Company: BIVIW
Filing Date: 2025-08-08
Form Type: 424B5
Source: 0001520138-25-000247
Chunk: 160

Company: BIOVIE INC.
Filing Date: 2025-08-08
Form: 424B5
Chunk 160
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 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 the commencement date in determining the present value of lease payments. The Company does not include
options to extend or terminate the lease term in its calculation unless it is reasonably certain that the Company will exercise any such
options. Rent expense is recognized under the operating leases on a straight-line basis. The Company does not recognize right-of-use assets
or lease liabilities for short-term leases, which have a lease term of 12 months or less at inception, and instead will recognize lease