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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 10-Q

(Mark One) 

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2021

  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________to _____________

Commission File Number: 001-39015

BIOVIE INC.

(Exact name of registrant as specified in its charter)

Nevada   46-2510769
(State or other jurisdiction of 
incorporation or organization)
  (I.R.S. Empl. Ident. No.)

 

2120 Colorado Avenue Suite 230
Santa Monica, CA 90404
(Address of principal executive offices, Zip Code)
 
(310)-444-4300
(Registrant's telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol(s) Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share BIVI The NASDAQ Stock Market, LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes                                           No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

 

Yes                                           No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

  

Large accelerated filer   Accelerated filer  
Non-accelerated Filer   Smaller reporting company  
    Emerging growth company  

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes                                           No

 

There were 13,958,516 shares of the Registrant’s $0.0001 par value Class A common stock outstanding as of May 7, 2021.

 
 
 
 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements 1
  Condensed Balance Sheets at March 31, 2021 (unaudited) and June 30, 2020 1
  Condensed Statements of Operations (unaudited) - for the three months and nine months ended March 31, 2021 and 2020 2
  Condensed Statements of Cash Flows (unaudited) - for the nine months ended March 31, 2021 and 2020 3
  Condensed Statements of Changes in Stockholders’ Equity/(Deficit) (unaudited) – for the periods from July 1, 2019 through March 31, 2020 and July 1, 2020 through March 31, 2021 4
  Notes to Unaudited Condensed Financial Statements 5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 20
Item 3. Quantitative and Qualitative Disclosures About Market Risk 23
Item 4. Controls and Procedures 23

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings 24
Item 1A. Risk Factors 24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24
Item 3. Defaults Upon Senior Securities 24
Item 4. Mine Safety Disclosures 24
Item 5. Other Information 24
Item 6. Exhibits 25
     
SIGNATURES 26

 

FORWARD-LOOKING STATEMENTS

 

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, and Section 27A of the Securities Act of 1933. Any statements contained in this report that are not statements of historical fact may be forward-looking statements. When we use the words “intends,” “estimates,” “predicts,” “potential,” “continues,” “anticipates,” “plans,” “expects,” “believes,” “should,” “could,” “may,” “will” or the negative of these terms or other comparable terminology, we are identifying forward-looking statements. Forward-looking statements involve risks and uncertainties, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. These factors include our research and development activities, distributor channel; compliance with regulatory impositions; and our capital needs. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

 

Except as may be required by applicable law, we do not undertake or intend to update or revise our forward-looking statements, and we assume no obligation to update any forward-looking statements contained in this report as a result of new information or future events or developments. Thus, you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. You should carefully review and consider the various disclosures we make in this report and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks, uncertainties and other factors that may affect our business.

 

All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law. When used in this report, the terms “BioVie”, “Company”, “we”, “our”, and “us” refer to BioVie Inc.

 

 
 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

BioVie Inc.

Condensed Balance Sheets 

 

   March 31,  June 30,
   2021  2020
ASSETS   (Unaudited)      
           
CURRENT ASSETS:          
Cash  $11,351,258   $37,195 
Other assets   42,855    375,785 
Total current assets   11,394,113    412,980 
           
OTHER  ASSETS:          
Intangible assets, net   1,153,194    1,325,226 
Goodwill   345,711    345,711 
Total other assets   1,498,905    1,670,937 
           
TOTAL ASSETS  $12,893,018   $2,083,917 
           
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)          
           
CURRENT LIABILITIES:          
Accounts payable and accrued expenses  $1,428,434   $1,259,206 
Derivative liability - warrants         16,411,504 
Derivative liability - conversion option on convertible debenture         5,000,800 
Convertible debenture - related party, net of unearned discount of $0 and $462,864 and capitalized accrued interest of $0 and $48,407 at March 31, 2021 and June 30, 2020, respectively         848,543 
Total current liabilities   1,428,434    23,520,053 
           
Loan payable   62,500    62,500 
           
TOTAL LIABILITIES   1,490,934    23,582,553 
           
Commitments and contingencies (Note 8)          
           
STOCKHOLDERS' EQUITY (DEFICIT)          
           
Preferred stock; $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding            
Common stock, $0.0001 par value; 800,000,000 shares authorized at March 31, 2021 and June 30, 2020; 13,957,792 and 5,204,392 shares issued and outstanding at March 31, 2021 and June 30, 2020, respectively   1,395    520 
Additional paid in capital   104,753,666    19,538,742 
Accumulated deficit   (93,352,977)   (41,037,898)
Total stockholders' equity (deficit)   11,402,084    (21,498,636)
           
TOTAL LIABILITIES AND STOCKHOLDERS'  EQUITY (DEFICIT)  $12,893,018   $2,083,917 

 

See accompanying notes to unaudited condensed financial statements

 

-1-

 Table of Contents

BioVie Inc.

Condensed Statements of Operations

(Unaudited)

 

   Three Months Ended   Nine Months Ended
   March 31 2021  March 31 2020  March 31 2021  March 31 2020
             
OPERATING EXPENSES:                    
Amortization expense  $57,344   $57,344   $172,032   $172,032 
Research and development expenses   696,657    353,198    1,759,769    1,003,124 
Selling, general and administrative expenses   2,247,510    288,711    4,519,830    940,762 
TOTAL OPERATING EXPENSES   3,001,511    699,253    6,451,631    2,115,918 
                     
LOSS FROM OPERATIONS   (3,001,511)   (699,253)   (6,451,631)   (2,115,918)
                     
OTHER (INCOME) EXPENSE:                    
Change in fair value of derivative liabilities         (366,550)   (8,279,919)   (8,125,328)
Interest expense         33,699    559,455    3,532,234 
Interest income   (8,643)         (14,408)   (233)
TOTAL OTHER (INCOME) EXPENSE, NET   (8,643)   (332,851)   (7,734,872)   (4,593,327)
                     
                     
NET (LOSS) INCOME  $(2,992,868)  $(366,402)  $1,283,241   $2,477,409 
                     
Deemed dividends - Related Party               53,598,320    17,099,058 
                     
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS  $(2,992,868)  $(366,402)  $(52,315,079)  $(14,621,649)
                     
NET (LOSS) INCOME PER COMMON SHARE                    
- Basic  $(0.22)  $(0.07)  $(4.64)  $(3.02)
- Diluted  $(0.22)  $(0.07)  $(4.64)  $(3.02)
                     
WEIGHTED AVERAGE NUMBER OF COMMON  SHARES OUTSTANDING                    
- Basic   13,919,933    5,199,003    11,269,212    4,839,802 
- Diluted   13,919,933    5,199,003    11,269,212    4,839,802 

 

See accompanying notes to unaudited condensed financial statements

 

-2-

 Table of Contents


BioVie Inc.

Condensed Statements of Cash Flows

(Unaudited)

   Nine Months Ended
   March 31, 2021  March 31, 2020
       
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income  $1,283,241   $2,477,409 
Adjustments to reconcile net income to net cash used in operating activities:          
Amortization of intangible assets   172,032    172,032 
Stock based compensation   2,340,533    24,846 
Common shares issued for interest payment         13,487 
Common shares issued for service         39,200 
Interest expense from convertible debenture   537,275    3,516,537 
Change in fair value of derivative liabilities   (8,279,919)   (8,125,328)
Changes in operating assets and liabilities          
Other assets   332,930    (243,030)
Accounts payable and accrued expenses   169,228    856,639 
Net cash used in operating activities   (3,444,680)   (1,268,208)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Net proceeds from issuance of common stock   15,628,010       
Proceeds from exercise of warrants   516,551       
Payment of convertible debenture - related party   (1,821,818)      
Proceeds from loan payable - related party         432,000 
Proceeds from convertible debenture - related party   436,000    500,000 
Net cash provided by financing activities   14,758,743    932,000 
           
Net  increase (decrease) in cash   11,314,063    (336,208)
           
Cash, beginning of period   37,195    339,923 
           
Cash, end of period  $11,351,258   $3,715 
           
SUPPLEMENTAL CASH FLOW INFORMATION:          
Cash paid for interest  $22,180   $2,212 
Cash paid for taxes  $     $   
           
SCHEDULE OF NON-CASH FINANCING ACTIVITIES:          
Deemed dividends - related party  $53,598,320   $17,099,058 
Stock warrants classified as derivative liability  $     $7,530,308 

 

See accompanying notes to unaudited condensed financial statements

 

-3-

 Table of Contents

BioVie Inc.

