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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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

January 2023, the Company issued $3,000,000 in principal amount of its unsecured convertible promissory notes (the “Unsecured Convertible
Notes”) to accredited investors which $3,000,000 principal amount included the exchange of $1,000,000 in principal amount of its
then outstanding unsecured short-term promissory notes for $1,000,000 in principal amount of Unsecured Convertible Notes. The Unsecured
Convertible Notes accrue interest at an annual rate of 10%, had a maturity date of June 30, 2023, and the principal amount automatically
converts into the type of securities issued by the Company in a subsequent equity financing of at least $10,000,000 in gross proceeds
at the price per share paid by investors in the equity financing. A cash fee of 1.5% of the principal amount of the Unsecured Convertible
Note is also due on the earlier of the conversion of the Unsecured Convertible Note or the maturity date of the Unsecured Convertible
Note. On March 21, 2023, the Company issued an additional Unsecured Convertible Note in the principal amount of $2,650,000. On March
29, 2023, the aggregate outstanding amount of $5,650,000 was converted into Series A Preferred Stock. See Note 9.

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 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. The Series A Secured Convertible 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 Convertible Notes that can be issued is $3,000,000.

The
conversion features of the Series A Secured Convertible Notes are as follows: