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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“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. During the three months ended March 31, 2025, the Company issued $450,000 of Series A-1 Secured Convertible Notes. From April 1, 2025 through July 8, 2025 the Company issued $1,317,000 of Series A-1 Secured Convertible Notes bringing the total raised to $3,477,000. The aggregate limit of the Series A-1 Secured Convertible Notes that can be issued is $7,500,000. The Series A-1 Secured Convertible Notes accrue interest at the annual rate of 15% compounded quarterly and have a maturity date of December BIOVENTRIX, INC. Notes to Consolidated Financial Statements March 31, 2025 and 2024 (unaudited) 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 at the price of $3.33 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-1 Preferred Stock at the price of $3.33 per share.

Note
5 – Related party transactions:

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 4.

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 4.

March 2024, Officers and Directors received 348,000 shares of restricted stock awards, 232,000 shares valued at $0.80 per share vested
immediately. The Company recognized $185,600 of stock-based compensation expense during the three months ended March 31, 2024. See Note

January 1, 2025, a Co-Chief Executive Officer was granted 191,000 stock options at an exercise price of $1.00 per share. The option shares
vest 47,750 after one year and, thereafter, 3,979 of the option shares shall vest at the end of each full month over thirty-six (36)
consecutive months. See Note 9.

January 15, 2025, a Co-Chief Executive Officer and President was granted 222,000 stock options at an exercise price of $1.00 per
share. The option shares vest 55,500 after one year and, thereafter, 4,625 of the option shares shall vest at the end of each full month
over thirty-six (36) consecutive months. See Note 9.

During
the three months ended March 31, 2025, 22,002 shares of restricted stock issued to our Co-Chief Executive Officers vested resulting in
$17,602 of stock-based compensation being recognized by them. In addition, 24,750 shares of restricted stock issued to a member of the
Board of Directors also vested during the three months ended March 31, 2025, resulting in stock-based compensation in the amount of $19,800
being recognized by him. See Note 9.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

March
31, 2025 and 2024

(unaudited)

Note
6 – Income taxes:

There
is no provision for federal income taxes because the Company has incurred cumulative operating losses from the date of inception. The
Company has made tax payments consisting of the state minimum tax.

The
Company does not have any unrecognized tax benefits as of March 31, 2025. The Company did not recognize any expense for interest and
penalties related to uncertain tax positions during the three months ended March 31, 2025, and the Company does not have any amounts
related to interest and penalties accrued at March 31, 2025.

Note
7 – Dividends:

Holders
of preferred 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. The holders of the Series A preferred stock are not entitled
to cumulative dividends. No dividends have been declared by the board of directors as of March 31, 2025.

Note
8 – Reserved shares of common stock:

of March 31, 2025, the Company had reserved shares of common stock for future issuance as follows:

March
31 December

Series A Preferred Stock 1,565,000 1,565,000

Convertible Notes 5,160,000 4,710,000

Stock options available for grant 1,002,000 1,500,000

Stock
options outstanding 498,000 -

Total
common shares reserved

Note
9 – Stock option plan:

During
the three months ended March 31, 2025, the Company granted 498,000 stock options at an exercise price of $1.00 per share. The options
vest over 48 months, with no vesting until after the twelfth month then vested equally each month for the next 36 months. 413,000
of the granted stock options were granted to related party. See Note 5.

March 2024, Officers and Directors received 348,000 shares of restricted stock awards, 232,000 shares valued at $0.80 per share vested
immediately. The Company recognized $185,600 of stock-based compensation expense during the three months ended March 31, 2024. See Note

September 2024, the Company issued 231,000 shares of restricted stock to certain officers, directors, and consultants of the Company.
The restricted stock was valued at $0.80 per share based on an independent 409A valuation received from a global financial advisory firm
specializing in corporate finance and business valuations. As 134,745 shares vested by December 31, 2024, the Company recognized $107,796
in selling, general and administrative expense of $46,202 during the period. As an additional 57,753 shares vested during the three months ended March 31, 2025, the company recognized selling,
general and administrative expense of $46,202 during the period. The remaining 38,502 shares vested in the three months ended June 30,
2025. See Note 5.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

March
31, 2025 and 2024

(unaudited)

Note
10 – 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.

Lease-related
assets and liabilities consist of the following:

March
31, December

Lease
right of use asset $	317,371 $	344,487

Lease
liability, current 143,057 142,061

Lease
liability, non-current 193,737 222,332

Total
lease liability $	336,795 $	364,393

Lease
payments remaining at March 31, 2025, consist of the following :

Total
lease payments 384,329

Less:
imputed interest at 11.67% (47,534	)

Present
value of lease payments $	336,795

Weighted-average
remaining lease term 2.50
years

Lease
expense of $57,282 and $49,460 was recorded during the three months ended March 31, 2025, and 2024, respectively.