Bullfrog AI (US:BFRG)2025-11-14 21:16Revenue Recognition - The company recognized revenue of approximately $65,000 from its first commercial service contract in Q3 2023 and $83,000 and $117,000 in revenue for the three and nine months ended September 30, 2025, respectively, from a collaboration agreement with Eleison Pharmaceuticals[109]. - The company recognized a cost of revenue of approximately $68,000 for the three months ended September 30, 2025, related to its collaboration with Eleison[113]. - Collaboration revenue recognized for the nine months ended September 30, 2025 was approximately $117,000, with a cost of revenue of approximately $95,000, entirely related to the collaboration with Eleison[118]. Financial Position - As of September 30, 2025, the company has a cash balance of approximately $2.1 million, which is insufficient to fund planned operations for at least one year beyond the filing date, raising substantial doubt about its ability to continue as a going concern[104]. - As of September 30, 2025, the company's cash and cash equivalents were insufficient to fund planned operations for at least one year, raising substantial doubt about its ability to continue as a going concern[127]. - The company has an accumulated deficit of approximately $21.8 million as of September 30, 2025, funded primarily through the sale of common stock, warrants, and debt[123]. Operating Performance - The company has incurred negative cash flows from operations and has operated at a net loss since inception, requiring additional capital to execute its strategy[105]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $(4,337,270), slightly improved from $(4,338,214) in the same period of 2024[129]. - Total operating expenses for the three months ended September 30, 2025 decreased to $1,585,053 from $1,819,941 in the same period of 2024, a reduction of $234,888[114]. Research and Development - Research and development costs are expected to become significant as the company conducts preclinical research and development activities for its licensed drug development programs[111]. - Research and development expenses for the three months ended September 30, 2025 decreased to $345,992 from $566,584 in the same period of 2024, a reduction of $220,592[114]. Capital and Financing - The company plans to secure additional capital through revenues from licensing agreements and collaborative arrangements, as well as potential equity or debt transactions[105]. - The company completed its IPO in February 2023, receiving net proceeds of approximately $5.7 million from a public offering in February 2024 and $2.7 million from a registered direct offering in October 2024[104]. - The company entered into a purchase agreement with Lincoln Park for up to $10 million of common stock, with no shares sold under this facility during the nine months ended September 30, 2025[126]. - Net cash provided by financing activities for the nine months ended September 30, 2025 decreased to $996,999 from $5,952,472 in the same period of 2024, a decrease of $4,955,473[132]. Licensing and Collaborations - The company entered into a new license agreement with JHU-APL in July 2022, entitling JHU-APL to 8% of net sales for services provided to other parties and 3% for internally developed drug projects[97]. - The company has signed exclusive worldwide license agreements for cancer drugs targeting glioblastoma and hepatocellular carcinoma, enhancing its drug development portfolio[101]. Interest Income - Interest income for the nine months ended September 30, 2025 was approximately $83,000, down from approximately $205,000 in the same period of 2024, primarily due to a decrease in average cash balance[122]. General and Administrative Expenses - General and administrative expenses for the three months ended September 30, 2025 decreased to $1,239,061 from $1,253,357 in the same period of 2024, a reduction of $14,296[116].