Condensed Statements of Changes in Stockholders’ (Deficit) Equity

For the periods July 1, 2019 through March 31, 2020 and July 1, 2020 through March 31, 2021

(Unaudited)

                         
   Common Stock   Additional Paid in  Accumulated  Total Stockholders' Equity
   Shares  Amount  Capital  Deficit  (Deficit)
                
Balance, June 30, 2019   4,058,724   $406   $9,392,573   $(7,262,072)  $2,130,907 
                          
Issuance of commitment shares   1,125,000    112    10,068,638          10,068,750 
                          
Deemed dividend for commitment shares   —                  (17,099,058)   (17,099,058)
                          
Net loss for the three months ended September 30, 2019   —                  (3,821,227)   (3,821,227)
                          
Balance, September 30, 2019   5,183,724    518    19,461,211    (28,182,357)   (8,720,628)
                          
Stock option compensation   —            11,162          11,162 
                          
Net income for the three months ended December 31, 2019   —                  6,665,038    6,665,038 
                          
Balance, December 31, 2019   5,183,724   $518   $19,472,373   $(21,517,319)  $(2,044,428)
                          
Stock based compensation   —            13,684          13,684 
                          
Issuance of shares for services   11,200    1    39,199          39,200 
                          
Issuance of shares for interest payment   4,422          13,487          13,487 
                          
Net loss for the three months ended March 31, 2020   —                  (366,402)   (366,402)
                          
Balance, March 31, 2020   5,199,346   $519   $19,538,743   $(21,883,721)  $(2,344,459)
                          
Balance, June 30, 2020   5,204,392   $520   $19,538,742   $(41,037,898)  $(21,498,636)
                          
Net proceeds from issuance of common stock   1,799,980    180    15,627,830          15,628,010 
                          
Redemption of warrants  - related party   1,549,750    155    13,132,230          13,132,385 
                          
Deemed dividend for purchase option - related party   5,359,832    536    53,597,784    (53,598,320)      
                          
Cashless exercise of options   2,210                         
                          
Net income for the three months ended September 30, 2020   —                  7,333,916    7,333,916 
                          
Balance, September 30, 2020   13,916,164    1,391    101,896,586    (87,302,302)   14,595,675 
                          
Stock based compensation   —            1,536,929          1,536,929 
                          
Net loss for the three months ended December 31, 2020   —                  (3,057,807)   (3,057,807)
                          
Balance, December 31, 2020   13,916,164   $1,391   $103,433,515   $(90,360,109)  $13,074,797 
                          
Stock based compensation   —            803,604          803,604 
                          
Cashless exercise of warrants   304                         
                          
Proceeds from exercise of warrants   41,324    4    516,547          516,551 
                          
Net loss for the three months ended March 31, 2021   —                  (2,992,868)   (2,992,868)
                          
Balance, March 31, 2021   13,957,792   $1,395   $104,753,666   $(93,352,977)  $11,402,084 

 

See accompanying notes to unaudited condensed financial statements

 

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 Table of Contents

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

1. Background Information

 

BioVie Inc. (the “Company”) is a clinical-stage company developing innovative drug therapies to treat chronic debilitating conditions including liver disease and neurological and neuro-degenerative disorders and certain cancers. We are currently focused on developing and commercializing BIV201 (continuous infusion terlipressin), a novel approach to the treatment of ascites due to chronic liver cirrhosis. Our therapy BIV201 is based on a drug that is approved in about 40 countries to treat related complications of liver cirrhosis (part of the same disease pathway as ascites), but not yet available in the United States. BIV201’s active agent is a potent vasoconstrictor and has shown efficacy for reducing portal hypertension in studies around the world. The goal is for BIV201 to interrupt the ascites disease pathway, thereby halting the cycle of accelerating fluid generation in ascites patients.

 

BioVie completed a Phase 2a clinical trial of BIV201 in patients with refractory ascites due to advanced liver cirrhosis at the McGuire Research Institute in Richmond, VA in 2019. The Company met with representatives of the Food and Drug Administration (“FDA”) in a Type C Guidance Meeting to discuss the study results and plan our next clinical study. Subsequently we requested a Type B Meeting and submitted an extensive pre-meeting information package. In April 2020, the FDA provided a written response that provided new guidance regarding primary and secondary endpoints, BIV201 dosing levels, quality of life measures and other key aspects of the clinical trial design. After further communications, the Company completed the clinical trial design protocol and was cleared to begin a Phase 2 clinical study. We activated the first trial sites in the first calendar quarter of 2021 and patient screening is now underway. The Phase 2 study results will be used to guide the design of a pivotal Phase 3 clinical trial. We have developed a patent-pending novel liquid formulation of BIV201 for use in this study that is intended to improve convenience for outpatient administration and avoid potential formulation errors that may occur when pharmacists reconstitute the powder version of terlipressin.

 

BIV201 has the potential to improve the health of thousands of patients suffering from life-threatening complications of liver cirrhosis due to hepatitis, nonalcoholic steatohepatitis (NASH), and alcoholism. It has FDA Fast-Track status and Orphan Drug designation for the most common of these complications, ascites, which represents a significant unmet medical need. An Orphan drug that is first-to-market typically receives 7 years of market exclusivity in the United States for the designated use(s). The FDA has never approved any drug specifically for treating ascites. In addition, the Company is applying for global patent coverage of a proprietary liquid formulation of terlipressin for use in the Phase 2 and Phase 3 clinical trials, which has been cleared by the FDA. This could eventually provide up to 20 years of patent protection in countries where the Company seeks patent issuance according to local patent laws.

 

The BIV201 development program began at LAT Pharma LLC. On April 11, 2016, the Company acquired LAT Pharma LLC and the  rights to its BIV201 development program. The Company currently owns all development and marketing rights to its drug candidate. The Company and PharmaIN, Corp. (“PharmaIN”), LAT Pharma’s former partner focused on the development of new modified drug candidates in the same therapeutic field but not including BIV201, had agreed to pay royalties equal to less than 1% of future net sales of each company's ascites drug development programs, or if such program is licensed to a third party, less than 5% of each company's net license revenues. On December 24, 2018, the Company returned its partial ownership rights to the PharmaIN modified terlipressin development program and simultaneously paid the remaining balance due on a related debt. PharmaIN, Corp.’s rights to our program remain unchanged.

 

On April 27, 2021, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with NeurMedix, Inc. (“NeurMedix”) and Acuitas Group Holdings, LLC (“Acuitas”), which are related party affiliates, pursuant to which the Company has agreed to acquire certain assets from NeurMedix and assume certain liabilities of NeurMedix, in exchange for the consideration of cash and shares of common stock. (collectively, the “Transaction”). The acquired assets include, among others, those related to certain drug candidates being developed by NeurMedix, including NE3107, a small molecule orally administered inhibitor of insulin resistance and the pathological inflammatory cascade, with a novel mechanism of action that has potential applications for treatment against Alzheimer’s Disease and Parkinson’s Disease. See Note 9 - Subsequent Events.

 

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 Table of Contents

 BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

2. Liquidity

 

Liquidity and Going Concern

 

The Company’s operations are subject to a number of factors that can affect its operating results and financial conditions. Such factors include, but are not limited to: the results of clinical testing and trial activities of the Company’s products, the Company’s ability to obtain regulatory approval to market its products, competition from products manufactured and sold or being developed by other companies, the price of, and demand for, Company products, the Company’s ability to negotiate favorable licensing or other manufacturing and marketing agreements for its products, and the Company’s ability to raise capital. The Company’s financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of March 31, 2021, the Company had working capital of approximately $10 million and cash of $11.4 million and, stockholders’ equity was approximately $11.4 million, and its accumulated deficit was approximately $93.4 million. In addition, the Company has not generated any revenues and no revenues are expected in the foreseeable future. The Company’s future operations are dependent on the success of the Company’s ongoing development and commercialization effort, as well as continuing to secure additional financing.

