SEC Filing Document

Company: BIOVENTRIX, INC.
Ticker: 
CIK: 1283259
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2025-10-06
Accession Number: 0001493152-25-016953
Exchange: 
SIC Code: 3841
SIC Description: Surgical & Medical Instruments & Apparatus
URL: https://www.sec.gov/Archives/edgar/data/1283259/000149315225016953/filename1.htm

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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 several new accounting standards that are not yet effective for the Company, including
ASU 2023-06 (Disclosure Improvements), ASU 2023-09 (Income Taxes), ASU 2024-03 (Expense Disaggregation Disclosures), and ASU 2025-03
(VIE Business Combinations).

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

(unaudited)

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.

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.

June 30, 2025, the fair value of the derivative liability was $532,191. The fair value was estimated using a probability-weighted expected
return model, which incorporates significant unobservable inputs, including probability and timing of different events, 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
following table presents the change in the fair value of the derivative liability during the six months ended June 30, 2025:

Fair value at January 1, 2025 $	364,398

Initial recognition upon issuance 185,582

(Gains) / losses recognized in earnings (17,789	)

Transfers in / out of Level 3 -

Fair value at June 30, 2025 $	532,191

Changes
in the fair value of the derivative liability resulted in an unrealized gain of $17,789 for the six months ended June 30, 2025, which
was recognized in other expense in the consolidated statement of operations.

Note
4 – Balance sheet components

Inventories
consist of the following:

June
30, December

Raw
materials $	101,965 $	-

Finished
goods - 295,024

Reserve
for obsolescence - (295,024	)

Prepaid
expenses consist of the following:

June 30,
2025 December 31,

Insurance $	100,242 $	102,657

Rent 19,255 -

Licenses 25,362 -

Deposits 100,000 -

Other 95,015 2,054

Property
and equipment consist of the following:

June
30, December

Leasehold
improvements $	229,742 $	229,742

Accumulated
depreciation (105,456	) (82,858	)

Depreciation
expense of $22,599 was recorded for the three months ended June 30, 2025 and 2024.

Accrued
liabilities consist of the following:

June
30, December

Accrued
payroll liabilities $	246,596 $	225,087

Accrued
interest 785,636 352,105

Royalties 190,213 190,213

Other
accrued expenses 43,179 16,945

Note
5 – Convertible notes payable

Series A Secured Convertible
Notes

From March 2024 through August 2024, the Company issued $3,000,000 in principal amount of its secured convertible promissory
notes (the “Series A Notes”) to accredited investors the repayment of which is secured by a grant of security interest in
all the Company’s assets. The Series A Notes accrue interest at the annual rate of 15% compounded quarterly and have a maturity
date of December 31, 2027. The aggregate limit of the Series A Notes that can be issued is $3,000,000.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

(unaudited)

A member of the Board of
Directors and entities controlled by him purchased a total of $1,830,000 of the Series A Notes from
the Company. See Note 5.

The
conversion features of the Series A Notes are as follows:

Automatic
Conversion – The outstanding principal and unpaid accrued interest of each note shall be automatically converted into either
(i) such equity securities sold in the Qualified Financing (equity financing of at least $20 million) a conversion price equal to the
price paid per share for the equity securities paid by the investors in the Qualified Financing multiplied by 0.75, or (ii) Series A
Preferred Stock of the Company at the price of $1.00 per share.

Non-Qualified
Financing Conversion – The outstanding principal and unpaid accrued interest of each note may, at the sole election of the
noteholder, be converted into either (i) such equity securities sold in the Non-Qualified Financing (equity financing of at least
$10 million) at a conversion price equal to the price paid per share for the equity securities paid by the investors in the
Non-Qualified Financing multiplied by 0.75, or (ii) Series A Preferred Stock of the Company at the price of $1.0 per
share.

Maturity
Conversion – If the closing of a Qualified Financing or a Non-Qualified has not occurred on or before the Maturity Date, then
the holder of each note shall elect either: (i) the Company pay the holder an amount equal to the sum of all accrued and unpaid interest
due plus (2) two times (2x) the outstanding principal balance; or (ii) the outstanding principal and unpaid accrued interest be converted
into Series A Preferred Stock at the price of $1.00 per share.

Corporate
Transaction Conversion – In the event of a Corporate Transaction the holder of each note may elect either: (i) the sum of all
accrued and unpaid interest due plus (2) two times (2x) the outstanding principal balance; or (ii) the outstanding principal and unpaid
accrued interest will convert, effective immediately prior to, but contingent upon, the consummation of such Corporate Transaction, into
Series A Preferred Stock at the price of $1.00 per share.

Qualified
IPO Conversion – In the event of a sale of shares of Common Stock of the Company in a Qualified IPO (at least $7,500,000 of gross
proceeds), each note shall automatically convert into shares of Series A Preferred Stock of the Company.

Series A-1 Secured Convertible
Notes

From October 2024 through December 2024, the Company
issued $1,710,000 in principal amount of its secured convertible promissory notes (the “Series A-1 Notes”) to accredited
investors. The repayment of Series A-1 Notes is secured by a grant of security interest in all the Company’s assets
which security interest is pari passu to the security interest granted to the note holders. The Series A-1 Notes accrue interest at
the annual rate of 15% compounded quarterly and have a maturity date of December 31, 2027. The aggregate limit of the Series A-1 Notes
that can be issued is $7,500,000. See Note 14.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

(unaudited)

The
conversion features of the Series A-1 Notes are as follows:

Automatic
Conversion – The outstanding principal and unpaid accrued interest of each note shall be automatically converted into either
(i) such equity securities sold in the Qualified Financing (equity financing of at least $20 million) a conversion price equal to the
price paid per share for the equity securities paid by the investors in the Qualified Financing multiplied by 0.75, or (ii) Series A-1
Preferred Stock of the Company at the price of $3.33 per share.

Non-Qualified
Financing Conversion – The outstanding principal and unpaid accrued interest of each note may, at the sole election of the
noteholder, be converted into either (i) such equity securities sold in the Non-Qualified Financing (equity financing of at least $10
million) at a conversion price equal to the price paid per share for the equity securities paid by the investors in the Non-Qualified
Financing multiplied by 0.75, or (ii) Series A-1 Preferred Stock of the Company at the price of $3.33 per share.