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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deferred income tax assets, the Company considers all available positive and negative evidence, including its operating results, ongoing tax planning and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis. In the event the Company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount, it would make an adjustment to the valuation allowance that would reduce the provision for income taxes. Conversely, in the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period when such determination is made. As of December 31, 2024 and 2023, the Company has recorded a full valuation allowance on its net deferred tax assets. BIOVENTRIX, INC. Notes to Consolidated Financial Statements December 31, 2024 and 2023

Accounting
for uncertain tax positions requires the Company to use a two-step approach to recognize and measure uncertain tax positions. The first
step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely
than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second
step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company
classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of
cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.

Stock-based
compensation – The Company measures and recognizes stock-based compensation expense in the financial statements for all share-based
payment awards made to employees, directors, and non-employees based on estimated fair values on the date of grant based on using the
Black- Scholes option pricing model. Common stock issued for services are recorded based on the fair value of the consideration received
or the fair value of the equity instruments issued, whichever is more reliably measurable.

The
Company’s determination of fair value of share-based payment awards on the date of grant using the Black-Scholes option-pricing
model is affected by the Company’s estimated fair value of common stock as well as assumptions regarding a number of highly complex
and subjective variables. These variables include, but are not limited to:

Expected
Term – Expected term represents the period that the Company’s stock-based awards are expected to be outstanding and is
determined using the simplified method.

Expected
Volatility – Expected volatility is estimated by studying the volatility of comparable public companies for similar terms.

Expected
Dividend – The Black-Scholes valuation model calls for a single expected dividend yield as an input.

Risk-Free
Interest Rate – The risk-free interest rate is based on the U.S. Treasury zero-coupon issued in effect at the time of grant
for periods corresponding with the expected term of the option.

Stock-based
compensation expense for all share-based payment awards is based on the grant date calculated fair value. The Company recognizes these
compensation costs, net of an estimated forfeiture rate, and recognizes the compensation costs for only those shares expected to vest
on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years. The
Company estimated the forfeiture rate based on its historical experience for annual grant years where the majority of the vesting terms
have been satisfied.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

The
Financial Accounting Standards Board (FASB) has issued several new accounting standards that are not yet effective for the Company, including
ASU 2023-01 (Leases – Common Control Arrangements), ASU 2023-02 (Equity Method Investments), ASU 2023-05 (Joint Venture Formations),
and ASU 2023-07 (Segment Reporting).

The
Company has evaluated these new standards and does not expect them to have a material impact on its financial position, results of operations,
or cash flows upon adoption.

Note 3 – Restatement of previously
issued consolidated financial statements

As a result of an internal
review, the Company identified errors related to the maturity conversion feature of its convertible notes
that affected previously issued consolidated financial statements as of and for the year ended December 31, 2024. See Note 4.

The
review was prompted by the Company’s receipt of comments issued by the staff of the SEC upon its review of the Company’s
draft registration statement. After review of the staff’s comments, discussions with the staff, and investigation and
further analysis, the Company determined that it had made an error in the application of generally accepted accounting principles as
the maturity conversion feature of the notes was an embedded derivative that needed to be recorded at fair value per ASC 815.

The
following table presents the effects of the Restatement Adjustments on the Company’s consolidated balance sheet as of December

Previously Stated Restatement
Adjustments As
Restated

Liabilities
and Deficit

Current
liabilities:

Discount
on convertible notes $	- $	(375,292	) $	(375,292	)

Total
current liabilities $	8,106,946 $	(375,292	) $	7,731,654

Long-term
liabilities:

Derivative
liability $	- $	364,398 $	364,398

Total
long-term liabilities $	222,332 $	364,398 $	586,730

Total
liabilities $	8,329,278 $	(10,894	) $	8,318,384

Stockholders’
deficit:

Accumulated
deficit $	(223,584,567	) $	10,894 $	(223,573,673	)

Total
deficit $	(5,050,029	) $	10,894 $	(5,039,135	)

The
following table presents the effects of the Restatement Adjustments on the Company’s consolidated statements of operations as of
December 31, 2024:

Previously Stated Restatement
Adjustments As
Restated

Other
expense (income):

Interest,
net $	292,134 $	17,837 $	309,971

Other $	6,918 $	(28,731	) $	(21,813	)

Total
other expense (income) $	299,052 $	(10,894	) $	288,158

Loss
from operations before provision for income taxes $	(3,861,568	) $	10,894 $	(3,850,674	)

Net
loss $	(3,861,568	) $	10,894 $	(3,850,674	)

The following table
presents the effects of the Restatement Adjustments on the Company’s consolidated statements of cash flows as of December 31, 2024:

As Previously Stated Restatement Adjustments As Restated

Cash flows from operating activities

Net loss $	3,861,568 $	(10,894	) $	3,850,674

Adjustments to reconcile net loss to net cash flows from operating activities:

Change in fair value of derivative liabilities $	- $	(28,731	) $	(28,731	)

Discount on convertible notes $	- $	17,837 $	17,837

Supplementary cash flows information

Non-cash operating activities:

Derivative liability $	- $	393,129 $	393,129

Note
4 – Fair value of derivative liability

The
Company has identified an embedded derivative related to the maturity conversion feature of its secured convertible notes that is required
to be bifurcated and accounted for separately in accordance with ASC 815, Derivatives and Hedging. The derivative liability is measured
at fair value at each reporting date, with changes in fair value recognized in the consolidated statement of operations.

December 31, 2024, the fair value of the derivative liability was $364,398. The fair value was estimated using a probability-weighted
expected return model, which incorporates significant unobservable inputs, including probability of different events, timing of each
event, discount rate and value of the Company’s common stock. Accordingly, the derivative liability is classified within Level
3 of the fair value hierarchy under ASC 820.

The
following table presents the change in the fair value of the derivative liability during the year ended December 31, 2024:

Fair value at January 1, 2024 $	-

Initial recognition upon issuance 393,129

(Gains) / losses recognized in earnings (28,731	)

Transfers in / out of Level 3 -

Fair value at December 31, 2024 $	364,398

Changes
in the fair value of the derivative liability resulted in an unrealized gain of $28,731 for the year ended December 31, 2024, which was
recognized in other expense in the consolidated statement of operations.

Note
5 – Revenue:

The
following table presents the Company’s total revenue disaggregated by geographical region for the years ended December 31:

Europe $	- $	197,584

United States - -

Asia Pacific - -

The
following table presents the Company’s total revenue disaggregated by revenue type for the years ended December 31:

Sales under the CE label $	- $	197,584

Sales to clinical trial participants under IDE - -

Note
6 – Balance sheet components:

Inventories
at December 31, consist of the following:

Finished goods $	295,024 648,480

Reserve for obsolescence (295,024	) (648,480	)

Property
and equipment as of December 31, consists of the following:

Leasehold improvements $	229,742 $	229,742

Accumulated depreciation (82,858	) (37,663	)

Depreciation
expense was $45,195 and $37,673 for the years ended December 31, 2024, and 2023, respectively.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

Accrued
liabilities at December 31, consist of the following:

Accrued payroll liabilities $	225,087 $	225,117

Accrued interest 352,105 -

Royalties 190,213 190,213

Other accrued expenses 16,945 17,158

Note
7 – Convertible notes payable:

Unsecured Convertible Notes