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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of the material U.S. federal income tax considerations related to awards and certain transactions under the 2024 Plan and the 2025 Plan, based upon the current provisions of the Code and regulations promulgated thereunder. This summary deals with the general federal income tax principles that apply and is provided only for general information. It does not describe all federal tax consequences under the 2024 Plan and the 2025 Plan, nor does it describe state, local, or foreign income tax consequences or federal employment tax consequences. The rules governing the tax treatment of such awards are quite technical, so the following discussion of tax consequences is necessarily general in nature and is not complete. In addition, statutory provisions are subject to change, as are their interpretations, and their application may vary in individual circumstances. This summary is not intended as tax advice to participants, who should consult their own tax advisors.

Neither the 2024 Plan nor
the 2025 Plan is qualified under the provisions of Section 401(a) of the Code, and neither is subject to any of the provisions of the
Employee Retirement Income Security Act of 1974, as amended. Our ability to realize the benefit of any tax deductions described below
depends on our generation of taxable income as well as the requirement of reasonableness and the satisfaction of our tax reporting obligations.

Incentive Stock Options.
No taxable income is generally realized by the optionee upon the grant or exercise of an incentive stock option. If Shares issued to
an optionee pursuant to the exercise of an incentive stock option are sold or transferred after two years from the date of grant and
after one year from the date of exercise, then generally (i) upon sale of such Shares, any amount realized in excess of the option exercise
price (the amount paid for the shares) will be taxed to the optionee as a long-term capital gain, and any loss sustained will be a long-term
capital loss, and (ii) neither we nor our subsidiaries will be entitled to any deduction for federal income tax purposes; provided
that such incentive stock option otherwise meets all of the technical requirements of an incentive stock option. The exercise of an incentive
stock option will give rise to an item of tax preference that may result in alternative minimum tax liability for the optionee.

the Shares acquired upon the exercise of an incentive stock option are disposed of prior to the expiration of the two-year and one-year
holding periods described above (a “disqualifying disposition”), generally (i) the optionee will realize ordinary income
in the year of disposition in an amount equal to the excess (if any) of the fair market value of the Shares at exercise (or, if less,
the amount realized on a sale of such Shares) over the option exercise price thereof, and (ii) the Company or its subsidiaries will be
entitled to deduct such amount. Special rules will apply where all or a portion of the exercise price of the incentive stock option is
paid by tendering Shares.

an incentive stock option is exercised at a time when it no longer qualifies for the tax treatment described above, the option is treated
as a nonqualified option. Generally, an incentive stock option will not be eligible for the tax treatment described above if it is exercised
more than three months following termination of employment (or one year in the case of termination of employment by reason of disability).
In the case of termination of employment by reason of death, the three-month rule does not apply.

Nonqualified
Options. No income is generally realized by the optionee at the time a nonqualified option is granted. Generally, (i) at exercise,
ordinary income is realized by the optionee in an amount equal to the difference between the option exercise price and the fair market
value of the Shares issued on the date of exercise, and the Company or its subsidiaries receive a tax deduction for the same amount,
and (ii) at disposition, appreciation or depreciation after the date of exercise is treated as either short-term or long-term capital
gain or loss depending on how long the Shares have been held. Special rules will apply where all or a portion of the exercise price of
the nonqualified option is paid by tendering Shares. Upon exercise, the optionee will also be subject to Social Security taxes on the
excess of the fair market value of the Shares over the exercise price of the option.

Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Dividend Equivalent Awards and Other Stock- and Cash-Based Awards.
The current federal income tax consequences of other awards generally follow certain basic patterns: (i) stock appreciation rights are
taxed and deductible in substantially the same manner as nonqualified options; (ii) nontransferable restricted stock subject to a substantial
risk of forfeiture results in income recognition equal to the excess of the fair market value of the Shares over the price paid, if any,
only at the time the restrictions lapse (unless the recipient elects to accelerate recognition as of the date of grant through a Section
83(b) election); and (iii) restricted stock units, dividend equivalents, and other stock- or cash-based awards are generally subject
to tax at the time of payment. The Company or its subsidiaries generally should be entitled to a federal income tax deduction in an amount
equal to the ordinary income recognized by the participant at the time the participant recognizes such income.

The
participant’s basis for the determination of gain or loss upon the subsequent disposition of Shares acquired from a stock appreciation
right, restricted stock, restricted stock unit, dividend equivalent award, or other stock-based award will be the amount paid for such
Shares plus any ordinary income recognized when the Shares were originally delivered, and the participant’s capital gain holding
period for those shares will begin on the day after they are transferred to the participant.

Performance
Awards. The tax consequences of performance awards will generally mirror those of the underlying award type, each of which is
discussed above.

Parachute
Payments. The vesting of any portion of an award that is accelerated due to the occurrence of a change in control (such as a sale
event) may cause all or a portion of the payments with respect to such accelerated awards to be treated as “parachute payments”
as defined in the Code. Any such parachute payments may be non-deductible to either the Company or its subsidiaries, in whole or in part,
and may subject the recipient to a non-deductible 20% federal excise tax on all or a portion of such payment (in addition to other taxes
ordinarily payable).

Section
409A. The foregoing description assumes that Section 409A of the Code does not apply to an award under the 2024 Plan or the 2025
Plan. In general, stock options and stock appreciation rights are exempt from Section 409A if the exercise price per share is at least
equal to the fair market value per share of the underlying stock at the time the option or stock appreciation right was granted. Restricted
stock awards are not generally subject to Section 409A. Restricted stock units are subject to Section 409A unless they are settled within
two and one-half months after the end of the later of (1) the end of our fiscal year in which vesting occurs or (2) the
end of the calendar year in which vesting occurs. If an award is subject to Section 409A and the provisions for the exercise or settlement
of that award do not comply with Section 409A, then the participant would be required to recognize ordinary income whenever a portion
of the award vested (regardless of whether it had been exercised or settled). This amount would also be subject to a 20% federal tax
and premium interest in addition to the federal income tax at the participant’s usual marginal rate for ordinary income.

Director
Compensation

Other
than as set forth in the table above relating to their capacity as officers, our board members did not pay any compensation, reimburse
any expense of, make any equity awards or non-equity awards to, or pay any other compensation to, any of the other non-employee members
of the Board in the fiscal year ended December 31, 2024.

PRINCIPAL
STOCKHOLDERS

The
following table sets forth certain information concerning the ownership of our common stock as of the date of this prospectus, with respect
to: (i) each person, or group of affiliated persons, known to us to be the beneficial owner of 5% or more of our common stock; (ii) each
of our directors; (iii) each of our named executive officers; and (iv) all of our current directors and executive officers as a group.