Company: BIVIW
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001520138-25-000343
Chunk: 12

Company: BIOVIE INC.
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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balance sheet at June 30, 2025, was derived from audited annual financial statements but does not contain all the footnote disclosures
from the annual financial statements. These unaudited interim condensed financial statements should be read in conjunction with the Company’s
audited financial statements for the fiscal years ended June 30, 2025 and 2024 in our Annual Report on Form 10-K filed with the SEC on
August 15, 2025 (the “2025 Form 10-K”). A summary of significant accounting policies can also be found in those audited financial
statements in the 2025 Form 10-K.

Reverse stock split

The Company effected a 1:10 reverse stock split of the issued and outstanding
shares of its Common Stock on July 7, 2025 which was approved by the board of directors prior to shareholders’ approval at the special
meeting on June 23, 2025. All historical share and earnings per share amounts presented have been retroactively adjusted to reflect the
reverse stock split. 

Cash and cash equivalents 

Cash and cash equivalents consisted of cash deposits
and money market funds held at a bank and funds held in a brokerage account which included a U.S. treasury money market fund and U.S.
Treasury Bills with original maturities of three months or less.

    10

Concentration of Credit Risk in the Financial
Service Industry

As of September 30, 2025, the Company had cash
deposited in a certain financial institution in excess of federally insured levels. The Company regularly monitors the financial stability
of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However,
if liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific
regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material
adverse effect on its business, financial condition and results of operations.

Fair value measurement of assets and liabilities

We determine the fair values of our financial
instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use
of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction
to sell the asset or transfer the