Overview

Bullfrog AI Holdings is the parent company of Bullfrog AI and Bullfrog Management, which were founded in 2017 and 2021. The company focuses on using advanced AI/ML technology originally developed at Johns Hopkins to analyze complex data to advance medicine.

In February 2018, Bullfrog secured an exclusive license from Johns Hopkins, which was expanded in July 2022. Bullfrog’s objective is to utilize its AI/ML platform called bfLEAP with a precision medicine approach to help biopharmaceutical partners develop drugs faster and at lower cost.

Bullfrog aims to improve success rates at every stage of drug development. The company’s ultimate goal is to rescue late-stage failed drugs and further develop them or divest them. Bullfrog also considers earlier stage collaborations.

Recent Business Developments

Since its IPO in February 2023, Bullfrog has:

• Hired staff and initiated investor relations and marketing activities
• Started R&D activities and collaboration with J. Craig Venter Institute
• Completed a preclinical study for its mebendazole program
• Actively developed new IP to evolve its AI/ML platform
• Engaged a business development firm to seek a strategic partner for its mebendazole program
• Added staff to accelerate execution and develop processes for analytical services
• Launched initiatives to access large public and proprietary health data sources
• Transitioned accounting and reporting systems to enhance internal controls
• Used IPO proceeds to repay debts

In Q1 2024, Bullfrog raised net proceeds of $5.7 million from a secondary offering. As of March 31, 2024, the company had approximately $7 million in cash, which is expected to fund operations for about 12 months.

Business Strategy

Bullfrog’s strategy has two parts:

1. Generate revenue through partnerships with biopharmas using a fee/IP structure to reduce drug development risk and timelines
2. Acquire drug rights at various stages, use AI/ML to advance them, and monetize quickly within ~30 months

Critical Accounting Policies

No material changes to critical accounting policies and estimates compared to most recent 10-K filing.

Financial Operations

• Recognized first commercial revenue of $65,000 in Q3 2023
• R&D expenses primarily include costs related to licensed tech, external services, and personnel costs
• R&D costs expected to increase significantly as preclinical and clinical activities ramp up
• G&A expenses consist mainly of personnel, accounting, consulting, insurance, and legal fees
• G&A expenses expected to increase to support growth

Q1 2024 vs. Q1 2023 Results

	March 31, 2024	March 31, 2023	Net Change
R&D	$552,126	$369,933	$182,193
G&A	$1,413,592	$820,712	$592,880
Total Op Ex	$1,965,718	$1,190,645	$775,073

• R&D increased due to additional hires and expanded discovery efforts
• G&A increased due to added headcount and public company costs

Liquidity & Capital Resources

• Accumulated deficit of ~$11.7M as of March 31, 2024
• Operations funded through equity and debt financing
• IPO in February 2023 raised net proceeds of ~$8.4 million
• Q1 2024 secondary offering raised ~$5.7 million
• Cash balance of ~$7 million as of March 31, 2024, expected to fund ~12 months

Cash Flows

	Q1 2024	Q1 2023	Change
Operating	$(1,901,634)	$(2,361,336)	$459,702
Investing	-	-	-
Financing	$6,287,621	$7,723,187	$(1,435,566)
Net Change in Cash	$4,385,987	$5,361,851	$(975,864)

• Decreased cash used in operating due to paying down accrued expenses in 2023
• No investing activity
• Financing decreased due to IPO proceeds in 2023 vs. secondary offering in 2024

Outlook

Bullfrog has accumulated losses to date but has added staff, expanded capabilities, and raised capital to advance its pipeline. Near-term operating losses expected to continue as preclinical and clinical activities increase. Company will require additional financing to fully execute strategy. Revenue growth potential remains largely tied to success in gaining biopharma partners and progressing development programs.