The future viability of the Company is largely dependent upon its ability to raise additional capital to finance its operations. Management expects that future sources of funding may include sales of equity, obtaining loans, or other strategic transactions. The emergence of widespread health emergencies or pandemics of the coronavirus ("Covid-19"), may lead to continued regional quarantines, business shutdowns, labor shortages, disruptions to supply chains, and overall economic instability, including the duration and spread of the outbreak and restrictions and the impact of Covid-19 on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s ability to raise funds may be materially adversely affected.

Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient financing on terms acceptable to the Company, if at all, to fund continuing operations. These circumstances raise substantial doubt on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

3. Significant Accounting Policies

 

Basis of Presentation – Interim Financial Information

These unaudited interim condensed financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United State of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. The condensed balance sheet at June 30, 2020 was derived from audited annual financial statements but does not contain all the footnote disclosures from the annual financial statements. These unaudited interim condensed financial statements and information included under the heading: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the Company’s audited financial statements for the fiscal years ended June 30, 2020 and 2019 in our Annual Report on form 10-K filed with Securities Exchange Commission (“SEC”) on August 6, 2020, and as amended by Amendment No. 1 on Form 10-K/A and filed with the SEC on August 7, 2020. For a summary of significant accounting policies, see the Company’s Annual Report on Form 10K for the fiscal year ended June 30, 2020 filed with the SEC on August 6, 2020, and as amended by Amendment No. 1 on Form 10-K/A and filed with the SEC on August 7, 2020.

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 Table of Contents

 BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited) 

 

3. Significant Accounting Policies (continued)

 

Loan Pursuant to Paycheck Protection Program

 

The Company received $62,500 in loan proceeds pursuant to the Paycheck Protection Program (“PPP”), under the Coronavirus Aid Relief and Economic Security (CARES) Act. The PPP Loan is evidenced by a loan application and payment agreement by and between the Company and Lender. The Company applied for the loan in May 2020 and received funding for its maximum amount of $62,500 on May 21, 2020. The term of the loan is for 60 months and matures on the fifth-year anniversary from the date of funding. It bears interest at an annual rate of 1%. The PPP loan is subject to 100% forgiveness. The Company has filed the application for forgiveness, in February 2021 and is pending confirmation of forgiveness by the SBA. There can be no assurance that such forgiveness will occur. The Company is accounting for the loan as debt and if forgiveness is granted the Company will recognize a gain on extinguishment.

   

Net (loss) income per Common Share

 

Basic net (loss) income per common share is computed by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net (loss) income per common share is computed by dividing the net (loss) income attributable to common stockholders by the weighted average number of shares of common stock outstanding and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through stock options, warrants, and convertible debentures. For the nine months ended March 31, 2021 and 2020, all potential securities were anti-dilutive as a result of the effect of the change in fair value of the derivative liability creating a net loss available to common shareholders. For the three months ended March 31, 2021 and 2020, such amounts were excluded from the diluted loss since their effect was considered anti-dilutive due to net loss for the period.

The table below shows the number of outstanding stock options and warrants as of March 31, 2021 and 2020:

   March 31, 2021  March 31, 2020
   Number of Shares  Number of Shares
Stock Options   755,200    68,400 
Warrants   173,021    1,374,667 
Total   928,221    1,443,067 

 

Recent accounting pronouncements

The Company considers the applicability and impact of all Accounting Standard Updates (“ASU’s”). ASU’s not discussed below were assessed and determined to be either not applicable or expected to have minimal impact on our balance sheets or statement of operations.

In August 2018, the FASB issued ASU 2018-13, “Fair value measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. The new guidance modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. This ASU was adopted as of July 1, 2020. There has been no impact to its condensed financial statements and related disclosures.

 

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 Table of Contents

 BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited) 

  

4. Intangible Assets

 

The Company’s intangible assets consist of intellectual property acquired from LAT Pharma, Inc. and are amortized over their estimated useful lives. The following is a summary of the intangible assets as of March 31, 2021 and June 30, 2020:

   March 31, 2021  June 30, 2020
Intellectual Property  $2,293,770   $2,293,770 
Less Accumulated Amortization   (1,140,576)   (968,544)
Intellectual Property, Net  $1,153,194   $1,325,226 

 

Amortization expense for the three-month period ended March 31, 2021 and 2020 was $57,344 and $57,344 respectively. Amortization expense for the nine-month period ended March 31, 2021 and 2020 was $172,032 and $172,032 respectively.

 

Estimated future amortization expense is as follows:

 

   
Year ending June 30, 2021 (Remaining three months)  $                           57,344
2022                             229,377
2023                             229,377
2024                             229,377
2025                             229,377
2026                             178,342
Intellectual Property, Net  $                      1,153,194

 

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 Table of Contents

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

5. Related Party Transactions

 

Equity Transactions with Acuitas

 

On September 22, 2020, concurrent with the closing of the Company’s Offering, approximately $1.8 million was paid to Acuitas satisfying all amounts owed on the Debenture due September 24, 2020 held by the Company’s controlling stockholder, Acuitas.

 

Additionally in connection with the close of the public offering on September 22, 2020, the Company issued an aggregate of 6,909,582 shares of Common Stock to Acuitas, representing (i) 5.4 million shares issuable pursuant to Acuitas’ rights under the Purchase Agreement dated July 3, 2018, as amended on June 24, 2019 and October 9, 2019; and the various extension letters as more fully described below; which resulted in a deemed dividend at the close of the public offering at price of $10 per share, consistent with the Company’s accounting policy; and (ii) the automatic exercise of 1.5 million warrants issued to Acuitas in connection with the Debenture financing at the par value of the Common Stock.

 

During the three months ended September 30, 2020, the Company received additional draws under the Debenture totaling $436,000. The total draws as of September 22, 2020 were $1.7 million and the related total number of warrants issuable at $4.00 per share of common stock was 424,750 of which 328,250 warrants had been issued. In accordance with the Debenture agreements, as more fully described below; at September 22, 2020 upon the Company’s close of its public offering, al1 the warrants issued related to the debenture totaling 1,453,250 were mandatorily redeemed along with the additional 96,500 shares common stock issued to Acuitas.

 

The following paragraphs summarize the background of those financings and arrangements which were settled and redeemed on September 22, 2020.

 

On July 3, 2018, we entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Acuitas and certain other purchasers identified in the Purchase Agreement (together with Acuitas, the “Purchasers”) pursuant to which (i) the Purchasers agreed to purchase an aggregate of 2,133,332 shares of the our Series A Convertible Preferred Stock (the “Preferred Stock”) at a price per share of $1.50 per share of Preferred Stock (the “Initial Sale”) and (ii) we agreed to issue warrants (the “Warrants”) to purchase 1,706,666 shares of common stock, each subject to the terms and conditions set forth in the Purchase Agreement, for an aggregate consideration of $3.2 million. We received $160,000 of the $3.2 million in April and May 2018 as prepaid equity. Acuitas also received an additional 6,667 Warrants in connection with the payoff of a note issued by us in favor of Acuitas. The Initial Sale and issuance of the Warrants occurred on July 3, 2018. In addition, Acuitas had the option to purchase up to an additional 1,600,000 shares of common stock at a price per share of $1.88, and warrants on the same terms as the Warrants, within two weeks following the one year anniversary of the closing of the Initial Sale (the “Subsequent Sale”) in the event that we did not obtain $3,000,000 of funding through various non-dilutive grants prior to the one year anniversary of the closing of the Initial Sale, less any federal or FDA grant funding received by the Company. Acuitas is controlled by our Chairman and Chief Executive Officer, Terren Peizer and the Purchasers included Jonathan Adams, James Lang, Cuong Do and Michael Sherman, who are members of our Board.

 

The Purchase Agreement contained customary representations and warranties. In connection with the disclosure schedule associated with the representations and warranties, we also disclosed customary information, including the following: (i) the existence of the Mallinckrodt petition before the U.S. Patent Trial and Appeal Board, (ii) our capitalization, (iii) our obligation to pay a low single digit royalty on the net sales of BIV201 (continuous infusion terlipressin) to be shared among LAT Pharma LLC members, PharmaIN Corporation and The Barrett Edge, Inc. pursuant to the Agreement and Plan of Merger, dated April 11, 2016, by and between LAT Pharma LLC and us, (iv) our obligation to pay a low single digit royalty on net sales of all terlipressin products covered by specified patents up to a maximum of $200,000 per year pursuant to the Technology Transfer Agreement, dated July 25, 2016, by and between us and the University of Padova (Italy), and (v) certain recent issuances of common stock by us. 

