SEC Filing Document

Company: BIOVENTRIX, INC.
Ticker: 
CIK: 1283259
Filing Type: S-1/A
Document Type: S-1/A
Date Filed: 2026-05-15
Accession Number: 0001493152-26-023752
Exchange: 
SIC Code: 3841
SIC Description: Surgical & Medical Instruments & Apparatus
URL: https://www.sec.gov/Archives/edgar/data/1283259/000149315226023752/forms-1a.htm

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likely than not that they will be realized. evaluating the ability to recover its deferred 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 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 March 31, 2026 and 2025, the Company has recorded a full valuation allowance on its net deferred tax assets.

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.

Recently
Issued Accounting Standards Not Yet Adopted

The
Financial Accounting Standards Board (“FASB”) has issued accounting standards updates (“ASUs”) that are not yet
effective for the Company or have not yet been adopted by the Company. The Company is currently evaluating the impact of these ASUs on
its condensed consolidated financial statements.

BIOVENTRIX, INC.

Notes
to Consolidated Financial Statements

March 31, 2026 and 2025

(unaudited)

Expense
Disaggregation (ASU 2023-07, Income Statement—Reporting Comprehensive Income.

This ASU requires enhanced disclosures
about significant expense categories, including the nature and amounts of expenses included in each relevant income statement line item.
The Company is currently evaluating the impact of this guidance on its disclosures. The Company expects this ASU to result in expanded
disclosures, particularly related to research and development expenses, including clinical trial costs, but does not expect a material
impact on its condensed consolidated financial position, results of operations, or cash flows.

Income
Taxes (ASU 2023-09, Improvements to Income Tax Disclosures)

This
ASU enhances income tax disclosure requirements, including additional disaggregation of income taxes paid and expanded information regarding
the effective tax rate reconciliation. The Company is currently evaluating the impact of this guidance and expects it to impact disclosures
only.

The
Company does not expect the adoption of any other recently issued accounting standards to have a material impact on its condensed consolidated
financial statements.

Note
3 – Fair value of derivate 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.

March 31, 2026, the fair value of the derivative liability was $1,533,647. The fair value was estimated using a probability-weighted
expected return model, which incorporates significant unobservable inputs, including probability and timing of different events, 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
primary valuation assumptions used were:

Maturity date 12/31/2027

Bond rate (CCC) 12.14% - 13.86	%

Volatility 91.0% - 92.8	%

Probability of Qualified Financing 25	%

Timing of Qualified Financing 9/30/26

Probability of Qualified IPO 50	%

Timing of Qualified IPO 9/30/26

Value of common stock, per 409A valuation $	1.20

The
following table presents the change in the fair value of the derivative liability during the three months ended March 31, 2026:

Fair value at January 1, 2026 $	1,349,735

Initial recognition upon issuance 196,628

Gain recognized in earnings (12,716	)

Transfers in / out of Level 3 -

Fair value at March 31, 2026 $	1,533,647

Changes
in the fair value of the derivative liability resulted in an unrealized gain of $12,716 for the three months ended March 31, 2026,
which was recognized in other expense in the consolidated statement of operations.

BIOVENTRIX, INC.

Notes
to Consolidated Financial Statements

March 31, 2026 and 2025

(unaudited)

Note
4 – Balance sheet components

Prepaid expenses consist of the following:

March 31, December 31,

Insurance $	88,368 $	101,357

Research and development 40,152 60,153

Licenses 14,319 19,883

Rent - 18,287

Undeposited funds - 50,000

Other 35,374 2,054

Prepaid expenses $	158,213 $	251,734

Property and equipment, net consists of the following:

Leasehold improvements $	229,742 $	229,742

Accumulated depreciation (139,352	) (128,053	)

Property and equipment, net $	90,390 $	101,689

Depreciation expense of $11,299 and $45,195 was recorded for the three months ended March 31, 2026 and year ended December 31, 2025, respectively.

Accrued liabilities consist of the following:

Interest $	1,907,423 $	1,475,669

Payroll liabilities 811,594 303,890

Legal 796,445 750,429

Royalties 190,213 190,213

Other accrued expenses 85,425 59,196

Accrued liabilities $	3,791,100 $	2,779,397

Note
5 – Convertible notes payable

Series
A Secured Convertible Notes

During
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.

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.

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 $20,000,000) 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.

BIOVENTRIX,
INC.

Notes
to Consolidated Financial Statements

March
31, 2026 and 2025

(unaudited)