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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liability is classified within Level 3 of the fair value hierarchy under ASC 820. The primary valuation assumptions used were: Maturity date 12/31/2027 Bond rate (CCC) 11.43% Volatility 98.0% Probability of Qualified Financing 25 % Timing of Qualified Financing 12/15/25 Probability of Qualified IPO 50 % Timing of Qualified IPO 12/15/25 Value of common stock, per 409A valuation $ 0.81 The following table presents the change in the fair value of the derivative liability during the nine months ended September Fair value at January 1, 2025 $ 364,398 Initial recognition upon issuance 701,876 Losse recognized in earnings 3,434 Transfers in / out of Level 3 - Fair value at September 30, 2025 $ 1,069,708 Changes in the fair value of the derivative liability resulted in an unrealized loss of $3,434 for the nine months ended September 30, 2025, which was recognized in other expense in the consolidated statement of operations.

Note
4 – Balance sheet components

Inventories
consist of the following:

September
30, December

Raw
materials $	200,961 $	-

Finished
goods - 295,024

Reserve
for obsolescence - (295,024	)

Prepaid
expenses consist of the following:

September
2025 December

Insurance $	117,681 $	102,657

Rent 17,507 -

Licenses 43,490 -

Other 35,372 2,054

Property
and equipment consist of the following:

September
30, December

Leasehold
improvements $	229,742 $	229,742

Accumulated
depreciation ( 116,754	) (82,858	)

Depreciation
expense of $33,896 was recorded for the nine months ended September 30, 2025 and 2024.

Accrued
liabilities consist of the following:

September
30, December

Accrued
payroll liabilities $	245,393 $	225,087

Accrued
interest 1,073,111 352,105

Royalties 190,213 190,213

Other
accrued expenses 57,907 16,945

Note
5 – Convertible notes payable

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 Notes”) to accredited investors the repayment of which is secured by a grant of security interest in
all the Company’s assets. The Series A 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 Notes that can be issued is $3,000,000.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

September
30, 2025 and 2024

(unaudited)

A member of the Board of
Directors and entities controlled by him purchased a total of $1,830,000 of the Series A Notes from
the Company. See Note 5.

The
conversion features of the Series A 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.

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 the price of $1.00 per
share.

Series A-1 Secured Convertible
Notes

From October 2024 through
September 2025, the Company issued $5,417,559 in principal amount of its secured convertible promissory notes (the “Series
A-1 Notes”) to accredited investors. The repayment of Series A-1 Notes is secured by a grant of security interest in all the Company’s
assets which security interest is pari passu to the security interest granted to the note holders. The Series A-1 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 Notes
that can be issued is $12,000,000. See Note 14.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

September
30, 2025 and 2024

(unaudited)

The
conversion features of the Series A-1 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.

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.

September 2025, the Company received a unanimous written consent of the board of directors to amend the Series A-1 Secured Convertible
Notes to provide for a discount of 8.25% to any purchaser of a secured convertible promissory note in the principal amount of at least
$2,327,400, increase the maximum aggregate amount of Series A-1 Secured Convertible Notes to $12,000,000 and to authorize the second
amendment to the certificate of designations of the Series A-1 preferred stock by 2,000,000 shares.

While
the Company anticipates an automatic conversion of the Series A Notes and Series A-1 Secured Notes due to a Qualified Financing
or Qualified IPO prior to maturity, a derivative liability of $1,069,708 has been recorded as the fair value of the possibility
the notes will fully mature. See Note 3.

The
following table provides information for the convertible notes:

Series A Series A-1 Total

As of September 30, 2025:

Principal outstanding $	3,000,000 $	5,417,559 $	8,417,559

Accrued interest $	714,696 $	358,415 $	1,073,111

Discount $	21,575 $	939,781 $	961,356

Derivative liability $	47,870 $	1,021,838 $	1,069,708

For the nine months ended September 30, 2025:

Interest expense $	388,415 $	322,115 $	710,530

Amortization of discount $	10,331 $	150,400 $	160,771

As of September 30, 2024:

Principal outstanding $	3,000,000 $	- $	3,000,000