Business Context and Reporting Period
Company: Bullfrog AI Holdings, Inc. (BFRG)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
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 utilized for external partnerships and selective internal development to de-risk therapeutic development.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
|---|---|---|
| Total Revenue | $215,385 | $33,257 |
| Gross Profit | $106,899 | $6,522 |
| Net Loss | $(2,964,691) | $(3,466,282) |
| Net Loss Per Share (Basic & Diluted) | $(0.19) | $(0.36) |
| Cash and Cash Equivalents (End of Period) | $6,918,141 | $2,183,705 |
| Net Cash Used in Operating Activities | $(3,207,328) | $(3,230,098) |
| Net Cash Provided by Financing Activities | $7,941,764 | $372,750 |
| Total Stockholders' Equity | $6,987,262 | $2,136,329 |
Debt & Liquidity: As of June 30, 2026, the Company had $90,138 in short-term insurance financing. Total current liabilities were $706,590. The Company maintains an At-The-Market (ATM) Sales Agreement with BTIG and an Equity Line of Credit (ELOC) with Lincoln Park Capital Fund.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased significantly to $215,385 from $33,257 in the prior year period, driven by the completion of the first deliverable under a new feasibility agreement with a global pharmaceutical company for major depressive disorder (MDD) targets.
- Operating Expenses: Total operating expenses decreased to $3,140,587 from $3,532,815. Research and Development (R&D) expenses declined by $282,282 due to the absence of severance obligations and target discovery costs in the current period. General and Administrative (G&A) expenses decreased by $109,946, primarily due to reduced personnel costs and lower non-cash stock-based compensation.
- Capital Raising: Financing activities surged, with net cash provided by financing increasing to $7.94 million from $0.37 million. This was driven by approximately $2.0 million in net proceeds from the ATM Agreement and $5.8 million from the ELOC Facility during the six months ended June 30, 2026.
- Cash Position: Cash and cash equivalents increased by approximately $4.7 million to $6.9 million, compared to a decrease of $2.9 million in the prior year period.
Guidance, Outlook, Risks, and Contingencies
Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern. As of June 30, 2026, cash and cash equivalents are not sufficient to fund planned operations for at least one year beyond the filing date. The Company anticipates securing additional capital through revenues, equity sales, or debt transactions.
Nasdaq Compliance:
- Stockholders' Equity: The Company regained compliance with the Nasdaq minimum stockholders' equity requirement ($2.5 million) on April 21, 2026, following equity sales. It is subject to a one-year mandatory panel monitor.
- Minimum Bid Price: The Company received a notice on February 10, 2026, that its stock price had fallen below the $1.00 minimum bid price requirement. It has a compliance period until August 10, 2026, and requested an extension on July 30, 2026. Failure to regain compliance may result in delisting. The Company has stockholder approval to effect a reverse stock split if necessary.
Outlook: The Company plans to continue leveraging its bfLEAP™ platform for strategic partnerships and drug asset enhancement. It intends to monitor its stock price and assess options to maintain Nasdaq listing compliance.
Investor Verification Checklist
- Liquidity Runway: Verify the sufficiency of the current $6.9 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 regaining compliance with the $1.00 minimum bid price requirement by the August 10, 2026 deadline (or any granted extension).
- Revenue Sustainability: Assess the likelihood of recurring revenue from the new feasibility agreement and the status of the Sygnature Discovery collaboration, which has not yet generated revenue.
- Dilution Impact: Review the remaining capacity under the ATM Agreement ($15.0 million) and ELOC Facility ($4.1 million) and the potential dilution from future equity issuances required to fund operations.
- License Obligations: Confirm the Company's ability to meet minimum annual royalty payments to JHU-APL ($300,000/year) and other license partners, which are accrued as liabilities.