 

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 Table of Contents

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

5. Related Party Transactions (continued)

 

Each share of Preferred Stock automatically converted into 1 share of common stock upon the filing with the Secretary of State of the State of Nevada of a Certificate of Amendment to our Articles of Incorporation (the “Amendment”) on August 13, 2018 that increased the number of authorized shares of common stock to 800,000,000. The Amendment was approved by the written consent of the holders of more than a majority of our issued and outstanding common stock on July 3, 2018 and was filed with the Secretary of State of the State of Nevada 20 calendar days following the distribution of our Definitive Information Statement on Schedule 14 that was filed with the SEC on July 13, 2018.

 

Pursuant to a letter agreement dated June 24, 2019, Acuitas agreed to modify its existing rights under the Purchase Agreement so that:

 

-  

Acuitas agreed to immediately exchange its existing 1,606,667 Warrants for common stock such that it will have effectively exercised its Warrants in full pursuant to a cashless exercise thereof at an assumed current market price of $45.00 per share and, as a result received an aggregate of 95% of the shares covered thereby, or 1,526,094 shares of common stock; 

 

-  

Acuitas agreed to (i) waive its rights to a 50% adjustment of the purchase price of the Preferred Stock in the Initial Sale, the exercise price of the Warrants and the price per share in the Subsequent Sale in the event of certain reductions in the useful life of our current intellectual property rights, and (ii) effectively exercise its rights to purchase securities in a Subsequent Sale pursuant to a “cashless purchase” at an assumed current market price of approximately $11.25 per share, conditioned in each case on the listing of our common stock on Nasdaq or the raising of $2.0 million in additional funds in the form of another securities offering, in either case not later than November 30, 2019, which will result Acuitas having irrevocably waived its rights to an adjustment in the purchase price of the Preferred Stock in the Initial Sale and the exercise price of the Warrants and the purchase price of per share in the Subsequent Sale upon the issuance by us of an aggregate of 1,339,958 shares of common stock (the “Subsequent Sale Shares”) to Acuitas, which is expected to occur concurrently with the closing of our potential public offering and listing on Nasdaq; 

 

-   Acuitas shall in exchange for the foregoing agreements and waivers have the option to purchase additional shares of common stock and warrants to purchase one share of common stock for each share of common stock purchased during the period from September 1, 2019 to November 30, 2019 at the then-effective purchase price of the Preferred Stock in the Initial Sale (the “Funding Option”), provided that any shares issued pursuant to any exercise of the Funding Option will reduce share-for-share the amount of shares issued pursuant to the deemed exercise of its rights to purchase securities in a Subsequent Sale mentioned above.

 

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 Table of Contents

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)  

 

5. Related Party Transactions (continued)

 

Convertible Debenture Transaction with Acuitas

 

On September 24, 2019, the Company entered into a Securities Purchase Agreement (the “2019 Purchase Agreement”) with Acuitas pursuant to which (i) Acuitas agreed to purchase a 10% OID Convertible Delayed Draw Debenture due September 24, 2020 for an aggregate commitment amount of up to $2.0 million, and (ii) the Company issued 1,125,000 shares (the “Commitment Shares”) of the Company’s common stock and warrants (the “Commitment Warrants”) to purchase an equal number of shares, each subject to the terms and conditions set forth in the 2019 Purchase Agreement. The Debenture accrues additional principal at the rate of 6% per annum and interest at the rate of 10% per annum, is convertible into shares of common stock at $4.00 per share prior to the completion of the company’s planned public offering of units (the “Public Offering”) or, subsequent to the closing of the Public Offering, the lower of $4.00 or 80% of the offering price per unit to the public in the Public Offering and are mandatorily redeemable upon such closing at 100% of the accrued principal amount and unpaid interest to the date of redemption. The Commitment Warrants are five-year warrants, exercisable upon the earlier of the effectiveness of the Company’s current reverse stock split or December 1, 2019, at an amount equal to the lower of $4.00 or 80% of the offering price per unit to the public in the Public Offering. Upon entering into the 2019 Purchase Agreement, the Company drew an initial $500,000 under the Debenture and in accordance with the 2019 Purchase Agreement, Acuitas received an additional 125,000 warrants (the “Bridge Warrants”) having the same terms as the Commitment Warrants.

 

Any future draws under the Debenture, which may be made from and after October 15, 2019, November 15, 2019 and December 15, 2019 in equal tranches of $500,000 each, will entitle Acuitas to receive additional Bridge Warrants in equal amount upon such funding. In addition, the 2019 Purchase Agreement provides that, should the underwriters in the Public Offering exercise their option to purchase additional securities during the 45 days following closing and the issuance of such securities would result in Acuitas' beneficial ownership (on a fully diluted basis) of shares of common stock being below 60%, Acuitas shall be issued a number of additional shares of common stock and warrants having the same terms as the Commitment Warrants to result in its beneficial ownership (on a fully diluted basis) of shares of common stock equaling 60%.

 

The issuance of 1,125,000 shares of the Company’s commons stock and warrants to purchase an equal amount number of shares, to its controlling stockholder for the Bridge Financing was accounted for as a deemed dividend due to its related party nature and $17.1 million representing the excess of the fair value of the consideration given for the financing, net of debt discount; was recorded in accumulated deficit for the year ended June 30, 2020, accordingly. A debt discount of $500,000 against the debenture was recorded which will be amortized over the term of the debenture using the effective interest method. The Company recognized amortization of the unearned discount for the three-month period ended March 31, 2021 and 2020 of $0 and $20,307, respectively, and for the nine months period ended March 31, 2021 and 2020 of $21,336 and $41,902, respectively.

 

The Company received draws under the Debenture that totaled approximately $1.3 million during the year ended June 30, 2020. The total interest expense related to the draws under the Debenture was approximately $99,000 for the year ended June 30, 2020. On April 1, 2020, the Company entered an amendment to modify the payment of accrued interest amounts under the original terms of the Debenture to capitalize all such amounts as would otherwise accrue on the Debenture. On January 4, 2020, payment of $13,487 accrued interest due was paid through the issuance of 4,422 shares of the Company’s common stock. Acuitas and the Company continue to discuss the need and timing for some or all the remaining draws under the Debenture Agreement. Subsequent to the initial $500,000 draw on September 24, 2019, the Company received draws that totaled $813,000 as July 13, 2020, and accordingly; the Company issued additional Bridge Warrants to purchase 203,250 shares of common stock to its controlling stockholder under the terms of the Bridge Financing. Accordingly, on April 16, 2020, the Company recorded the warrants to purchase 125,000 common stock related to the second $500,000 draw under the debenture as a derivative warrant liability as of June 30, 2020. The Company recorded the warrants related to the draws totaling $313,000 to purchase 78,250 common shares as derivative liabilities.

 

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 Table of Contents

 BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)  

 

5. Related Party Transactions (continued)

 

Pursuant to the 2019 Purchase Agreement, Acuitas agreed to further modify its existing rights under the Purchase Agreement dated July 3, 2018 with the Company so that Acuitas’ previous agreement in June 2019 to waive its rights to a 50% adjustment of the purchase price of the Preferred Stock in the July 2018 transaction, the exercise price of the warrants in such transaction and the price per share in a Subsequent Sale in the event of certain reductions in the useful life of our current intellectual property rights, and effectively exercise its rights to purchase securities in a Subsequent Sale pursuant to a “cashless purchase” at an assumed current market price of approximately $11.25 per share, conditioned in each case on the listing of the Company’s common stock on Nasdaq or the raising of $2.0 million in additional funds in the form of another securities offering, in either case not later than November 30, 2019, such that Acuitas will have irrevocably waived its rights to an adjustment in the purchase price of the Preferred Stock in the Initial Sale and the exercise price of the Warrants and the purchase price of per share in the Subsequent Sale upon the issuance by us of an aggregate of 2,679,916 shares of common stock and 2,679,916 warrants having the same terms as the Commitment Warrants to Acuitas, upon the closing of the Public Offering.

