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 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.

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 Series A-1 Secured Convertible Notes due to a Qualified Financing or Qualified
IPO prior to maturity, a derivative liability of $532,191 has been recorded as the fair value of the possibility the notes will fully
mature. See Note 3.

Note
6 – 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. In April 2024 the directors sold 195,780 of these shares to the Company at cost in to be used as
incentive for certain purchasers of Series A Notes (the “Sweetener Shares”).

March 2024, a member of the Board of Directors and entities controlled by him purchased $1,484,000 of Series A Notes from the
Company. In August 2024, an additional purchase of $346,000 was made, for a total of $1,830,000 Series A Notes. See Note 4.

April 2024, the Company issued 225,900 Sweetener Shares to certain purchasers of Series A Secured Convertible Notes. An entity controlled
by a member of the Board of Directors received 148,400 of the Sweetener Shares related to his $1,830,000 purchase of notes in March 2024.

April 2024, the Company issued 216,000 restricted stock awards to two officers of the Company. These awards fully vested, resulting in
$172,800 of stock-based compensation expense recorded in 2024.

January 2025, the Co-Chief Executive Officers were granted 413,000 stock options at an exercise price of $1.00 per
share. The options vest 25% after twelve months and 6.25% per month thereafter over the next thirty-six months. The Company recognized
$19,976 of stock-based compensation expense in selling, general administration expenses during the six months ended June 30, 2025, for
these grants. See Note 9.

During
the six months ended June 30, 2025, our Co-Chief Executive Officers vested in 36,670 shares of restricted stock. The
Company recognized $29,336 of stock-based compensation expense in selling, general administration expenses during the six months ended
June 30 for the vesting. In addition, 41,250 shares of restricted stock issued to a member of the Board of Directors also vested
during the six months ended June 30, 2025, resulting in stock-based compensation of $33,000 being recognized in
selling, general administration expenses for the vesting.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

(unaudited)

Note
7 – 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 June 30, 2025. The Company did not recognize any expense for interest
and penalties related to uncertain tax positions during the six months ended June 30, 2025, and the Company does not have
any amounts related to interest and penalties accrued at June 30, 2025.

Note
8 – 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 June 30, 2025.

Note
9 – Reserved shares of common stock:

The
Company had shares of common stock reserved for future issuance as follows:

June
30, December

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

Convertible Notes 3,788,889 3,513,514

Equity
incentive shares available for grant 459,500 1,500,000

Stock
options outstanding 1,040,500 -

Total
common shares reserved $	6,853,889 $	6,578,514

Note
10 – Stock-based compensation:

In August 2024, the Company
adopted the 2024 Equity Incentive Plan (the “Equity 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 Equity Plan
reserves a total of 1,500,000 shares that may be used. No shares were issued in 2024 under the Equity Plan.

During
the six months ended June 30, 2025, the Company granted 1,040,500 stock options under the Equity Plan, of which
413,000 were to related parties. The stock options were granted at an exercise price of $1.00 per share, vesting over 48 months.
The fair value of options granted was estimated using the Black-Scholes model assuming volatility of 50%, weighted-average risk-free
interest rate of 4.59% and an expected life of 6 years. The Company recognized $23,390 of stock-based compensation expense
in selling, general and administrative expense for the stock options granted, of which $19,876 was for the related parties.
See Note 5.

In September
2024, the Company issued 231,000 shares of restricted common stock to certain officers, directors and consultants of the Company. Of
these, 134,745 shares vested in 2024 and the remaining 96,255 shares vested in 2025. As the restricted stock was valued at $0.80 per
share, the Company recorded $77,004 in selling, general administration expenses for the 2025 vesting. See Note 5. The restricted stock
was not issued the Equity Plan.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

June
30, 2025 and 2024

(unaudited)

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.

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

June
30, December

Lease
right of use asset $	289,592 $	344,487

Lease
liability, current 144,125 142,061

Lease
liability, non-current 164,407 222,332

Total
lease liability $	308,532 $	364,393

Lease
payments remaining at June 30, 2025, consist of the following:

Total
lease payments 347,354

Less:
imputed interest at 11.67% (38,822	)

Present
value of lease payments $	308,532

Weighted-average
remaining lease term 2.25
years

Lease
expense of $119,650 and $86,438 was recorded during the six months ended June 30, 2025, and 2024, respectively.

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 June 30, 2025,
and December 31, 2024, the Company did not have any material reserve estimates recorded.

Note
12 – Employee benefit plans