Quarterly Report (10-q)

0001580149 false Q1 2022 --06-30 0001580149 2022-07-01 2022-09-30 0001580149 2022-11-03 0001580149 2022-09-30 0001580149 2022-06-30 0001580149 2021-07-01 2021-09-30 0001580149 2021-06-30 0001580149 2021-09-30 0001580149 us-gaap:CommonStockMember 2021-06-30 0001580149 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001580149 us-gaap:RetainedEarningsMember 2021-06-30 0001580149 us-gaap:CommonStockMember 2022-06-30 0001580149 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001580149 us-gaap:RetainedEarningsMember 2022-06-30 0001580149 us-gaap:CommonStockMember 2021-07-01 2021-09-30 0001580149 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0001580149 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0001580149 us-gaap:CommonStockMember 2022-07-01 2022-09-30 0001580149 us-gaap:AdditionalPaidInCapitalMember 2022-07-01 2022-09-30 0001580149 us-gaap:RetainedEarningsMember 2022-07-01 2022-09-30 0001580149 us-gaap:CommonStockMember 2021-09-30 0001580149 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0001580149 us-gaap:RetainedEarningsMember 2021-09-30 0001580149 us-gaap:CommonStockMember 2022-09-30 0001580149 us-gaap:AdditionalPaidInCapitalMember 2022-09-30 0001580149 us-gaap:RetainedEarningsMember 2022-09-30 0001580149 us-gaap:StockOptionMember 2022-07-01 2022-09-30 0001580149 us-gaap:StockOptionMember 2021-07-01 2021-09-30 0001580149 us-gaap:WarrantMember 2022-07-01 2022-09-30 0001580149 us-gaap:WarrantMember 2021-07-01 2021-09-30 0001580149 bivi:AcuitasGroupHoldingsLLCMember 2022-08-15 0001580149 us-gaap:PrimeRateMember 2022-07-01 2022-09-30 0001580149 bivi:UnearnedDiscountMember 2022-09-30 0001580149 us-gaap:FinanceReceivablesMember 2022-09-30 0001580149 bivi:LoanAccretionPremiumMember 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember 2022-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel1Member 2022-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel2Member 2022-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2022-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember 2022-09-30 0001580149 us-gaap:FairValueInputsLevel1Member 2022-09-30 0001580149 us-gaap:FairValueInputsLevel2Member 2022-09-30 0001580149 us-gaap:FairValueInputsLevel3Member 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001580149 bivi:DerivativeLiabilityWarrantsMember 2022-06-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember 2022-06-30 0001580149 us-gaap:FairValueInputsLevel1Member 2022-06-30 0001580149 us-gaap:FairValueInputsLevel2Member 2022-06-30 0001580149 us-gaap:FairValueInputsLevel3Member 2022-06-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2022-07-01 2022-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2022-07-01 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2021-06-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-07-01 2021-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2021-07-01 2021-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2022-01-01 2022-09-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2022-01-01 2022-09-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-11-30 0001580149 bivi:DerivativeLiabilityWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-11-01 2021-11-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2021-11-30 0001580149 bivi:DerivativeLiabilityConversionOptionOnConvertibleDebentureMember us-gaap:FairValueInputsLevel3Member 2021-11-01 2021-11-30 0001580149 bivi:StockOptionsMember 2022-06-30 0001580149 bivi:StockOptionsMember 2022-07-01 2022-09-30 0001580149 bivi:StockOptionsMember 2022-09-30 0001580149 bivi:StockOptionsMember 2021-07-01 2021-09-30 0001580149 us-gaap:CommonClassAMember 2021-07-01 2021-09-30 0001580149 us-gaap:CommonClassAMember 2021-09-30 0001580149 us-gaap:CommonClassAMember bivi:SalesAgreementMember 2022-08-31 0001580149 us-gaap:CommonClassAMember bivi:SalesAgreementMember 2022-07-01 2022-09-30 0001580149 us-gaap:RestrictedStockUnitsRSUMember bivi:N2019OmnibusIncentiveEquityPlanMember 2021-08-01 2021-08-20 0001580149 us-gaap:RestrictedStockUnitsRSUMember bivi:N2019OmnibusIncentiveEquityPlanMember bivi:PresidentAndCEOMember 2022-06-01 2022-06-21 0001580149 us-gaap:RestrictedStockUnitsRSUMember 2022-07-01 2022-09-30 0001580149 us-gaap:StockOptionMember bivi:ExecutiveMember 2021-08-01 2021-08-20 0001580149 bivi:StockOption1Member 2022-09-30 0001580149 bivi:StockOption1Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption2Member 2022-09-30 0001580149 bivi:StockOption2Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption3Member 2022-09-30 0001580149 bivi:StockOption3Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption4Member 2022-09-30 0001580149 bivi:StockOption4Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption5Member 2022-09-30 0001580149 bivi:StockOption5Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption6Member 2022-09-30 0001580149 bivi:StockOption6Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption7Member 2022-09-30 0001580149 bivi:StockOption7Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption8Member 2022-09-30 0001580149 bivi:StockOption8Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption9Member 2022-09-30 0001580149 bivi:StockOption9Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption10Member 2022-09-30 0001580149 bivi:StockOption10Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption11Member 2022-09-30 0001580149 bivi:StockOption11Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption12Member 2022-09-30 0001580149 bivi:StockOption12Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption13Member 2022-09-30 0001580149 bivi:StockOption13Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption14Member 2022-09-30 0001580149 bivi:StockOption14Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption15Member 2022-09-30 0001580149 bivi:StockOption15Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption16Member 2022-09-30 0001580149 bivi:StockOption16Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption17Member 2022-09-30 0001580149 bivi:StockOption17Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption18Member 2022-09-30 0001580149 bivi:StockOption18Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption19Member 2022-09-30 0001580149 bivi:StockOption19Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption20Member 2022-09-30 0001580149 bivi:StockOption20Member 2022-07-01 2022-09-30 0001580149 bivi:StockOption21Member 2022-09-30 0001580149 bivi:StockOption21Member 2022-07-01 2022-09-30 0001580149 us-gaap:WarrantMember 2022-06-30 0001580149 us-gaap:WarrantMember 2022-07-01 2022-09-30 0001580149 us-gaap:WarrantMember 2022-09-30 0001580149 us-gaap:SubsequentEventMember us-gaap:CommonClassAMember bivi:SalesAgreementMember 2022-11-01 2022-11-04 0001580149 us-gaap:SubsequentEventMember us-gaap:CommonClassAMember bivi:SalesAgreementMember 2022-11-04 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

