SEC Filing Document

Company: BIOVENTRIX, INC.
Ticker: 
CIK: 1283259
Filing Type: S-1
Document Type: S-1
Date Filed: 2026-02-12
Accession Number: 0001493152-26-006407
Exchange: 
SIC Code: 3841
SIC Description: Surgical & Medical Instruments & Apparatus
URL: https://www.sec.gov/Archives/edgar/data/1283259/000149315226006407/forms-1.htm

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and related disclosures of commitments and contingencies, if any. We have identified certain accounting policies that are significant to the preparation of our financial statements. These accounting policies are important for an understanding of our financial condition and results of operations. Critical accounting policies are those that are most important to the portrayal of our financial condition and results of operations and require management’s difficult, subjective, or complex judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods. Certain accounting estimates are particularly sensitive because of their significance to financial statements and because of the possibility that future events affecting the estimate may differ significantly from management’s current judgments. We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our financial statements: Use of Estimates

The
preparation of consolidated and combined financial statements in conformity with U.S. GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at
the date of the consolidated and combined financial statements as well as the reported amounts of revenues and expenses during the reporting
period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical
experience, risk of loss, general economic conditions and trends and the assessment of the probable future outcome. Subjective and significant
estimates include, but are not limited to, the valuation of stock-based compensation, expense recognition and accruals associated with
third party providers supporting pre-clinical studies and other research and development, and income tax asset realization. Actual results
could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of changes, if any, are reflected
in the consolidated and combined statements of operations in the period that they are determined.

Collaborative
Arrangements

analyze our collaborative arrangements to assess whether such arrangements involve joint operating activities performed by parties
that are both active participants in the activities and exposed to significant risks and rewards, and therefore are within the scope
of FASB ASC Topic 808, Collaborative Arrangements (“ASC 808”). For collaborative arrangements that contain multiple
elements, we determine which units of account are deemed to be within the scope of ASC 808 and which units of account are more
reflective of a vendor-customer relationship, and therefore are within the scope of ASC 606. For units of account that are accounted
for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, either by analogy to appropriate accounting
literature or by applying a reasonable accounting policy election. For collaborative arrangements that are within the scope of ASC 808,
we evaluate the income statement classification for presentation of amounts due to or owed from other participants associated
with multiple units of account in a collaborative arrangement based on the nature of each activity. Payments or reimbursements that are
the result of a collaborative relationship instead of a customer relationship, such as co-development and co-commercialization activities,
are recorded as increases or decreases to Research and Development Expense or General and Administrative Expense, as appropriate. Milestone
payments are considered contingent liabilities and are recognized when we deem the milestone event to be probable.

Fair
Value Measurements

FASB
ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value,
and expands disclosures about fair value measurements. Fair value is to be determined based on the exchange price that would be received
for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants. In determining fair value, we used various valuation approaches. A fair
value hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes
the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that
market participants would use in pricing the asset or liability based on market data obtained from sources independent of us.

Unobservable
inputs reflect our assumption about the inputs that market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels, based on the
inputs, as follows:

●	Level
1 - Valuations based on quoted prices for identical instruments in active markets. Since valuations are based on quoted prices that
are readily and regularly available in an active market, valuation of these instruments does not entail a significant degree of judgment.

●	Level
2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for either similar
instruments in active markets, identical or similar instruments in markets that are not active, or model-derived valuations whose
inputs or significant value drivers are observable or can be corroborated by observable market data.

●	Level
3 - Valuations based on inputs that are unobservable. These valuations require significant judgment.

The
availability of valuation techniques and observable inputs can vary and is affected by a wide variety of factors, including the type
of asset or liability, whether the asset or liability is new and not yet established in the marketplace, and other characteristics particular
to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market,
the determination of fair value requires more judgment. Those estimated values do not necessarily represent the amounts that may be ultimately
realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuations,
those estimated values may be materially higher or lower than the values that would have been used had a ready market for the assets
or liabilities existed.

Research
and Development

Costs
and expenses that can be clearly identified as research and development are charged to expense as incurred in accordance with FASB ASC
730-10. Research and development costs are charged to expense as incurred and include the cost of wages, equipment, materials, and laboratory
fees paid in conducting scientific research on product candidates.

Stock-Based
Compensation

account for stock-based compensation to employees and non-employees in conformity with the provisions of FASB ASC Topic 718, Compensation
- Stock Based Compensation. We expense stock-based compensation to employees and non-employees over the requisite service
period based on the estimated grant-date fair value of the awards. We estimate the fair value of options granted using the Black
Scholes Merton model. We estimate when and if performance-based awards will be earned. If an award is not considered probable
of being earned, no amount of equity-based compensation expense is recognized. If the award is deemed probable of being earned, related
equity-based compensation expense is recorded. The fair value of an award ultimately expected to vest is recognized as an expense, net
of forfeitures, over the requisite service, which is generally the vesting period of the award. Options forfeitures are recorded as they
occur.

The
Black Scholes Merton model requires the input of certain subjective assumptions and the application of judgment in determining the fair
value of the awards. The most significant assumptions and judgments include the following:

●	Expected
volatility - The expected price volatility is based on the historical volatilities of peer group companies as we do not have
a sufficient trading history. Industry peers consist of several public companies in the bio-tech industry similar in size, stage
of life cycle, and capital structure. We also blend in historical data on the volatility of its own equity, increasing in
proportion as the period of historical data on our data becomes more representative.

●	Risk-free
interest rate - The risk-free rate was determined based on yields of U.S. Treasury Bonds of comparable terms.

●	Expected
dividend yield - We have not previously issued dividends and do not anticipate paying dividends in the foreseeable future.
Therefore, we used a dividend rate of zero based on our expectation of additional dividends.

●	Expected
term -The expected term of the options was estimated using the simplified method.

Shares
of common stock issued to third parties for services provided are valued at fair value of our common stock.

Recently
Adopted Accounting Pronouncements

The
Financial Accounting Standards Board (FASB) has issued several new accounting standards that are not yet effective for the Company, including
ASU 2023-06 (Disclosure Improvements), ASU 2023-07 (Income Statement—Reporting Comprehensive Income), ASU 2023-09 (Income
Taxes), ASU 2024-03 (Expense Disaggregation Disclosures), and ASU 2025-03 (VIE Business Combinations).

The Company has evaluated these new standards and does not
expect them to have a material impact on its financial position, results of operations, or cash flows upon adoption.

BUSINESS

Overview