SEC Filing Document

Company: BIOVENTRIX, INC.
Ticker: 
CIK: 1283259
Filing Type: DRS
Document Type: DRS
Date Filed: 2025-08-05
Accession Number: 0001641172-25-022123
Exchange: 
SIC Code: 3841
SIC Description: Surgical & Medical Instruments & Apparatus
URL: https://www.sec.gov/Archives/edgar/data/1283259/000164117225022123/filename1.htm

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to adjustment for certain events, including dilutive issuances, stock splits, and reclassifications) at a conversion price originally equal to the original issue price subject to certain adjustments. Mandatory Conversion, Series A Preferred Stock – Upon an IPO with gross proceeds of $7,500,000 or more, the Series A Preferred Stock is subject to immediate mandatory conversion into Common Stock at a conversion rate equal to the greater of (A) the then effective conversion rate (defined as the Series A Original Issue Price divided by the Series A Conversion Price) or (B) one times (1x) the Original Issue Price of the Series A Preferred Stock divided by the price per share of the Common Stock issued in this offering. For Series A preferred shares, the original issue price is $10.00 per share and the current conversion price is $10.00 per share subject to adjustment for stock splits and other forms of recapitalization.

Mandatory
Conversion, Series A-1 Preferred Stock – Upon the closing of an offering with gross proceeds of $7,500,000 or more, Series
A-1 Preferred Stock is subject to immediate mandatory conversion into Common Stock at a conversion rate equal to the greater of (A) the
then effective conversion rate (defined as the Series A-1 Original Issue Price divided by the Series A-1 Conversion Price) or (B) three
times (3x) the Original Issue Price of the Series A-1 Preferred Stock divided by the price per share of the Common Stock issued in this
offering. For Series A-1, the original issue price is $3.33 per share and the current conversion price is $3.33 per share subject to
adjustment for stock splits and other forms of recapitalization.

Voting
Rights – Each share of Series A preferred stock shall entitle the holder thereof to the number of votes per share equal to
the number of shares of common stock into which such share is convertible.

Rights
and Preferences of Common Shareholders

Dividends
– Holders of common stock are entitled to receive dividends whenever funds are legally available and when declared by the Board
of Directors, subject to the prior rights of holders of all classes of stock outstanding.

Liquidation
Rights – after payment of the full liquidation preference to holders of preferred stock in the event of any liquidation, dissolution,
or winding-up of the Company the remaining assets of the Company legally available for distribution shall be distributed ratably to the
holders of the common stock.

Voting
Rights – Each share of common stock is entitled to one vote.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Reserved
shares of common stock – As of December 31, 2024, the Company had reserved shares of common stock for future issuance as follows:

Series A Preferred Stock 1,565,000

Convertible Notes 4,710,000

Stock options available for grant 1,500,000

Stock options outstanding -

Stock warrants outstanding -

Total common shares reserved 7,775,000

Note
10 – Stock option plan:

August 2024, the Company adopted the 2024 Equity Incentive Plan (the “2024 Plan”), which provides for the granting of incentive
stock options, nonstatutory stock options and restricted stock awards to employees, directors and consultants of the Company and its
affiliates.

The
2024 Plan is administered by the Board of Directors and permits the issuance of options for the purchase of shares of the Company’s
common stock. Options to purchase its common stock are granted at an exercise price not less than the fair value of the Company’s
common stock as of the date of grant. Nonstatutory stock options are granted at an exercise price not less than the fair value of the
Company’s common stock at the date of grant unless granted pursuant to a merger or other corporate transaction.

Options
vest as determined by the Board of Directors and are exercisable for a maximum period of ten years after the date of grant. Under the
terms of the 2024 Plan, certain options are immediately exercisable and subject to repurchase by the Company.

The
2024 Plan reserves a total of 1,500,000 shares that may be used. No options or stock awards have been granted from the 2024 Plan as of
December 31, 2024.

