Bullfrog AI (BFRG) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements The company reported no revenue, an increased net loss, and a significant cash decrease to $3.8 million, raising substantial doubt about its ability to continue as a going concern Condensed Consolidated Balance Sheets Total assets decreased to $4.09 million due to reduced cash, while liabilities increased and stockholders' equity declined to $3.25 million reflecting the net loss Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $3,801,928 | $5,435,983 | | Total current assets | $4,082,054 | $5,547,580 | | Total assets | $4,085,872 | $5,551,830 | | Liabilities & Equity | | | | Total current liabilities | $839,397 | $588,090 | | Total liabilities | $839,397 | $588,090 | | Total stockholders' equity | $3,246,475 | $4,963,740 | | Total liabilities and stockholders' equity | $4,085,872 | $5,551,830 | Condensed Consolidated Statements of Operations The company reported no revenue and a net loss of $2.02 million for Q1 2025, an increase from Q1 2024, primarily due to higher operating expenses Statement of Operations Summary (Unaudited, Three Months Ended March 31) | Financial Metric | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | $ - | $ - | | Research and development | $576,260 | $552,126 | | General and administrative | $1,480,360 | $1,413,592 | | Total operating expenses | $2,056,620 | $1,965,718 | | Loss from operations | ($2,056,620) | ($1,965,718) | | Net loss | ($2,017,553) | ($1,903,794) | | Net loss per share (basic and diluted) | ($0.21) | ($0.26) | Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity decreased from $4.96 million to $3.25 million, primarily due to the $2.02 million net loss, partially offset by stock-based compensation - The accumulated deficit increased from $(16.8) million at year-end 2024 to $(18.8) million at the end of Q1 2025, reflecting the ongoing net losses[21] Condensed Consolidated Statements of Cash Flows Net cash used in operations was $1.80 million, resulting in a $1.63 million cash decrease, contrasting with a $4.39 million increase in Q1 2024 from financing Cash Flow Summary (Unaudited, Three Months Ended March 31) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,798,125) | ($1,901,634) | | Net cash used in investing activities | $ - | $ - | | Net cash provided by financing activities | $164,070 | $6,287,621 | | Net (decrease) increase in cash | ($1,634,055) | $4,385,987 | | Cash at end of period | $3,801,928 | $7,010,717 | Notes to Condensed Consolidated Financial Statements Notes detail the bfLEAP™ AI/ML platform, a 'Going Concern' warning due to insufficient cash, material license agreements, and a subsequent $20 million ATM sales agreement - The company's business model is to use its AI/ML platform, bfLEAP™, to analyze complex medical data, enabling drug asset development through partnerships and internal projects[27][29] - There is substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2025, its cash of approximately $3.8 million is not sufficient to fund planned operations for at least one year[32] - In April 2025, the company entered into an At-The-Market (ATM) Sales Agreement with BTIG, LLC, to sell up to $20 million of its common stock from time to time[74] - The company has a key license agreement with JHU-APL for its bfLEAP™ platform, which requires minimum annual royalty payments of $300,000 for 2024 and beyond, plus additional payments for improvements[64][65] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the early-stage AI/ML drug development business, reiterates the 'going concern' issue due to insufficient cash, and outlines increased operating expenses and future revenue strategies - The company's strategy is twofold: 1) generate near-term revenue through fee-for-service partnerships with biopharma companies, and 2) acquire and advance drug assets using its AI/ML platform for monetization within approximately 30 months[88][89] Operating Expense Comparison (Three Months Ended March 31) | Expense Category | 2025 | 2024 | Net Change | | :--- | :--- | :--- | :--- | | Research and development | $576,260 | $552,126 | $24,134 | | General and administrative | $1,480,360 | $1,413,592 | $66,768 | | Total operating expenses | $2,056,620 | $1,965,718 | $90,902 | - The increase in R&D expenses was due to higher licensing costs and expanded target discovery efforts[95] - The increase in G&A expenses was due to increased personnel costs[96] - Management confirms that its cash position of $3.8 million as of March 31, 2025, is not sufficient to fund operations for at least a year, raising substantial doubt about its ability to continue as a going concern[86][100] Item 3. Quantitative and Qualitative Disclosures About Market Risk As a smaller reporting company, Bullfrog AI Holdings, Inc. is not required to provide this disclosure - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[106] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were ineffective due to unremediated material weaknesses, with ongoing efforts to implement improvements - The CEO and CFO concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to ongoing material weaknesses in internal control over financial reporting[107] - The company has identified material weaknesses related to not properly documenting, implementing, or operating an effective system of internal controls[108] - Remediation efforts are underway, including transitioning to an external accounting firm, implementing a new accounting platform, hiring a Corporate Controller, and engaging a third-party specialist to assist with evaluation and remediation[109][111] PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is not currently a party to any legal proceedings considered material to its financial condition or operations - The company is not currently a party to any material legal proceedings[112] Item 1A. Risk Factors As a smaller reporting company, Bullfrog AI Holdings, Inc. is not required to provide this information - The company is a smaller reporting company and is not required to provide risk factor disclosures in its Form 10-Q[113] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the three months ended March 31, 2025 - There were no unregistered sales of equity securities in the first quarter of 2025[114] Item 3. Defaults Upon Senior Securities The company reported no defaults upon senior securities - None[115] Item 4. Mine Safety Disclosures This item is not applicable to the company - Not applicable[116] Item 5. Other Information No directors or executive officers adopted, modified, or terminated a Rule 10b5-1 trading plan, though CEO Vininder Singh sold 50,000 shares under an existing plan - CEO Vininder Singh has a 10b5-1 sales plan in effect until August 31, 2025, for the sale of up to 1,000,000 shares[117] - During Q1 2025, 50,000 shares were sold under this plan[117] Item 6. Exhibits Exhibits filed include CEO and CFO certifications and Inline XBRL documents - Exhibits filed include certifications from the CEO and CFO, as well as Inline XBRL data files[118]