 

Pursuant to an amendment to the 2019 Purchase Agreement dated October 9, 2019, Acuitas agreed to modify its existing rights under the 2019 Purchase Agreement so that:

 

  - The Commitment Warrants (and related warrants issued upon the first draw under the Debenture) were replaced with warrants having similar terms, but which are automatically exercised upon the closing of the offering at an exercise price equal to the par value of the common stock;

 

  - Acuitas' existing rights under the Purchase Agreement dated July 3, 2018 with the Company were further amended so that the number of Subsequent Sale Shares would be multiplied by four (in lieu of the changes to the Purchase Agreement originally provided for in the 2019 Purchase Agreement); and

 

  - The provisions of the 2019 Purchase Agreement providing that, should the underwriters in the offering exercise their option to purchase additional securities during the 45 days following closing and the issuance of such securities would result in Acuitas’ beneficial ownership (on a fully diluted basis) of shares of common stock being below 60%, Acuitas will be issued a number of additional shares of common stock and warrants having the same terms as the Commitment Warrants to result in its beneficial ownership (on a fully diluted basis) of shares of common stock equaling 60% have been modified such that, upon the exercise of such option by the underwriters, the Company will issue to Acuitas a number of securities that will result in Acuitas’ fully diluted beneficial ownership after the exercise of such option being the same as prior thereto.

 

On July 14, 2020, the Company, entered into a further extension of its letter agreements dated April 8, 2020, that furthered extended its letter agreement dated February 10, 2020 with Acuitas regarding Acuitas’ previous agreement to modify its existing rights under the Purchase Agreement dated July 3, 2018 with the Company so that its June 2019 waiver of its rights to a 50% adjustment of the purchase price applicable to its initial investment in the Company and the exercise price of the warrants received in such transaction and the price per share should it exercise certain rights to purchase additional securities in the event of certain reductions in the useful life of the Company’s intellectual property rights and commitment to purchase such securities upon the closing of the Offering and commitment to purchase such additional securities would remain effective until October 31, 2020, and accordingly Acuitas was entitled to receive an aggregate of 5,359,832 shares of Common Stock at such closing. In addition, the parties agreed that certain draws under the Company’s current bridge financing with Acuitas were to be made based with respect to the Company’s ongoing capital requirements and current market conditions, notwithstanding certain scheduled availability dates set forth in the 10% OID Convertible Delayed Draw Debenture issued in connection therewith. The letter agreement of July 14, 2020 also confirmed the understanding between the Company and Acuitas regarding certain amounts funded to BioVie that were intended as “partial draws” of credit available under the Debenture which, as of July 14, 2020 hereof aggregated $813,000 in aggregate principal amount in additional to amounts initial funded under the Debenture. Accordingly, such “partial draws” accrued additional principal as amounts otherwise funded pursuant to the original schedule of draws included in the Debenture (as modified by the letter agreement between BioVie and Acuitas dated April 1, 2020 regarding the capitalization of interest otherwise payable) and shall entitle Acuitas to receive a pro rata amount of Bridge Warrants.

 

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

  

6. Fair Value Measurements

 

On September 22, 2020, concurrent with the closing of the Offering; the warrants related to derivative liabilities were automatically exercised in full and the convertible Debenture was paid off in cash expiring the conversion option. The fair value of the derivative liabilities - warrants and derivative liability - conversion option on convertible Debenture prior to redemption at September 22, 2020 was $13.1 million, and the change in the fair value of $8.3 million from June 30, 2020 was recorded in the accompanying condensed Statements of Operations. At September 22, 2020, the derivative liabilities, both the warrants and expired conversion option totaling $ 13.1 million were then recorded as additional paid in capital upon automatic exercise of the warrants and payoff of the Debenture.

 

At March 31, 2021 and June 30, 2020, the estimated fair value of derivative liabilities measured on a recurring basis are as follows:

 

    Fair Value Measurements at
March 31, 2021
    Level 1    Level 2    Level 3    Total
                    
Derivative liability - Warrants  $     $     $     $  
Derivative liability -Conversion option on convertible debenture                       
   Total derivatives  $     $     $     $  

 

   Fair Value Measurements at
   June 30, 2020
   Level 1  Level 2  Level 3  Total
             
Derivative liability - Warrants  $     $     $16,411,504   $16,411,504 
Derivative liability -Conversion option on convertible debenture               5,000,800    5,000,800 
   Total derivatives  $     $     $21,412,304   $21,412,304 

 

The following table presents the activity for liabilities measured at fair value using unobservable inputs for the nine months ended March 31, 2021:

  

   Derivative liabilities - Warrants  Derivative liability - Conversion Option on Convertible Debenture
       
Beginning balance at July 1, 2020  $16,411,504   $5,000,800 
Additions to level 3 liabilities            
Change in in fair value of level 3 liability   (6,054,121)   (2,225,798)
Transfer in and/or out of Level 3   (10,357,383)   (2,775,002)
Balance at March 31, 2021  $     $   

 

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

6. Fair Value Measurements (continued)

 

Derivative liability – Warrants

 

The Company accounts for stock purchase warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreements. Under applicable accounting guidance, stock warrants that are precluded from being indexed to the Company’s own stock because of full-rachet anti-dilution provisions or the adjustments to the strike price due to an occurrence of a future event; are accounted for as derivative financial instruments. The stock warrants issued September 24, 2019 were not considered indexed to the Company’s own stock because of the adjustment to strike price, an occurrence of a future event such as the Company’s pending capital raise. 

 

The warrants associated with the level 3 liability were issued on September 24, 2019 and were valued using the Black-Scholes-Merton model. The valuation at June 30, 2020 used the following assumptions: stock price of $14, exercise price of $4.00, term of 5 year expiring April 2025, volatility of 76.61%, dividend yield of 0%, and risk-free interest rate of 0.29%.

 

The valuation at September 22, 2020 of the warrants associated with equity financing prior to their automatic exercise in full used were the following assumptions: stock price of $9.55, exercise price of $4.00, term of 4 year expiring September 2024, volatility of 79.69%, dividend yield of 0%, and risk-free interest rate of 0.21%. (See note 5 “Related Party Transactions”)

 

Derivative liability – Conversion option in convertible debenture

The Company recognized a derivative liability for the conversion option of the $2 million 10% OID Convertible Delayed Draw Debenture; which may be convertible into shares of common stock at $4.00 per share prior to the completion of an offering or, subsequent to the closing of the offering, the lower of $4.00 or 80% of the offering price per unit to the public in such offering and are mandatorily redeemable upon such closing at 100% of the accrued principal amount and unpaid interest to the date of redemption. The valuation at June 30, 2020 used the following assumptions: stock price of $14, conversion price of $4.00, term of 0.25 year expiring September 2020, volatility of 62.47%, dividend yield of 0%, and risk-free interest rate of 0.16%.

 

The valuation at September 22, 2020 used the following assumptions: stock price of $9.55, conversion price of $4.00, term of 0.008 year expiring September 2020, volatility of 45.49%, dividend yield of 0%, and risk-free interest rate of 0.01%.

 

The related Debenture was paid off in cash on September 22, 2020, expiring the conversion option. (See note 5 “Related Party Transactions)

 

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

7. Equity Transactions

 

Stock Options

The following table summarizes the activity relating to the Company’s stock options for the nine months ended March 31, 2021:

 

   Options  Weighted-Average Exercise Price  Weighted Remaining Average Contractual Term  Aggregate Intrinsic Value
Outstanding at June 30, 2020   60,400   $11.06    4.2   $352,600 
Granted   698,000    14.63    4.7    954,239 
Options Exercised or Forfeited   (3,200)   4.76    —         
Outstanding at March 31, 2021   755,200   $13.85    4.4   $1,516,511 
Exercisable at March 31, 2021   236,500   $13.85    4.4   $1,516,511 

 

The fair value of each option grant on the date of grant is estimated using the Black-Scholes option. The pricing model reflected the following weighted-average assumptions for the nine months ended March 31, 2021 and 2020:

 

  March 31, 2021   March 31, 2020
Expected life of options (In years) 5   5
Expected volatility 77.05%   73.74%
Risk free interest rate 0.5%   1.63%
Dividend Yield 0%   0%

 

Expected volatility is based on the historical volatilities of three comparable companies of the daily closing price of their respective common stock and the expected life of options is based on historical data with respect to employee exercise periods. The Company accounts for forfeitures as they are incurred.