Note
11 – Commitments and contingencies:

The
Company leases its facility under a non-cancelable lease agreement accounted for in accordance with ASC 842, Leases. The Company determines
if an arrangement is a lease at inception. Right-of-use (ROU) assets represent the Company’s right to use an underlying asset for
the lease term, and lease liabilities represent the Company’s obligation to make lease payments over the term. Lease ROU assets
and liabilities are recognized at commencement based on the present value of lease payments over the lease term, using the Company’s
incremental borrowing rate unless the rate implicit in the lease is readily determinable.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Lease-related
assets and liabilities at December 31, consist of the following:

Lease right of use asset $	344,487 $	445,133

Lease liability, current 142,061 137,885

Lease liability, non-current 222,332 326,214

Total lease liability $	364,393 $	464,099

Lease
payments remaining at December 31, consist of the following :

Total lease payments 421,303 566,324

Less: imputed interest at 11.67% $	(56,910	) $	(102,225	)

Present value of lease payments $	364,393 $	464,099

Weighted-average remaining lease term 2.75 years 3.75 years

Lease
expense of $145,962 was recorded in 2024 and 2023.

the normal course of business, the Company is subject to various legal matters from which contingent liabilities may arise. The Company
assesses, in conjunction with its legal counsel, the need to record a liability for litigation and contingencies. Reserve estimates are
recorded when and if it is determined that a loss-related matter is both probable and reasonably estimable. As of December 31, 2024,
and 2023, the Company did not have any material reserve estimates recorded.

August 31, 2023, the Company received a complaint (the “Complaint”) by former stockholder Gary Moline (the “Plaintiff”)
that was filed in the Court of Chancery of the State of Delaware (the “Court”), in which the Plaintiff asserted various causes
of action, including breach of charter, breach of fiduciary duties claims, and assertion of a class action designation plus attorney’s
fees, against BioVentrix, its officers and directors, and certain other parties (the “Defendants”) in connection with a recapitalization
of BioVentrix that was consummated in February 2023. There is no amount of liquidated damages asserted. The Company believes that it
has substantial defenses to these claims and intend to vigorously dispute these allegations and defend against the assertions in the
Complaint and filed a Motion to Dismiss the Complaint on October 5, 2023, and an Opening Brief in support of the Company’s Motion
to Dismiss on November 7, 2023. The Plaintiff responded to the Motion to Dismiss on December 15, 2023, in which the Plaintiff conceded
that he no longer intends to pursue a breach of charter claim but otherwise opposed the remainder of Defendants’ Motion to Dismiss.
On January 5, 2024, the Defendants filed their Reply to Plaintiff’s Opposition to Defendants’ Motion to Dismiss. The Court
dismissed Count I and Count III of the Plaintiff’s Complaint on May 1, 2024, and the Defendants filed an Answer to Plaintiff’s
Complaint with the Court on June 12, 2024. The Company is currently in the discovery process regarding this Complaint.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Note
12 – Employee benefit plans:

The
Company has a 401(k) Plan in which employees who have met certain eligibility requirements may participate. Each eligible employee may
elect to contribute to the 401(k) Plan, and the Company may make discretionary contributions. For the years ended December 31, 2024,
and 2023 the Company recorded contributions of $10,549 and $105,938, respectively.

Note
13 – Segments:

The
Company operates in one reportable segment, which is the development of a new product to treat heart failure. The Company’s chief
operating decision maker (“CODM”) is the chief executive officer. The CODM regularly reviews and uses consolidated net loss,
as reported on our Consolidated Statements of Operations in evaluating the overall performance of our single reporting segment. As a
result, the Company has determined that it has only one reportable segment.

Although
the Company has generated minimal revenue during the reporting period, it continues to incur expenses related to research and development,
general and administrative activities, and other operational costs. The CODM uses these expense categories to assess the Company’s
performance and allocate resources.

The
accounting policies of the single segment are the same as those described in the summary of significant accounting policies. There have
been no significant changes in measurement methods during the reporting period.

Geographically,
we have no assets in a foreign country requiring separate disclosure.

The
following table provides the significant expenses that management used to manage our one reportable segment:

Research and development $	589,951 $	8,240,683

Selling, general and administrative 2,972,565 5,826,854

Total operating expenses $	3,562,516 $	14,067,537

Note
14 – Subsequent events: