Company: BFRG
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001493152-25-010367
Chunk: 359

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 1C
Chunk 359
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2021 are open tax years. Because of net operating losses
and research credit carryovers, substantially all the Company’s tax years remain open to examination.

     F-16 

Reconciliations
between the statutory federal income tax rate and the effective income tax rate of income tax expense for the years ended December 31,
2024 and 2023 are as follows:

 Effective Income Tax Rate of Income Tax Expense

    December 31,  
    December 31, 

    2024  
    2023 
  
    U.S. Federal statutory tax rate 
     21.0% 
     21.0%
  
    Stock-based compensation 
     (1.6) 
     (1.1)
  
    Other 
     (1.1) 
     (3.3)
  
    Change in valuation allowance 
     (18.3) 
     (16.6)

     -% 
     -%

 10. Material Agreements

JHU-APL
Technology License

In
February 2018, the Company entered into an exclusive, world-wide, royalty-bearing license from JHU-APL. The license covers three (3)
issued patents, one (1) new provisional patent application, non-patent rights to proprietary 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 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