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: September 30, 2022

☐	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.)

680 W Nye Lane Suite 204

Carson City, NV 89703

(Address of principal executive offices, Zip Code)

(775) 888-3162

(Registrant’s telephone number, including area code)

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 30,532,830 shares of the Registrant’s $0.0001 par value Class A common stock outstanding as of November 3, 2022.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	1
	Condensed Balance Sheets at September 30, 2022 (unaudited) and June 30, 2022	1
	Condensed Statements of Operations (unaudited) - for the three months ended September 30, 2022 and 2021	2
	Condensed Statements of Cash Flows (unaudited) - for the three months ended September 30, 2022 and 2021	3
	Condensed Statements of Changes in Stockholders’ Equity (unaudited) - for the three months ended September 30, 2022 and September 30, 2021	4
	Notes to Unaudited Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	26

SIGNATURES		27

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, among others; our research and development activities and, distributor channel; compliance with regulatory impositions requirements; 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.

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


	September 30			June 30,
	2022			2022
	(Unaudited)
ASSETS

CURRENT ASSETS:
Cash	$	21,230,918		$	18,641,716
Prepaids and other assets		359,123			137,879
Total current assets		21,590,041			18,779,595

OTHER ASSETS:
Operating lease right-of-use assets		109,271			118,254
Intangible assets, net		809,128			866,472
Goodwill		345,711			345,711
Other assets, non-current		4,562			4,562
Total other assets		1,268,672			1,334,999

TOTAL ASSETS	$	22,858,713		$	20,114,594

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable and accrued expenses	$	2,622,334		$	2,442,804
Current portion of other liabilities		483,854			1,304,925
Current portion of operating lease liabilities		40,317			38,884
Warrant liabilities		442,592			194,531
Embedded derivative liability		506,511			188,030
Total current liabilities		4,095,608			4,169,174

