Company: BIVIW
Filing Date: 2025-07-11
Form Type: S-1/A
Source: 0001520138-25-000205
Chunk: 165

Company: BIOVIE INC.
Filing Date: 2025-07-11
Form: S-1/A
Chunk 165
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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 liability occurs in the principal or most advantageous market for the asset or liability and establishes that the
fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset
or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant
to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value:

Level 1 - Inputs are unadjusted quoted prices in active
markets for identical assets or liabilities.

Level 2 - Inputs are quoted prices for similar assets
and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market
corroboration, for substantially the full term of the financial instrument.

Level 3 - Inputs are unobservable inputs based on
our assumptions.

The Company’s financial instruments include
cash, accounts payable, the carrying value of the operating lease liabilities and notes payable. The carrying amounts of cash and accounts
payable approximate their fair value, due to the short-term nature of these items. The carrying amounts of notes payable and operating
lease liabilities approximate their fair values since they bear interest at rates which approximate market rates for similar debt instruments.

Prepaid and other assets

Prepaid and other assets consist of prepayments of
certain expenses and a security deposit paid in connection with a lease agreement.

Leases

The Company determines whether an arrangement contains
a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current portion of operating
lease liabilities, and operating lease liabilities, net of current portion on our balance sheets. ROU assets represent the Company’s
right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from
the lease. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease
term at the commencement date. As the Company’s leases do not provide an implicit rate, an incremental borrowing rate is used based
on the information available at