The Company recorded stock-based compensation expense of $803,604 and $2,340,533 for the three- and nine- month periods ended March 31, 2021, respectively, and $13,684 and $24,846 for the three- and nine- month periods ended March 31, 2020, respectively.

As of March 31, 2021, unrecognized stock-based compensation cost was $3,721,620 which is expected to be recognized over a weighted-average period of approximately 3 years.

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

7. Equity Transactions (continued)

 

The following is a summary of stock options outstanding and exercisable by exercise price as of March 31, 2021:

 

Exercise Price  Outstanding  Weighted Average Contract Life  Exercisable
$2.80    7,200    3.8    7,200 
$3.75    4,800    2.8    4,800 
$6.25    1,600    2.6    1,600 
$7.50    25,600    4.9    25,600 
$8.75    1,600    3.0    1,600 
$9.54    800    4.5    800 
$9.90    800    4.5    800 
$12.50    4,000    1.8    4,000 
$13.91    691,600    4.7    172,900 
$25.00    1,600    1.5    1,600 
$26.25    4,400    1.1    4,400 
$27.50    800    1.0    800 
$28.75    1,600    1.4    1,600 
$31.25    4,000    0.6    4,000 
$42.09    4,800    4.8    4,800 

 

Stock Warrants

 

The following table summarizes the warrants activity during the nine months ended March 31, 2021:

 

   Number of Shares  Weighted Average Exercise Price  Weighted Average Remaining Life (Years)  Aggregate Intrinsic Value
Outstanding and exercisable at June 30, 2020   1,374,667   $7.72    4.2   $13,799,331 
Granted   293,248   $6.61    5.0   $—   
Expired        $      —     $—   
Exercised   (41,644)  $12.40    4.0   $—   
Exercised - Acuitas   (1,453,250)  $4.00    4.0   $—   
Outstanding and exercisable at March 31, 2020   173,021   $10.49    3.4   $2,203,264 

 

Of the above warrants, 9,391 expire in fiscal year ending June 30, 2022, 4,815 expire in fiscal year ending June 30, 2023, 110,140 expire in fiscal year ending June 30, 2025 and 48,675 expire in fiscal year ending June 30, 2026. 

 

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

7. Equity Transactions (continued)

 

Issuance of common stock through exercise of Stock Options and Warrants

On July 28, 2020, the Company issued 2,210 shares of common stock pursuant to a cashless exercise of stock options to purchase 3,200 shares at an average exercise price of $4.76 per share.

 

On January 27, 2021, the Company issued 304 shares of common stock pursuant to a cashless exercise of warrants to purchase 320 shares at an average exercise price of $1.88 per share.

 

On March 23, 2021, the Company issued 27,000 shares of common stock pursuant to a cash exercise of warrants to purchase 27,000 shares at an average exercise price of $12.50 per share.

 

On March 24, 2021, the Company issued 14,324 shares of common stock pursuant to a cash exercise of warrants to purchase 14,324 shares at an average exercise price of $12.50 per share.

 

Issuance of warrants

On July 13, 2020, the Company issued Warrants to purchase 203,250 shares of common stock to its controlling stockholder under the terms of the Bridge Financing. The warrants were exercisable at an exercise price of $4 at any time from the date of issuance until 5 years from the date of issuance. (See Note 5 Related Party Transactions.)

On September 22, 2020, the Company issued warrants to purchase 89,998 shares of common stock to the underwriters of the Offering in connection with the close of the Offering of registered Common Stock The warrants are exercisable at an exercise price of $12.50 at any time from date of issuance until 5 years from the date of issuance.

Issuance of stock options

On October 1, 2020, the Company issued stock options to purchase 800 shares of common stock to the Chief Financial Officer as part of her compensation. The stock options were issued and are exercisable at an exercise price of $9.54 at any time from date of issuance and expire 5 years from the date of issuance.

 

On October 13, 2020, the Company issued stock options to purchase 800 shares of common stock as part of the annual board of director compensation. The stock options were issued and are exercisable at $9.90 at any time from date of issuance and expire 5 years from the date of issuance.

 

On December 18, 2020, the Company issued stock options to purchase 691,600 shares of common stock as part of the annual board of director compensation. The stock options have a vesting period, where 25% of the stock options vest on the grant date, and the remaining 75% vest over a 3 year period, on the first, second, and third anniversary of the grant date. The stock options were issued and are exercisable at $13.91 at any time from date of issuance and expire 5 years from the date of issuance. The amortization for the quarter ended March 31, 2021 was $679,276. The remaining amortization over the next 5 years is $3,721,610.

 

On January 19, 2021, the Company issued stock option grants to purchase a total of 4,800 shares of common stock, granting 800 shares each to the Chief Operations Officer, the Chief Scientific Officer and to four of its key consultants as part of their annual compensation. The stock options were issued and are exercisable at $42.09 at any time from date of issuance and expire 5 years from the date of issuance.

 

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

8. Commitments and Contingencies 

 

Office Lease 

On July 1, 2019, the Company’s office moved with Acuitas’ new offices to 2120 Colorado Avenue Ste 230, Santa Monica, CA 90404. There is no lease agreement for the new premises and the Company continues to accrue monthly lease payments of $1,000 for the new office under the terms of the previous month-to-month lease for the previous premises which may be cancelled upon 30 days’ written notice.

Challenge to US Patent

On April 30, 2018, we received notice that Mallinckrodt had petitioned the U.S. Patent and Trademark Office (“USPTO”) to institute an Inter Partes Review of our U.S. Patent No. 9,655,945 titled “Treatment of Ascites” (the “’945 patent”). Inter Partes Review is a trial proceeding conducted with the USPTO Patent Trial and Appeal Board (PTAB) to review the patentability of one or more claims of a patent. Such review is limited to grounds of novelty and obviousness on the basis of prior art consisting of patents and printed publications.

 

On November 13, 2019, the Patent Trial and Appeal Board of the United States Patent and Trademark Office (the “Board”) issued a written decision in the inter partes review (“IPR”) action that was brought by Mallinckrodt Pharmaceuticals Ireland Limited (“Mallinckrodt”) against BioVie Inc. (“BioVie” or “Company”). In that action, Mallinckrodt sought to invalidate BioVie’s patent (U.S. Pat. No. 9,655,945, “Treatment of Ascites”) (the “’945 Patent”). In its decision, the Board determined that all claims of the ‘945 Patent were not patentable because they were either anticipated or obvious in light of prior art. The Board also denied BioVie’s Motion to Amend the claims on similar grounds. The result of the Board’s decision is that the ‘945 patent is no longer valid or enforceable. Acuitas Group Holdings, LLC was aware of this patent challenge when it purchased a majority ownership interest in the company in July 2018.

 

This ruling is unrelated to the Company’s Orphan drug designations for ascites and hepatorenal syndrome (“HRS”), which remain unchanged. An Orphan drug that is first-to-market typically receives 7 years of market exclusivity in the United States for the designated use(s). In addition, the ruling does not affect the Company’s rights in its pending patent application directed to proprietary liquid formulations of terlipressin for use in its planned Phase 2 and Phase 3 trials, subject to FDA clearance, which could eventually provide up to 20 years of patent coverage in each country in which the Company seeks patent protection, such as the United States, if a patent issues from a patent application according to the patent laws of each issuing country. 

 

Royalty Agreements

 

Pursuant to the Agreement and Plan of Merger entered into on April 11, 2016 between our predecessor entities, LAT Pharma LLC and NanoAntibiotics, Inc., BioVie is obligated to pay a low single digit royalty on net sales of BIV201 (continuous infusion terlipressin) to be shared among LAT Pharma Members, PharmaIn Corporation, and The Barrett Edge, Inc.

