SEC Filing Document

Company: BIOVENTRIX, INC.
Ticker: 
CIK: 1283259
Filing Type: DRS/A
Document Type: DRS/A
Date Filed: 2025-12-12
Accession Number: 0001493152-25-027406
Exchange: 
SIC Code: 3841
SIC Description: Surgical & Medical Instruments & Apparatus
URL: https://www.sec.gov/Archives/edgar/data/1283259/000149315225027406/filename1.htm

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the maturity date of the Unsecured Convertible Note. On March 21, 2023, the Company issued an additional Unsecured Convertible Note in the principal amount of $2,650,000. On March 29, 2023, the aggregate outstanding amount of $5,650,000 was converted into Series A Preferred Stock. See Note 9. 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 Secured Convertible Notes”) to accredited investors the repayment of which is secured by a grant of security interest in all of the Company’s assets. The Series A Secured Convertible 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 Convertible Notes that can be issued is $3,000,000. The conversion features of the Series A Secured Convertible 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.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

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 $1.00 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 of the Company 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 of the Company 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 at $1.00 per
share.

Series A-1 Secured Convertible Notes

From
October 2024 through December 31, 2024, the Company issued $1,710,000 in principal amount of its secured convertible promissory notes
(the “Series A-1 Secured Convertible Notes”) to accredited investors the repayment of which is secured by a grant of security
interest in all of the Company’s assets which security interest is pari passu to the security interest granted to the Secured Convertible
Note holders. The Series A-1 Secured Convertible 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 Secured Convertible Notes that can be issued is $7,500,000. See Note

The
conversion features of the Series A-1 Secured Convertible 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.

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 two times the outstanding principal balance; or (ii) the outstanding principal and unpaid accrued interest be converted into
Series A-1 Preferred Stock of the Company at the price of $3.33 per share.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

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-1 Preferred Stock of the Company at the price of $3.33 per share.

Qualified
IPO Conversion – In the event of a Qualified IPO the outstanding principal and unpaid accrued interest of each note will automatically
convert into shares of Series A-1 Preferred Stock of the Company at the price of $3.33 per share.

While
the Company anticipates an automatic conversion of the convertible notes due to achieving a Qualified Financing or Qualified IPO prior
to maturity, a derivative liability of $364,398 has been recorded as the fair value of the possibility the notes will fully mature. See
Note 4.

Note
8 – Obligation for intellectual property

The Company has licensed
certain patents to be used in the development of prospective future products. The licensing agreement with the Henry Ford Health System
provides for minimum payments, milestones, and royalties on future net sales on those potential future products. An agreement entered
into by the Company requires payments of $16,250 annually; reimbursement of patent prosecution costs and a payment of 1% of net sales
of the prospective product The agreement also requires due diligence and milestone payments of $200,000, $500,000, $125,000 and $250,000
upon receiving various approvals from the FDA. The Company has liability under the agreement of $140,213 and at December 31, 2024, and
2023. No royalty expense for this agreement was recorded during the years ended December 31, 2024, and 2023. Also, no royalty expense
is anticipated for sales of the Revivent System which is not covered by the licensed patents.

Note
9 – Related party transactions:

January 2023, a member of the Board of Directors converted a $500,000 note payable to an unsecured convertible note in the same amount.

February 2023, the Company issued 88,291 shares of Series B Preferred stock to a firm related to a member of the Board of Directors,
in payment of $1,324,200 of placement agent services that had been accrued at December 31, 2022. The Company determined that fees for
placement services were at a reasonable market rate. See Note 11.

February 2023, two members of the Board of Directors and entities they controlled received dividends of 485,600 shares of preferred stock.
See Note 11.

March 2023, two members of the Board of Directors and entities controlled by them purchased 702,500 Preferred Series A shares for $7,025,000.
See Note 11.

February 2024, two members of the Board of Directors and entities controlled by them purchased 650,000 Preferred Series A shares from
other investors. The directors subsequently sold 195,780 of these shares to the Company at cost to be used as incentive for certain purchasers
of Series A Secured Convertible Notes (the “Sweetener Shares”). The Company acquired an additional 30,120 Preferred Series
A shares from an investor for a total of 225,900 Sweetener Shares. See Note 11.

March 2024, a member of the Board of Directors and entities controlled by him purchased $1,830,000 Series A Secured Convertible Notes
from the Company. See Note 7.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023