Other liabilities, net of current portion		-			48,385
Operating lease liabilities, net of current portion		76,768			87,414
Note payable net of financing costs and unearned premium and discount ($2,274,586 and $2,861,314 as of September 30, 2022 and June 30, 2022, respectively)		12,725,414			12,138,686

TOTAL LIABILITIES	$	16,897,790			16,443,659

Commitments and contingencies (Note 11)

STOCKHOLDERS’ EQUITY:

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 September 30, 2022 and June 30, 2022, respectively; 30,165,319 and 24,984,083 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively		3,015			2,496
Additional paid in capital		267,343,509			254,638,329
Accumulated deficit		(261,385,601	)		(250,969,890	)
Total stockholders’ equity		5,960,923			3,670,935

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	22,858,713		$	20,114,594

See accompanying notes to unaudited condensed financial statements

-1-

Table of Contents

BioVie Inc.

Condensed Statements of Operations

(Unaudited)


	Three Months Ended			Three Months Ended
	September 30, 2022			September 30, 2021

OPERATING EXPENSES:
Amortization	$	57,344		$	57,344
Research and development expenses		6,769,932			3,094,778
Selling, general and administrative expenses		2,007,062			2,395,162
TOTAL OPERATING EXPENSES		8,834,338			5,547,284

LOSS FROM OPERATIONS		(8,834,338	)		(5,547,284	)

OTHER EXPENSE (INCOME):
Change in fair value of derivative liabilities		566,542			-
Interest expense		1,056,416			1,114
Interest income		(41,585	)		(7,645	)
TOTAL OTHER EXPENSE (INCOME), NET		1,581,373			(6,531	)


NET LOSS	$	(10,415,711	)	$	(5,540,753	)

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(10,415,711	)	$	(5,540,753	)

NET LOSS PER COMMON SHARE
- Basic	$	(0.38	)	$	(0.23	)
- Diluted	$	(0.38	)	$	(0.23	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
- Basic		27,212,445			23,719,927
- Diluted		27,212,445			23,719,927

See accompanying notes to unaudited condensed financial statements

-2-

Table of Contents

BioVie Inc.

Condensed Statements of Cash Flows

(Unaudited)


	Three Months Ended			Three Months Ended
	September 30, 2022			September 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(10,415,711	)	$	(5,540,753	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of intangible assets		57,344			57,344
Stock based compensation - restricted stock		17,537			286,759
Stock based compensation expense - stock options		878,640			1,926,962
Amortization of financing costs		42,554			-
Accretion of unearned loan discount		400,361			-
Accretion of loan premium		143,813			-
Amortization of operating lease right-of-use assets		8,983			-
Change in fair value of derivative liability		566,542			-
Changes in operating assets and liabilities:
Other assets		(221,244	)		(12,436	)
Accounts payable and accrued expenses		179,530			(316,981	)
Operating lease liabilities		(9,213	)		-
Other liabilities		(869,456	)		1,064,479
Net cash used in operating activities		(9,220,320	)		(2,534,626	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock		5,903,682			18,511,009
Net proceeds from issuance of common stock - Related Party		5,905,840			-
Net cash provided by financing activities		11,809,522			18,511,009

Net increase in cash		2,589,202			15,976,383

Cash, beginning of period		18,641,716			4,511,642

Cash, end of period	$	21,230,918		$	20,488,025

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	$	469,687		$	1,114

See accompanying notes to unaudited condensed financial statements

-3-

Table of Contents

BioVie Inc.

Condensed Statements of Changes in Stockholders’ Equity

For the Three Months Ended September 30, 2022 and September 30, 2021

(Unaudited)


	Common Stock		Common Stock		Additional Paid in		Accumulated			Total Stockholders’
	Shares		Amount		Capital		Deficit			Equity

Balance, June 30, 2021		22,333,324	$	2,232	$	229,933,505	$	(224,885,422	)	$	5,050,315

Proceeds from issuance of common stock, net of cost of $2,224,992		2,592,000		259		18,510,750		-			18,511,009

Stock-based compensation - restricted stock		37,049		3		286,756		-			286,759

Stock option based compensation		-		-		1,926,962		-			1,926,962

Net Loss		-		-		-		(5,540,753	)		(5,540,753	)

