Company: BFRG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023496
Chunk: 75

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 75
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 to Sygnature’s
global biopharma client base; however, we have not yet recognized any revenue under this collaboration. We are in discussions with other
potential partners, although there can be no assurance of entering into other business relationships in 2025 or beyond.

20

Cost
of Revenue

Cost
of revenue consists primarily of the allocation of personnel costs (e.g. payroll, benefits, and consulting fees) of our employees and
third-party consultants directly attributable to the satisfaction of our performance obligations under our revenue arrangements.

Research
and Development Costs and Expenses

Research
and development costs and expenses include development activities related to our licensed drug candidates and our discovery efforts and
collaborations. In addition to fees paid to external service providers, we are also allocating costs for internal personnel working on
these activities as well as their efforts to develop our product and service offerings using bfLEAP™. We anticipate our research
and development costs could become significant over time as we execute on our business plan and begin conducting preclinical research
and development activities directed at securing development partners and filing an investigational new drug (IND) application for our
licensed drug development programs described in this filing, as well as under strategic partnerships and for other drug development programs
we may acquire. Research and development expenses are recorded in operating expenses in the period in which they are incurred. Estimates
will be used in determining the expense liability of certain costs where services have been performed but not yet invoiced. We will monitor
levels of performance under each significant contract for external services through communications with the service providers to reflect
the actual amount expended.

General
and Administrative Expenses 

General
and administrative expenses include personnel costs and costs associated with being a public company such as directors and officers insurance,
audit and tax provider fees, legal fees, and exchange listing costs. Additionally, our general and administrative costs include expenses
for our business development, investor relations and marketing efforts. We anticipate our general and administrative expenses increasing
in the future to support our service offerings and clinical and pre-clinical research and development activities associated with strategic
partnering and collaborations. 

Results
of Operations – Comparison of Three Months Ended September 30, 2025 and 2024

Collaboration
Revenue and Cost of Collaboration Revenue

We
recognized revenue and cost of revenue of approximately $83,000 and $68,000, respectively, for the three months ended September 30, 2025,
entirely related to our lone collaboration agreement with Eleison.