 

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BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2021 and 2020

(unaudited)

 

8. Commitments and Contingencies (continued) 

 

The Company and PharmaIN Corporation, LAT Pharma’s former partner focused on the development of new modified drug candidates in the same therapeutic field but not including BIV201, had agreed to pay royalties equal to less than 1% of future net sales of each company's ascites drug development programs, or if such program is licensed to a third party, less than 5% of each company's net license revenues. On December 24, 2018, the Company returned its partial ownership rights to the PharmaIN modified terlipressin development program and simultaneously paid the remaining balance due on a related debt. PharmaIN, Corp. rights to our program remain unchanged. Additionally, the Company obligation to pay a low single digit royalty on the net sales of BIV201 (continuous infusion terlipressin) to be shared among LAT Pharma LLC members, and The Barrett Edge, Inc. pursuant to the Agreement and Plan of Merger, dated April 11, 2016, by and between LAT Pharma LLC. The Company has an obligation to pay a low single digit royalty on net sales of all terlipressin products covered by specified patents up to a maximum of $200,000 per year pursuant to the Technology Transfer Agreement, dated July 25, 2016, by and between us and the University of Padova (Italy).

 

Pursuant to the Technology Transfer Agreement entered into on July 25, 2016 between BioVie and the University of Padova (Italy), BioVie is obligated to pay a low single digit royalty on net sales of all terlipressin products covered by US patent no. 9,655,645 and any future foreign issuances capped at a maximum of $200,000 per year.

 

9. Subsequent Events 

 

On April 19, 2021, the Company issued 724 shares of common stock pursuant to a cashless exercise of warrants to purchase 760 shares at an average exercise price of $1.88 per share.

 

On April 30, 2021, the Company issued 13,500 shares of common stock pursuant a cash exercise of warrants at $12.50 per share.

 

On April 27, 2021, the Company entered into a Purchase Agreement with NeurMedix, and Acuitas, which are related party affiliates, pursuant to which the Company has agreed to acquire certain assets from NeurMedix and assume certain liabilities of NeurMedix, in exchange for the consideration described below. The acquired assets include, among others, those related to certain drug candidates being developed by NeurMedix, including NE3107, a small molecule orally administered inhibitor of insulin resistance and the pathological inflammatory cascade, with a novel mechanism of action that has potential applications for treatment against Alzheimer’s Disease and Parkinson’s Disease.

 

At the closing of the Transaction, BioVie will issue to NeurMedix 8,361,308 shares of the Company’s common stock and make a cash payment equal to the aggregate amount of NeurMedix’s direct and documented cash expenditures to advance certain clinical programs from March 1, 2021 through the closing, which cash payment is estimated to be approximately $3.0 million. Subject to the terms and conditions of the Purchase Agreement, following the closing, BioVie will also be obligated to deliver contingent consideration to NeurMedix (or its successor) consisting of (i) a cash payment of approximately $7.3 million, subject to a pivotal clinical trial for NE3107 meeting its primary endpoint(s) and BioVie having successfully raised at least $50 million in new capital, and (ii) shares of BioVie’s common stock having an aggregate value of up to $3.0 billion, subject to the achievement of certain clinical, regulatory and commercial milestones related to the drug candidates to be acquired by the Company from NeurMedix, as more fully set forth in the Purchase Agreement.

 

On May 9, 2021, the Company, NeurMedix and Acuitas entered into Amendment No. 1 to the APA (the “Amendment” and the APA as so amended, the “Purchase Agreement”), pursuant to which the parties agreed, among other things, to modify the contingent stock consideration that BioVie may be obligated to deliver to NeurMedix (or its successor) pursuant to the Purchase Agreement. Previously, BioVie was obligated to deliver contingent stock consideration to NeurMedix (or its successor) consisting of shares of BioVie’s common stock having an aggregate value of up to $3.0 billion, subject to the achievement of certain clinical, regulatory and commercial milestones related to the drug candidates to be acquired by BioVie from NeurMedix, and subject to a cap limiting each issuance of shares if such issuance would result in the beneficial ownership of NeurMedix and its affiliates exceeding 89.9999% of BioVie’s issued and outstanding common stock. Pursuant to the Amendment, BioVie will be obligated to deliver contingent stock consideration to NeurMedix (or its successor) consisting of up to 18.0 million shares of BioVie’s common stock, with 4.5 million shares issuable upon the achievement of each of the four milestones set forth in the Purchase Agreement, subject to a cap limiting the issuance of shares if such issuance would result in the beneficial ownership of NeurMedix and its affiliates exceeding 87.5% of BioVie’s issued and outstanding common stock.

 

The Transaction is expected to close twenty calendar days after a related definitive information statement on Schedule 14C is mailed to the Company’s stockholders and is anticipated to close in the second calendar quarter of 2021.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, and Section 27A of the Securities Act of 1933. Any statements contained in this report that are not statements of historical fact may be forward-looking statements. When we use the words “intends,” “estimates,” “predicts,” “potential,” “continues,” “anticipates,” “plans,” “expects,” “believes,” “should,” “could,” “may,” “will” or the negative of these terms or other comparable terminology, we are identifying forward-looking statements. Forward-looking statements involve risks and uncertainties, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. These factors include our; research and development activities, distributor channel; compliance with regulatory impositions; and our capital needs. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. 

Except as may be required by applicable law, we do not undertake or intend to update or revise our forward-looking statements, and we assume no obligation to update any forward-looking statements contained in this report as a result of new information or future events or developments. Thus, you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. You should carefully review and consider the various disclosures we make in this report and our other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks, uncertainties and other factors that may affect our business. 

All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law. When used in this report, the terms “BioVie”, “Company”, “we”, “our”, and “us” refer to BioVie Inc. 

The following discussion of the Company’s financial condition and the results of operations should be read in conjunction with the Financial Statements and Notes thereto appearing elsewhere in this document. 

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that in addition to the description of historical facts contained herein, this report contains certain forward-looking statements that involve risks and uncertainties as detailed herein and from time to time in the Company’s other filings with the Securities and Exchange Commission and elsewhere. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those, described in the forward-looking statements. These factors include, among others: (a) the Company’s fluctuations in sales, expenses and operating results; (b) risks associated with international operations; (c) regulatory, competitive and contractual risks; (d) product development risks; (e) the ability to achieve strategic initiatives, including but not limited to the ability to achieve sales growth across the business segments through a combination of enhanced sales force, new products, and customer service; and (f) pending litigation. 

Management’s Discussion

 

BioVie Inc. is a clinical-stage company pursuing the discovery and development of innovative drug therapies to address severe unmet needs in chronic debilitating diseases. We are currently focused on developing and commercializing BIV201 (continuous infusion terlipressin), a novel approach to the treatment of ascites due to chronic liver cirrhosis. Our therapy BIV201 is based on a drug that is approved in about 40 countries to treat related complications of liver cirrhosis (part of the same disease pathway as ascites), but not yet available in the United States. BIV201’s active agent is a potent vasoconstrictor and has shown efficacy for reducing portal hypertension in studies around the world. The goal is for BIV201 to interrupt the ascites disease pathway, thereby halting the cycle of accelerating fluid generation in ascites patients.

 

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Comparison of the three months ended March 31, 2021 to the three months ended March 31, 2020

 

Net income (loss)

The net loss for the three months ended March 31, 2021 was approximately $3 million as compared to a net loss of $366,000 for the three months ended March 31, 2020. The increase in loss of approximately $2.6 million was primarily due an increase in operating expenses of $2.3 million, a change in fair value of derivative liabilities of approximately $367,000, and a decrease in interest expense of approximately $34,000.

Total operating expenses for the three months ended March 31, 2021 were approximately $3 million as compared to $699,000 for the three months ended March 31, 2020.  The net increase of approximately $2.3 was primarily consisted of increases in research and development expenses of $344,000 and selling, general and administrative expenses of $2 million related to stock-based compensation and due diligence services related to the Company’s purchase of NeurMedix’s assets. (See Note 9 Subsequent events in the accompanying condensed financial statements.)