Balance, September 30, 2021		24,962,373	$	2,494	$	250,657,973	$	(230,426,175	)	$	20,234,292


Balance, June 30, 2022		24,984,083	$	2,496	$	254,638,329	$	(250,969,890	)	$	3,670,935

Stock option based compensation		-		-		878,640		-			878,640

Stock-based compensation - restricted stock		-		-		17,537		-			17,537

Proceeds from issuance of common stock, net of costs of $368,370		1,544,872		155		5,903,527		-			5,903,682

Proceeds from issuance of common stock, net of costs of $94,160 - Related Party		3,636,364		364		5,905,476		-			5,905,840

Net loss		-		-		-		(10,415,711	)		(10,415,711	)

Balance, September 30, 2022		30,165,319	$	3,015	$	267,343,509	$	(261,385,601	)	$	5,960,923

See accompanying notes to unaudited condensed financial statements

-4-

Table of Contents

BIOVIE INC.

Notes to Condensed Financial Statements

For the Three Months Ended September 30, 2022 and 2021

(unaudited)

Background Information

BioVie Inc. (the “Company” or “we” or “our”) is a clinical-stage company developing innovative drug therapies to treat chronic debilitating conditions including neurological and neuro-degenerative disorders and liver disease.

In neurodegenerative disease, BioVie acquired the biopharmaceutical assets of NeurMedix, Inc. (“NeurMedix”), a privately held clinical-stage pharmaceutical company, in June 2021 (See Note 5 Related Party Transactions). The acquired assets included NE3107, a potentially selective inhibitor of inflammatory extracellular single-regulated kinase(“ERK”) signaling that, based on animal studies, is believed to reduce neuroinflammation. NE3107 is a novel orally administered small molecule that is thought to inhibit inflammation-driven insulin resistance and major pathological inflammatory cascades with a novel mechanism of action. There is emerging scientific consensus that both inflammation and insulin resistance may play fundamental roles in the development of Alzheimer’s and Parkinson’s Disease, and NE3107 could, if approved represent an entirely new medical approach to treating these devastating conditions affecting an estimated 6 million Americans suffering from Alzheimer’s and 1 million from Parkinson’s. The FDA has authorized a potentially pivotal Phase 3 randomized, double-blind, placebo-controlled, parallel group, multicenter study to evaluate NE3107 in subjects who have mild to moderate Alzheimer’s disease (NCT04669028). In August 2021, the study was initiated and the Company is anticipating top line results in mid-calendar year 2023.

On January 20, 2022, the Company initiated a study by treating the first patient, in it’s Phase 2 study assessing NE3107’s safety and tolerability and potential pro-motoric impact in Parkinson’s disease patients. The NM201 study (NCT05083260) is a double-blind, placebo-controlled, safety, tolerability, and pharmacokinetics study in Parkinson’s Disease (PD). Participants will be treated with carbidopa/levodopa and NE3107 or placebo. Forty patients with a defined PD medication “off state” will be randomized 1:1 placebo to: active NE3107 20 mg twice daily for 28 days. Safety assessments will look at standard measures of patient health and potential for drug-drug interactions affecting L-dopa pharmacokinetics and activity. Exploratory efficacy assessments will use the Motor Disease Society Unified Parkinson’s Disease Rating (MDS-UPDRS) parts 1-3, ON/OFF Diary, and Non-Motor Symptom Scale. Topline results are expected for the NM201 study in December 2022.

Inflammation-driven insulin resistance is believed to be implicated in a broad range of serious diseases, including multiple myeloma and prostate cancer, and we plan to begin exploring these opportunities in the coming months using NE3107 or related compounds acquired in the NeurMedix asset purchase. NE3107 is patented in the United States, Australia, Canada, Europe and South Korea.

In liver disease, our Orphan Drug candidate BIV201 (continuous infusion terlipressin) is being developed as a future treatment option for patients suffering from ascites and other life-threatening complications of advanced liver cirrhosis caused by NASH, hepatitis, and alcoholism. The initial target for BIV201 therapy is refractory ascites. These patients suffer from frequent life-threatening complications, generate more than $5 billion in annual treatment costs, and have an estimated 50% mortality rate within 6 to 12 months. The US Food and Drug Administration (FDA) has not approved any drug to treat refractory ascites. A Phase 2a clinical trial of BIV201 was completed in 2019, and a multi-center, randomized 30-patient Phase 2b trial is currently underway. Top-line results from this trial are expected in mid-calendar year 2023.

