Company: BFRG
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001641172-25-009946
Chunk: 14

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-05-13
Form: 10-Q
Item: Item 1
Chunk 14
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 libraries of
algorithms and other trade secrets, as well as modifications and improvements. In October 2021, the Company executed an amendment to
the original license for improvements and new advanced analytics capabilities. In consideration of the rights granted to the Company
under the 2018 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.

    12

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 “2022 License Agreement”). The new license provides additional intellectual property
rights including patents, copyrights, and know-how to be utilized under the Company’s bfLEAP™ analytical AI/ML platform.
This 2022 License Agreement supersedes the previous 2018 License Agreement. In consideration for entering into 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 decline to 25%
based on revenues. In addition, under the 2022 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. 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. The financial terms of the new license agreement replace the original terms
within the 2018 License Agreement and are not duplicative.

In
May 2023, the Company and JHU-APL entered into Amendment Number 1 of the 2022 License