Research and Development Expenses

Research and development expenses were approximately $697,000 for the three months ended March 31, 2021, a net increase of approximately $344,000, from $353,000 for the three months ended March 31, 2020. Research and development activities increased in preparation and launch of the Phase 2b clinical trials.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were approximately $2.2 million for the three months ended March 31, 2021 compared to $289,000 for the three months ended March 31, 2020. The net increase of approximately $1.9 million was primarily attributed to legal and consulting expenses totaling approximately $1 million for due diligence services in the acquisition of NeurMedix assets, and approximately $804,000 related to stock-based compensation for stock options granted to certain management and the Company’s key consultants and amortization for stock options granted to directors.

Comparison of the nine months ended March 31, 2021 to the nine months ended March 31, 2020

 

Net income (loss)

 

The net income for the nine months ended March 31, 2021 was $1.3 million as compared to a net income of $2.5 million for the nine months ended March 31, 2020. The decrease in net income of $1.2 million was due to a decrease in interest expense of $3 million related to the embedded derivative liability warrants offset by operating expenses increases totaling $4.3 million.

 

Total operating expenses for the nine months ended March 31, 2021 were approximately $6.5 million compared to $2.1 million for the nine months ended March 31, 2020.  The net increase of approximately $4.4 million was primarily consisted of increases in research and development expenses of $757,000 and selling, general and administrative expenses of $3.6 million attributed to stock-based compensation expenses for due diligence related to the purchase of the NeurMedix assets.

Research and Development Expenses

 

Research and development expenses were approximately $1.8 million for the nine months ended March 31, 2021, an increase of $757,000, from $1 million for the nine months ended March 31, 2020. Research and development activities increased in preparation and launch of Phase 2b clinical trials.

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Selling, General and Administrative Expenses

 

Selling, general and administrative expenses were approximately $4.5 million for the nine months ended March 31, 2021, a net increase of approximately $3.6 million, from $941,000 for the nine months ended March 31, 2020. The net increase primarily consisted of stock-based compensation of $2.3 million related to stock options granted to the Board of Directors, management and certain key consultants to the Company and amortization for stock options granted to directors; and legal and consulting expenses totaling approximately $1 million for due diligence services in the acquisition of NeurMedix assets as described below.

 

Capital Resources and Liquidity

 

As of March 31, 2021, the Company had working capital of approximately $10 million and cash of $11.4 million and, stockholders’ equity was approximately $11.4 million, and its accumulated deficit was approximately $93.4 million. In addition, the Company has not generated any revenues and no revenues are expected in the foreseeable future. The Company’s future operations are dependent on the success of the Company’s ongoing development and commercialization effort, as well as continuing to secure additional financing.

 

As described in Note 9 Subsequent Events in the accompany condensed interim financial statements, on April 27, 2021, the Company entered into an Asset Purchase Agreement which was amended by Amendment No. 1 to the Asset Purchase Agreement on May 9, 2021, (collectively “the Amended Asset Purchase Agreement”) with Neurmedix to acquire certain assets from NeurMedix and assume certain liabilities of NeurMedix, in exchange for the consideration of cash and common stock of the Company. At the close of the transaction, the Company will issue 8,361,308 shares of the Company’s common stock and make a cash payment equal to the aggregate amount of NeurMedix’s direct and documented cash expenditures to advance certain clinical programs from March 1, 2021 through the closing, which cash payment is estimated to be approximately $3.0 million. The cash requirements for expenses such as the due diligence, legal fees and the fairness opinion and including the $3 million cash consideration totals approximately $ 7.4 million and will be due at the close of the transaction, currently anticipated in the last quarter of our fiscal year. These expenditures will have a significant impact on the Company’s cash position and the funding of its future operations over the next 12 months, raising substantial doubt about its ability to meet its financial cash flow requirements. Subject to the terms and conditions of the Amended Asset Purchase Agreement following the closing, BioVie will also be obligated to deliver contingent consideration to NeurMedix (or its successor) consisting of (i) a cash payment of approximately $7.3 million, subject to a pivotal clinical trial for NE3107 meeting its primary endpoint(s) and BioVie having successfully raised at least $50 million in new capital, and (ii) contingent stock consideration to NeurMedix (or its successor) consisting of up to 18.0 million shares of BioVie’s common stock, with 4.5 million shares issuable upon the achievement of each of the four milestones set forth in the Purchase Agreement, subject to a cap limiting the issuance of shares if such issuance would result in the beneficial ownership of NeurMedix and its affiliates exceeding 87.5% of BioVie’s issued and outstanding common stock.

 

The future viability of the Company is largely dependent upon its ability to raise additional capital to finance its operations. We cannot assure you that our drug candidate will be developed, work, or receive regulatory approval; that we will ever earn revenues sufficient to support our operations or that we will ever be profitable. Furthermore, since we have no committed source of sufficient financing, we cannot assure that we will be able to raise money as and when we need it to continue our operations. If we cannot raise funds as and when we need them, we may be required to severely curtail, or even to cease, our operations.

 

Management intends to attempt to secure additional required funding primarily through additional equity or debt financings. We may also seek to secure required funding through sales or out-licensing of intellectual property assets, seeking partnerships with other pharmaceutical companies or third parties to co-develop and fund research and development efforts, or similar transactions. However, there can be no assurance that we will be able to obtain required funding. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures in our research protocols. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that could result in our stockholders losing some or all of their investment in us.

 

Although management continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient financing on terms acceptable to the Company, if at all, to fund continuing operations. These circumstances raise substantial doubt on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The emergence of widespread health emergencies or pandemics of the coronavirus ("Covid-19"), may lead to continued regional quarantines, business shutdowns, labor shortages, disruptions to supply chains, and overall economic instability, including the duration and spread of the outbreak and restrictions and the impact of Covid-19 on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s ability to raise funds may be materially adversely affected.

 

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Off-Balance Sheet Arrangements

 

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the Company is a party, under which the Company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets. 

Critical Accounting Policies and Estimates

 

For the nine-month period ended March 31, 2021, there were no significant changes to the Company’s critical accounting policies as identified in the Annual Report Form 10-K for the fiscal year ended June 30, 2020.

New Accounting Pronouncements

 

The Company considered the applicability and impact of recent accounting pronouncements and determined those to be either not applicable or expected to have minimal impact on our balance sheets or statement of operations.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable

 

Item 4.  Controls and Procedures

 

We maintain “disclosure controls and procedures.” Such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Office and Chief Financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Our disclosure controls and procedures have been designed to meet reasonable assurance standards. Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgement in evaluating the cost-benefit relationship of possible disclosure and procedures. The design of and disclosure controls and procedures also are based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q our Chief Executive Officer and Chief Financial Officer have concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15f and 15d-15(f) under the Exchange Act), that occurred during the quarter ended Mach 31, 2021 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

To our knowledge, neither the Company nor any of our officers or directors is a party to any material legal proceeding or litigation and such persons know of no material legal proceeding or contemplated or threatened litigation. There are no judgments against us or our officers or directors. None of our officers or directors has been convicted of a felony or misdemeanor relating to securities or performance in corporate office.

Item 1A. Risk Factors 

Not applicable to smaller reporting companies.

 

Item 2. Unregistered sales of equity securities

 

None

 

Item 3. Defaults Upon Senior Securities

 

None

 

Item 4.  Mine Safety Disclosures

 

None

 

Item 5.  Other Information

 

None 

 

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Item 6. Exhibits

 

(a) Exhibit index

 

Exhibit 
31.1*   Certification of Chief Executive Officer (Principal Executive Officer) required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.
31.2*   Certification of Chief Financial Officer (Principal Financial Officer) required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.
32.1**   Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**   Certification of Chief Financial Officer (Principal Financial Officer) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

101.INS   XBRL Instance Document
     
101.SCH   XBRL Taxonomy Extension Schema Document
     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document
     
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document

 

* Filed herewith.
   
** Furnished herewith. This certification is being furnished solely to accompany this report pursuant to 18 U.S.C. Section 1350, and is not being filed for purposes of Section 18 of the Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filings of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BioVie Inc.,

         
Signature   Titles   Date
     

 

/s/ Cuong V Do

________________

Cuong V Do

  Chairman and Chief Executive Officer (Principal Executive Officer)   May 10, 2021

 

 

 

 

/s/ Joanne Wendy Kim

________________

Joanne Wendy Kim

  Chief Financial Officer (Principal Financial and Accounting Officer)    May 10, 2021

 

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