The BIV201 development program was initiated by 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. 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.

-5-

Table of Contents

Liquidity

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 September 30, 2022, the Company had working capital of approximately $17.5 million, cash of approximately $21.2 21,230,918 million, stockholders’ equity of approximately $6.0 5,960,923 million, and an accumulated deficit of approximately $261.4 261,385,601 million. In addition, the Company has not generated any revenues to date 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 efforts, as well as its ability to secure additional financing as needed. Although our cash balance may possibly sustain operations over the next 12 months from the balance sheet date if measures are taken to delay planned expenditures in our research protocols and slow the progress in the Company’s clinical programs, the Company’s current planned operations to meet certain goals and objectives, project cash flows to be depleted within that period of time.

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 duration and spread of the COVID-19 pandemic and the long-term impact of COVID-19 and its variants on the financial markets and the overall economy are highly uncertain and cannot be predicted at this time. 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. In addition, the COVID-19 pandemic has created a widespread labor shortage, including a shortage of medical professionals, and has impacted and may continue to impact the potential patient participation in our studies, which may adversely impact our ability to continue or complete our clinical trials in the planned timeline.

Although management continues to pursue the Company’s strategic 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.

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 and Exchange Commission (the “SEC”) 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 condensed 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, 2022 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 should be read in conjunction with the Company’s audited financial statements for the fiscal years ended June 30, 2022 and 2021 in our Annual Report on Form 10-K filed with the SEC on September 27, 2022. For a summary of significant accounting policies, see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2022 and 2021, filed with the SEC on September 27, 2022.

Certain prior period amounts have been reclassified for consistency with the current period presentation.

-6-

Table of Contents

Net loss per Common Share

Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing the net loss 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 three months ended September 30, 2022 and 2021, such amounts were excluded from the diluted loss since their effect was considered anti-dilutive due to the net loss for the period.

The table below shows the number of outstanding stock options and warrants as of September 30, 2022 and 2021:


	September 30, 2022		September 30, 2021
	Number of Shares		Number of Shares
Stock Options		3,348,330		2,047,910
Warrants		7,779,194		158,761
Total		11,127,524		2,206,671

Recent Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates (“ASU’s”). There were no recent ASUs that are expected to have a material impact on the Company’s balance sheets or statements of operations.

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 September 30, 2022 and June 30, 2022:

Schedule of intangible assets
	September 30, 2022			June 30, 2022

Intellectual Property	$	2,293,770		$	2,293,770
Less Accumulated Amortization		(1,484,642	)		(1,427,298	)
Intellectual Property, Net	$	809,128		$	866,472

Amortization expense was $57,344 in each of the three-month periods ended September 30, 2022 and 2021. The Company amortizes intellectual property over the expected original useful lives of 10 years.

Estimated future amortization expense is as follows:

Schedule of future amortization expense
Year ending June 30, 2023 (Remaining nine months)	$	172,033
2024		229,377
2025		229,377
2026		178,341
	$	809,128

-7-

Table of Contents

Related Party Transactions

Equity Transactions with Acuitas

On July 15, 2022, the Company entered into a securities purchase agreement with Acuitas Group Holdings, LLC, (Acuitas), the company’s majority shareholder, pursuant to which Acuitas agreed to purchase from the Company, in a private placement (i) an aggregate of 3,636,364 shares of the Company’s Class A common stock, par value $0.0001 per share at a price of $1.65 per share (“PIPE Shares”), and (ii) a warrant to purchase 7,272,728 shares of Common Stock (“Warrant Shares”), at an exercise price of $1.82, with a term of exercise of five years; (collectively, the “Securities”). The warrant has a down round feature that reduces the exercise price if the Company sells stock for lower price. On August 15, 2022, the Company received net proceeds of approximately $5.9 million net of costs of approximately $94,000 and entered into an amended and restated registration statement with Acuitas, which amended and restated that certain Registration Rights Agreement, dated as of June 10, 2021, by and between the Company and Acuitas (the “Existing Registration Rights Agreement”), to amend the definition of “Registrable Securities” in the Existing Registration Rights Agreement to include the PIPE Shares and the Warrant Shares as Registrable Securities thereunder.

