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

Company: BullFrog AI Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 14
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July 2025, the FASB issued ASU No. 2025-05 which amends Topic 326. Specifically, the ASU provides a practical expedient whereby an entity
can assume that current conditions as of the balance sheet date will not change for the remaining life of the asset (e.g., the accounts
receivable). This guidance is effective for the Company’s fiscal year ending December 31, 2026 and can be adopted early. The Company
is in the process of evaluating the effects of this guidance on its condensed consolidated financial statements.

In
September 2025, the FASB issued ASU No. 2025-07 which, among other things, provides scope clarification for share-based noncash consideration
from a customer in a revenue contract. Specifically, the ASU clarifies that share-based payments from customers in exchange for the transfer
of goods or services should be accounted for as noncash consideration within the scope of ASC 606 as opposed to as a derivative pursuant
to ASC 815 or as an equity security pursuant to ASC 321. This guidance is effective for the Company’s fiscal year ending December
31, 2027 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