Bullfrog AI (US:BFRG)2024-08-07 20:15Revenue Recognition - The company recognized revenue of $65,000 in Q3 2023 from its first commercial service contract, with no revenue generated during the six months ended June 30, 2024[70]. Research and Development Expenses - Research and development expenses for Q2 2024 increased to $513,699, up from $273,671 in Q2 2023, reflecting a rise of $240,028[74]. - For the six months ended June 30, 2024, research and development expenses totaled $1,065,825, up from $643,604 in the same period of 2023, an increase of $422,221[75]. - Research and development expenses for the six months ended June 30, 2024, increased due to higher personnel costs from hiring additional technical staff and engaging disease experts[78]. General and Administrative Expenses - General and administrative expenses for Q2 2024 decreased to $1,168,264 from $1,263,299 in Q2 2023, a reduction of $95,035[74]. - General and administrative expenses for the six months ended June 30, 2024 were $2,581,856, compared to $2,084,011 in the same period of 2023, an increase of $497,845[75]. - General and administrative expenses for the six months ended June 30, 2024, increased primarily due to higher personnel costs and associated equity compensation costs[78]. Total Operating Expenses - Total operating expenses for Q2 2024 were $1,681,963, an increase of $144,993 compared to $1,536,970 in Q2 2023[74]. - Total operating expenses for the six months ended June 30, 2024 reached $3,647,681, up from $2,727,615 in the same period of 2023, an increase of $920,066[75]. Cash and Capital Resources - The company has a cash balance of approximately $5.6 million as of June 30, 2024, following net proceeds of approximately $5.7 million from a secondary public offering[65]. - The company anticipates requiring additional capital to continue executing its strategy, with plans to raise funds through equity sales, debt transactions, and licensing agreements[67]. - Management believes the company's capital resources are sufficient to fund planned operations for approximately 9 months from the date of this filing[84]. Financing Activities - The company completed its IPO on February 16, 2023, raising approximately $8.4 million in gross proceeds by selling 1,297,318 units at $6.50 each[82]. - In the first quarter of 2024, the company generated approximately $5.7 million in net proceeds from an underwritten secondary offering of common stock and warrants[83]. - Net cash provided by financing activities for the six months ended June 30, 2024, decreased to $6,121,507 from $8,991,410 in the same period of 2023, a decrease of $2,869,903[86]. Cash Flow - Net cash used in operating activities for the six months ended June 30, 2024, decreased to $(3,132,149) from $(3,589,511) in the same period of 2023, a change of $457,362[85]. - The net increase in cash and cash equivalents for the six months ended June 30, 2024, was $2,989,358, down from $5,401,899 in the same period of 2023, a decrease of $2,412,541[85]. Interest Income and Expense - Interest expense decreased by $59,950 for the six months ended June 30, 2024, while interest income increased by $57,662 during the same period[79]. Accumulated Deficit - The company has an accumulated deficit of approximately $13,287,000 as of June 30, 2024, funded through the sale of common stock and debt[80].