Asset Acquisition with NeurMedix

On April 27, 2021, the Company entered into an Asset Purchase Agreement (“APA”) with NeurMedix and Acuitas, which are related party affiliates, pursuant to which the Company acquired certain assets from NeurMedix and assumed certain liabilities of NeurMedix, in exchange for consideration of cash and shares of common stock. 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. On June 10, 2021, and pursuant to the APA, the Company issued to Acuitas (as NeurMedix’s assignee) 8,361,308 shares of the Company’s common stock and made a cash payment of approximately $2.3 million. Since the transaction was between entities under common control, there were no fair value adjustments of the purchased assets, and the historical cost basis of the purchased assets was zero. The total consideration paid was expensed as in process research and development expense in the year ended June 30, 2021.

Subject to the terms and conditions of the Asset Purchase Agreement, following the closing, the Company may be obligated to deliver contingent stock consideration to NeurMedix (or its successor). Previously, the Company was obligated to deliver contingent stock consideration to NeurMedix (or its successor) consisting of shares of the Company’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, 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 the Company’s issued and outstanding common stock. Pursuant to Amendment No. 1 to the APA, dated May 9, 2021, the Company may now be obligated to deliver contingent stock consideration to NeurMedix (or its successor) consisting of up to 18 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 APA, 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 the Company’s issued and outstanding common stock.

Other Liabilities

The current portion of other liabilities at September 30, 2022 of $483,854 and $724,330 of the $1.3 1,304,925 million of the current portion of other liabilities at June 30, 2022, represented retention bonus arrangements with certain employees that were recognized in August 2021 totaling $1,161,000. The payment terms of the retention bonus arrangement are equal monthly installments over a 24-month period and began in August 2021.

Notes Payable

On November 30, 2021, (the “Closing Date”) the Company entered into a Loan and Security Agreement and the Supplement to the Loan and Security Agreement and Promissory Notes (together, the “Loan Agreement”) with Avenue Venture Opportunities Fund, L.P. (“AVOPI” and Avenue Venture Opportunities Fund II, L.P. (“AVOPII”) together (“Avenue”) for growth capital loans in an aggregate commitment amount of up to $20 million (the “Loan”). On the closing date, $15 million funded (“Tranche 1”). The Loan had the additional capacity of up to $5 million available to the Company on or prior to September 15, 2022, subject to the Company’s achievement of certain milestones with respect to certain of its ongoing clinical trials which were not achieved. The Loan bears interest at an annual rate equal to the greater of (a) the sum of 7.00% plus the prime rate as reported in The Wall Street Journal and (b) 10.75%. The prime rate at September 30, 2022 was 5.5%. The Loan is secured by a lien upon and security interest in all of the Company’s assets, including intellectual property, subject to agreed exceptions. The maturity date of the Loan is December 1, 2024.

-8-

Table of Contents

The Loan Agreement requires monthly interest-only payments during the first eighteen months of the term of the Loan,. Following the interest-only period, the Company will make equal monthly payments of principal, plus accrued interest, until the Loan’s maturity date when all remaining principal and accrued interest is due. If the Company prepays the Loan, it will be required to pay (a) a prepayment fee in an amount equal to 3.0% of the principal amount of the Loan that is prepaid during the interest-only period; and (b) a prepayment fee in an amount equal to 1.0% of the principal amount of the Loan that is prepaid after the interest-only period. At the Loan’s maturity date, or on the date of the prepayment of the Loan, a final payment equal to 4.25% of the sum of (a) the Loan commitment amount under Tranche 1.

The Loan Agreement includes a conversion option to convert up to $5.0 million of the principal amount of the Loan outstanding at the option of the Lenders, into shares of the Company’s Class A common stock at a conversion price of $6.98 per share.

On the Closing Date, the Company issued to the Lenders warrants to purchase 361,002 shares of Class A common stock of the Company (the “Warrants”) at an exercise price per share equal to $5.82, the stock purchase price. The warrants are exercisable until November 30, 2026, the expiration date.

