estimated stand-alone selling price of each deliverable. All deliverables were completed in the nine
months ended September 30, 2025 and, consequently, the Company recognized approximately $117,000 of revenue at the point in time that
each deliverable was completed.

In