Company: BIVIW
Filing Date: 2025-07-11
Form Type: S-1/A
Source: 0001520138-25-000205
Chunk: 177

Company: BIOVIE INC.
Filing Date: 2025-07-11
Form: S-1/A
Chunk 177
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 2023, respectively; and accordingly, was recorded in the accompanying statements of operations
and comprehensive loss. The assumptions used in the Black Scholes model to value the derivative liabilities at June 30, 2024 included
the closing stock price of $4.00 per share; for the Avenue Warrants, the exercise price of $58.20, remaining term 2.4 year, risk free
rate of 4.6% and volatility of 82.0%; and for the Conversion Option, the conversion price of $69.80; remaining term of 5 months, risk
free rate of 5.38% and volatility of 91.0%.

Derivative liability – Avenue Warrants

The Avenue Warrants were not considered to be indexed
to the Company’s own stock, and accordingly, were recorded as a derivative liability at fair value in the accompanying balance sheets
at June 30, 2024 and 2023.

The Black Scholes model was used to calculate the
fair value of the warrant derivative to bifurcate the warrant derivative amount from the Avenue Loan amount funded. The Avenue Warrants
are recorded at their fair values at the date of issuance and remeasured at each subsequent reporting period end date.

F-17

| 8. | Fair Value Measurements (continued) |

Embedded derivative liability – Conversion Option

The Conversion Option is accounted for as an embedded
derivative liability and required bifurcation from the Loan amount. The Black Scholes model was used to calculate the fair value of the
Conversion Option to bifurcate it from the Loan.

Financial assets

As of June 30, 2024, investments in U.S. Treasury Bills were valued through
use of quoted prices and are classified as Level 1. The following table presents information about our assets that are measured at fair
value on a recurring basis using the above input categories.

| Measured at fair value on a recurring basis             |     | Fair Value Measurements at 
 June 30, 2024              |            |     |         |   |     |         |   |     |       |            |
|:--------------------------------------------------------|:----|:---------------------------|-----------:|:----|:--------|:--|:----|:--------|:--|:----|:------|-----------:|
|                                                         |     | Level 1                    |            |     | Level 2 |   |     | Level 3 |   |     | Total |