The amount of the carrying value of the notes payable were determined by allocating portions of the outstanding principal of the notes to the fair value of the warrants of approximately $1.4 million and the fair value of the embedded conversion option of approximately $2.2 million. Accordingly, the total amount of unearned discount of approximately $3.7 million, the total direct financing cost of approximately $390,000 and premium of $850,000 are recognized on an effective interest method over term of the Loan. The adjusted effective interest rate is 25%. The total interest expense of approximately $1.1 million for the three months ended September 30, 2022; was recognized in the accompanying statements of operations and included the interest only payments totaling approximately $470,000, the amortization of financing costs of approximately $43,000, unearned discount of approximately $400,000 and the accretion of loan premium totaled of approximately $144,000. As of September 30, 2022, the outstanding principal balance of $15 million would be paid in 18 monthly equal installments beginning July 1, 2023; a total of $10.0 million and $5.0 million in the fiscal years ended June 30, 2024 and 2025 respectively.

The following is a summary of the Notes Payable as of September 30, 2022 and June 30, 2022:

Schedule of note payable
	September 30, 2022			June 30, 2022

Notes Payable	$	15,000,000		$	15,000,000
Less debt financing costs		(248,236	)		(290,790	)
Less unearned discount		(2,335,441	)		(2,735,802	)
Plus accretion of loan premium		309,091			165,278
Notes Payable, net of financing costs, unearned premiums and discount	$	12,725,414		$	12,138,686

Estimated future amortization expense and accretion of premium is as follows:


	Unearned Discount		Debt Financing Costs		Loan accretion Premium

Year ending June 30, 2023 (Remaining 9 months)	$	1,201,084	$	127,665	$	278,182
2024		1,023,145		108,751		236,970
2025		111,212		11,820		25,757
Total	$	2,335,441	$	248,236	$	540,909

-9-

Table of Contents

8.	Fair Value Measurements

At September 30, 2022 and June 30, 2022, the estimated fair value of derivative liabilities measured on a recurring basis are as follows:


	Fair Value Measurements at
	September 30, 2022
	Level 1		Level 2		Level 3		Total

Derivative liability - Warrants	$	-	$	-	$	442,592	$	442,592
Derivative liability - Conversion option on notes payable		-		-		506,511		506,511
Total derivatives	$	-	$	-	$	949,103	$	949,103

	Fair Value Measurements at
	June 30, 2022
	Level 1		Level 2		Level 3		Total

Derivative liability - Warrants	$	-	$	-	$	194,531	$	194,531
Derivative liability - Conversion option on note payable		-		-		188,030		188,030
Total derivatives	$	-	$	-	$	382,561	$	382,561

The following table presents the activity for liabilities measured at fair value using unobservable inputs for the three months ended September 30, 2022 and 2021:


	Derivative liabilities - Warrants		Derivative liability - Conversion Option on Convertible Debenture

Balance at July 1, 2022	$	194,531	$	188,030
Additions to level 3 liabilities		-		-
Change in in fair value of level 3 liability		248,061		318,481
Transfer in and/or out of Level 3		-		-
Balance at September 30, 2022	$	442,592	$	506,511

-10-

Table of Contents

	Derivative liabilities - Warrants		Derivative liability - Conversion Option on Convertible Debenture

Balance at July 1, 2021	$	-	$	-
Additions to level 3 liabilities		-		-
Change in fair value of level 3 liability		-		-
Transfer in and/or out of Level 3		-		-
Balance at September 30, 2021	$	-	$	-

The fair values of derivative liabilities for the warrants and conversion option at September 30, 2022 in the accompanying balance sheet, were approximately $443,000 and approximately $507,000, respectively. The total change in the fair value of the derivative liabilities totaled approximately $567,000 for the three months ended September 30, 2022, and accordingly, was recorded in the accompanying statement of operations. The assumptions used in the Black Scholes model to value the derivative liabilities at September 30, 2022 included the closing stock price of $2.49 per share, and for the warrants the exercise price of $5.82, 5-year term, risk free rate of 4.06% and volatility of 79.9%. and for the embedded derivative liability of the conversion option, the conversion price of $6.98; 3-year term, risk free rate of 4.3% and volatility of 83.9%.

