Business Context and Reporting Period
Company: Bullfrog AI Holdings, Inc. (BFRG)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Quarter and nine months ended September 30, 2025
Business Overview: The Company focuses on advanced AI/ML-driven analysis of complex data sets in medicine and healthcare to advance drug development. Its core platform, bfLEAP™, is licensed from JHU-APL. The Company operates as a single segment and is currently in a pre-revenue commercialization phase with limited collaboration revenue.
Key Financial Metrics
| Metric | Q3 2025 (3 Months) | Q3 2024 (3 Months) | YTD 2025 (9 Months) | YTD 2024 (9 Months) |
|---|---|---|---|---|
| Total Revenue | $83,413 | $0 | $116,670 | $0 |
| Gross Profit | $15,370 | $0 | $21,892 | $0 |
| Net Loss | $(1,551,612) | $(1,763,464) | $(5,017,894) | $(5,278,904) |
| EPS (Basic & Diluted) | $(0.15) | $(0.22) | $(0.51) | $(0.67) |
| Cash & Equivalents (End of Period) | $1,990,712 (Sep 30, 2025) Restricted Cash: $105,000 |
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| Total Assets | ||||
| Total Liabilities | $758,701 (Sep 30, 2025) | |||
| Stockholders' Equity | $1,943,655 (Sep 30, 2025) |
Material Changes vs. Prior Period
- Revenue Generation: The Company recognized $83,413 in revenue for Q3 2025, compared to $0 in Q3 2024. This revenue stems entirely from a collaboration agreement with Eleison Pharmaceuticals, Inc., for which all deliverables were completed in the nine months ended September 30, 2025.
- Operating Expenses: Total operating expenses decreased by approximately $235,000 in Q3 2025 compared to Q3 2024. This reduction was driven by lower personnel costs and reduced director and officer insurance premiums, partially offset by an increase in stock-based compensation.
- Liquidity Position: Cash and cash equivalents decreased from $5.44 million at December 31, 2024, to $1.99 million at September 30, 2025. Net cash used in operating activities for the nine months ended September 30, 2025, was $4.34 million, consistent with the prior year period.
- Financing Activities: The Company raised approximately $941,000 net from At-The-Market (ATM) sales and $182,000 from short-term insurance financing during the nine months ended September 30, 2025. In contrast, the prior year period included significant proceeds from a registered direct offering and warrant exercises.
Outlook, Risks, and Management Commentary
- Going Concern Warning: Management has raised substantial doubt about the Company's ability to continue as a going concern. As of September 30, 2025, cash balances are insufficient to fund planned operations for at least one year. The Company requires additional capital through equity sales, debt, or revenue generation.
- Nasdaq Compliance: On August 21, 2025, the Company received notice of non-compliance with Nasdaq Listing Rule 5550(b)(1) regarding minimum stockholders' equity ($2.5 million requirement). The Company currently holds $1.94 million in equity. Nasdaq granted an extension until February 17, 2026, to regain compliance.
- Capital Facilities:
- ATM Agreement: Entered into with BTIG, LLC in April 2025 for up to $20 million. Approximately $1.1 million was raised YTD 2025. Remaining capacity is limited by public float rules to approximately $2.0 million.
- Lincoln Park Facility: Entered into a purchase agreement in September 2025 for up to $10 million. No shares were sold under this facility during the period. A commitment fee of 147,682 shares was issued.
- Internal Controls: The Company disclosed material weaknesses in internal controls over financial reporting that remain unremediated as of September 30, 2025. Management is implementing improvements, including transitioning accounting processes to an external firm and enterprise platform.
- Strategic Partnerships: A new strategic collaboration with Sygnature Discovery was announced in June 2025 to market the Company's platform, though no revenue has been recognized from this agreement yet.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $1.99 million cash balance against the Company's burn rate and the timeline for securing additional financing.
- Nasdaq Delisting Risk: Monitor the Company's progress in meeting the $2.5 million stockholders' equity requirement by the February 17, 2026 deadline to avoid delisting.
- Revenue Sustainability: Assess whether the $116,670 in YTD revenue from the Eleison agreement represents a one-time event or the beginning of a recurring revenue stream.
- Internal Control Remediation: Review future filings for updates on the remediation of material weaknesses in financial reporting controls.
- Dilution Impact: Evaluate the potential dilution from the $10 million Lincoln Park facility and the remaining capacity under the ATM agreement.