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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industry specific requirements, and expands disclosure requirements. Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The Company is focused on the RELIVE Trial in the United States and therefore has not focused on commercialization of Revivent although the Company has obtained approval to sell the System in Europe. Under ASC 730, any revenue realized from Revivent during the RELIVE Trial is recorded as an offset to research and development expense. Research and development – Costs to develop the Company’s products are expensed as incurred. These costs include salaries and other personnel related expenses, contractor fees, facility costs, supplies, depreciation of equipment, and other outside services associated with the design and development of new products prior to the establishment of their technological feasibility.

Income
taxes – The Company accounts for income taxes under the asset and liability method, which requires that deferred income taxes
be provided for temporary differences between the tax basis of the Company’s assets and liabilities and their financial statements,
reported amounts. In addition, deferred tax assets are recorded for the future benefit of utilizing net operating losses and research
and development credit carryforwards. A valuation allowance is provided against deferred tax assets unless it is more likely than not
that they will be realized.

evaluating the ability to recover its deferred income tax assets, the Company considers all available positive and negative evidence,
including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis.
In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their
net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely,
in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the
valuation allowance would be charged to earnings in the period when such determination is made. As of December 31, 2025 and 2024, the
Company has recorded a full valuation allowance on its net deferred tax assets.

BIOVENTRIX, INC.

Notes
to Consolidated Financial Statements

December
31, 2025 and 2024

Accounting
for uncertain tax positions requires the Company to use a two-step approach to recognize and measure uncertain tax positions. The first
step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely
than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second
step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company
classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of
cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.

Stock-based
compensation – The Company measures and recognizes stock-based compensation expense in the financial statements for all share-based
payment awards made to employees, directors, and non-employees based on estimated fair values on the date of grant based on using the
Black-Scholes option pricing model. Common stock issued for services are recorded based on the fair value of the consideration received
or the fair value of the equity instruments issued, whichever is more reliably measurable.

The
Company’s determination of fair value of share-based payment awards on the date of grant using the Black-Scholes option-pricing
model is affected by the Company’s estimated fair value of common stock as well as assumptions regarding a number of highly complex
and subjective variables. These variables include, but are not limited to:

Expected
Term – Expected term represents the period that the Company’s stock-based awards are expected to be outstanding and is
determined using the simplified method.

Expected
Volatility – Expected volatility is estimated by studying the volatility of comparable public companies for similar terms.

Expected
Dividend – The Black-Scholes valuation model calls for a single expected dividend yield as an input.

Risk-Free
Interest Rate – The risk-free interest rate is based on the U.S. Treasury zero-coupon issued in effect at the time of grant
for periods corresponding with the expected term of the option.

Stock-based
compensation expense for all share-based payment awards is based on the grant date calculated fair value. The Company recognizes these
compensation costs, net of an estimated forfeiture rate, and recognizes the compensation costs for only those shares expected to vest
on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years. The
Company estimated the forfeiture rate based on its historical experience for annual grant years where the majority of the vesting terms
have been satisfied.

The
Financial Accounting Standards Board (“FASB”) has issued accounting standards updates (“ASUs”) that are not yet
effective for the Company. The Company is currently evaluating the impact of these ASUs on its consolidated financial statements.

BIOVENTRIX,
INC

Notes
to Consolidated Financial Statements

December
31, 2025 and 2024

Expense
Disaggregation (ASU 2023-07, Income Statement—Reporting Comprehensive Income). This ASU requires enhanced disclosures about
significant expense categories, including the nature and amounts of expenses included in each relevant income statement line item. The
Company expects this guidance to result in expanded disclosures, particularly related to research and development expenses, including
clinical trial costs. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial position,
results of operations, or cash flows.

Income
Taxes (ASU 2023-09, Improvements to Income Tax Disclosures). This ASU enhances income tax disclosure requirements, including additional
disaggregation of income taxes paid and expanded information regarding the effective tax rate reconciliation. The Company expects this
ASU to impact disclosures only and does not expect a material impact on its consolidated financial statements.

The
Company does not expect the adoption of any other recently issued accounting standards to have a material impact on its consolidated
financial statements.

Note
3 – Fair value of derivative liability:

The
Company has identified an embedded derivative related to the maturity conversion feature of its secured convertible notes that is required
to be bifurcated and accounted for separately in accordance with ASC 815, Derivatives and Hedging. The derivative liability is measured
at fair value at each reporting date, with changes in fair value recognized in the consolidated statement of operations.

December 31, 2025, the fair value of the derivative liability was $1,349,735. The fair value was estimated using a probability-weighted
expected return model, which incorporates significant unobservable inputs, including probability of different events, timing of each
event, discount rate and value of the Company’s common stock. Accordingly, the derivative liability is classified within Level
3 of the fair value hierarchy under ASC 820.

The
primary valuation assumptions used were:

Maturity date 12/31/2027

Bond rate (CCC) 12.49	%

Volatility 94.0	%

Probability of Qualified Financing 25	%

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2025 and 2024

Timing of Qualified Financing 6/30/26

Probability of
Qualified IPO 50	%

Timing of Qualified IPO 6/30/26

Value of common stock, per 409A valuation $	0.80

The
following table presents the change in the fair value of the derivative liability during the years ended December 31:

Fair value at January 1 $	364,398 $	-

Initial recognition upon issuance 984,405 393,129

Loss (Gain) recognized in earnings 932 (28,731	)

Transfers in / out of Level 3 - -

Fair value at December 31, $	1,349,735 $	364,398

Changes
in the fair value of the derivative liability resulted in an unrealized gain of $4,794 and $28,731 for the years ended December 31, 2025
and 2024, respectively, which was recognized in other expense in the consolidated statement of operations.

Note
4 – Balance sheet components:

Prepaid
expenses and other current assets consist of the following:

December
31, 2025 December

Insurance $	101,357 $	102,657

Rent 18,287 -

Licenses 19,883 -

Research and development 60,153 -

Undeposited funds 50,000 -

Other 2,054 2,054

Property
and equipment, net consists of the following:

Leasehold improvements $	229,742 $	229,742

Accumulated
depreciation (128,053	) (82,858	)

Property
and equipment, net $	101,689 $	146,884

Depreciation
expense was $45,195 for the years ended December 31, 2025 and 2024.

Accrued
expenses and other current liabilities consist of the following:

Accrued payroll liabilities $	303,890 $	225,087

Accrued interest 1,475,669 352,105

Royalties 190,213 190,213

Legal 750,429 -

Other accrued expenses 59,196 16,945

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2025 and 2024

Note
5 – Convertible notes payable:

Series
A Secured Convertible Notes