Business Context and Reporting Period
Company: Bullfrog AI Holdings, Inc. (BFRG)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: March 31, 2026
Business Overview: The Company focuses on advanced artificial intelligence and machine learning (AI/ML) analysis of complex data sets in medicine and healthcare. Its core platform, bfLEAP™, is designed to de-risk drug development through precision medicine approaches, strategic partnerships, and internal target discovery. The Company operates as a non-accelerated filer, smaller reporting company, and emerging growth company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(1,593,161) | $(2,017,553) |
| Net Loss Per Share (Basic & Diluted) | $(0.12) | $(0.21) |
| Total Operating Expenses | $1,614,627 | $2,056,620 |
| Cash and Cash Equivalents (End of Period) | $5,080,463 | $3,801,928 (Total cash incl. restricted) |
| Net Cash Used in Operating Activities | $(1,694,088) | $(1,798,125) |
| Net Cash Provided by Financing Activities | $4,590,846 | $164,070 |
| Total Assets | $5,538,863 | $2,808,351 (Dec 31, 2025) |
| Total Liabilities | $652,072 | $672,022 (Dec 31, 2025) |
Note: The filing does not provide a clear value for Q1 2025 cash and cash equivalents on the balance sheet date, but the cash flow statement indicates a beginning balance of $5,435,983 for Q1 2025 and an ending balance of $3,801,928.
Material Changes vs. Prior Period
- Revenue: The Company reported $0 revenue for the three months ended March 31, 2026, consistent with the prior year period. Revenue recognition is tied to specific deliverables under collaboration agreements, none of which were completed in Q1 2026.
- Operating Expenses: Total operating expenses decreased by approximately $442,000 (21.5%) compared to Q1 2025.
- R&D Expenses: Decreased by $141,441, primarily due to the absence of severance obligations and specific target discovery efforts in the current quarter.
- G&A Expenses: Decreased by $300,552, driven by reduced personnel costs and lower non-cash stock-based compensation.
- Liquidity Position: Cash and cash equivalents increased significantly from approximately $2.2 million at the end of 2025 to $5.1 million at March 31, 2026. This increase was driven by net proceeds of approximately $4.5 million from financing activities, including sales under the At-The-Market (ATM) Agreement and an Equity Line of Credit (ELOC) facility.
- Stock Issuance: The Company issued 7,028,922 shares of common stock during the quarter, net of issuance costs, increasing total stockholders' equity.
Guidance, Outlook, Risks, and Unusual Items
Management Commentary and Outlook
Management expects current cash levels to fund operations for at least one year beyond the filing date, though this is subject to significant assumptions. The Company continues to pursue revenue through strategic partnerships and the commercialization of its AI/ML platform. A feasibility agreement was signed in March 2026 with a global pharmaceutical company for drug target discovery related to major depressive disorder (MDD), with potential milestone payments.
Risks and Contingencies
- Going Concern: The Company has a history of net losses and negative cash flows from operations. Management has raised substantial doubt about the Company's ability to continue as a going concern without additional financing or revenue generation.
- Nasdaq Compliance (Stockholders' Equity): The Company previously received notice of non-compliance with Nasdaq's minimum stockholders' equity requirement ($2.5 million). Following a hearing and subsequent stock sales, Nasdaq notified the Company on April 21, 2026, that it had regained compliance. The Company is now subject to a one-year mandatory panel monitor.
- Nasdaq Compliance (Bid Price): On February 10, 2026, the Company received notice that its stock price had fallen below the $1.00 minimum bid price requirement. The Company has a 180-day compliance period (until August 10, 2026) to regain compliance, potentially through a reverse stock split (authorized by shareholders in October 2025).
- Financing Dependence: Future operations depend on the availability of capital through the ATM Agreement, ELOC Facility, or other equity/debt transactions. There is no assurance that such funding will be available on acceptable terms.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $5.1 million cash balance against projected burn rates, given the "substantial doubt" regarding going concern status.
- Revenue Recognition: Monitor the status of the March 2026 feasibility agreement and other collaborations to determine when, if ever, revenue will be recognized.
- Nasdaq Listing Status: Track the Company's progress in maintaining the $1.00 minimum bid price to avoid delisting, noting the potential for a reverse stock split.
- Dilution Risk: Assess the impact of ongoing equity sales under the ATM and ELOC facilities on existing shareholders, noting the significant share issuance in Q1 2026.
- License Obligations: Review the accrued minimum annual royalty payments owed to JHU-APL ($300,000/year) and other university partners, which must be paid regardless of revenue generation.