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 and anti-dilution provisions or adjustments to the strike price due to an occurrence of a future event; are accounted as derivative financial instruments. The warrants issued on November 30, 2021 in connection with the Avenue loan financing were not considered to be indexed to the Company’s own stock, and accordingly, were recorded as a derivative liability at fair value in the accompany balance sheet at September 30, 2022.

The Black Scholes model was used to calculate the fair value of the warrant derivative to bifurcate the warrant derivative amount from the Avenue loan amount funded. The warrants are recorded at their fair values at the date of issuance and remeasured at September 30, 2022. The assumptions used for the fair value calculation at November 30, 2021 follows: the closing stock price of $6.44 per share; the exercise price of $5.82; 5 year term; a risk free rate of 1.14% and volatility of 74.4%.

Embedded derivative liability – Conversion Option

The embedded derivative represents the optional conversion feature of up to $5.0 million of the outstanding Avenue note amounts meets the definition of a derivative and requires bifurcation from the loan amount.

The Black Scholes model was used to calculate the fair value of the embedded derivative to bifurcate the embedded derivative amount representing the conversion option from the Avenue loan amount funded. The assumption used for the fair value calculation at November 30, 2021 follows: the closing stock price of $6.44 per share; the conversion price of $6.98; 3 year term; risk free rate of 0.81% and volatility of 76.85%.

-11-

Table of Contents

9.	Equity Transactions

Stock Options

The following table summarizes the activity relating to the Company’s stock options for the three months ended September 30, 2022:


	Options			Weighed- Average Exercise Price		Weighted Remaining Average Contractual Term		Aggregate Intrinsic Value
Outstanding at June 30, 2022		3,398,764			7.42		6.8		-
Granted		-			-		-		-
Options Expired		(25,600	)		4.71		-		-
Options Canceled		(24,834	)		7.74		-		-
Options Forfeited		-			-		-		-
Outstanding at September 30, 2022		3,348,330		$	7.40		6.4	$	143,136
Exercisable at September 30, 2022		1,113,341		$	9.11		5.6	$	39,440

The fair value of each option grant on the date of grant is estimated using the Black-Scholes option. The pricing model reflects the following weighted-average assumptions for the three months ended September 30, 2021 and no stock options were issued for the three months ended September 30, 2022:

Schedule of assumptions used
	September 30, 2021
Expected life of options (In years)		5
Expected volatility		74.96%
Risk free interest rate		0.80%
Dividend Yield		0%

Expected volatility is based on the historical volatilities of the daily closing price of the common stock of three comparable companies 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 option-based compensation expense of $878,640 and $1,926,962 for three-month periods ended September 30, 2022 and 2021, respectively.

-12-

Table of Contents

The following is a summary of stock options outstanding and exercisable by exercise price as of September 30, 2022:


Exercise Price		Outstanding		Weighted Average Contract Life		Exercisable
$	1.69		124,520		4.8		-
$	1.81		10,000		4.7		-
$	1.98		72,000		4.7		2,000
$	2.74		124,167		9.4		-
$	2.80		7,200		2.4		7,200
$	3.20		248,167		9.4		24,833
$	3.24		25,000		9.5		-
$	3.75		4,800		1.4		4,800
$	5.04		755,000		4.6		188,750
$	6.25		1,600		1.1		1,600
$	7.50		1,600		3.4		1,600
$	7.74		1,341,001		8.3		546,333
$	8.75		1,600		1.5		1,600
$	9.54		800		3.1		800
$	9.90		800		3.1		800
$	12.50		4,000		0.4		4,000
$	13.91		618,475		3.3		321,425
$	25.00		800		0.1		800
$	26.25		2,000		0.1		2,000
$	28.75		800		0.2		800
$	42.09		4,000		3.4		4,000
			3,348,330				1,113,341

Issuance of common stock for cash

During the 3 months ended September 30,2021, the Company issued 2,592,000 of its Class A common stock at $8.00 per share in connection with its registered public offering of approximately $18.5 million, net of issuance costs of approximately $2.2 million.

On August 31, 2022, the Company entered into a Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. and B. Riley Securities, Inc. (collectively, the “Agents”), pursuant to which the Company may issue and sell from time-to-time shares of Company’s Class A common stock, par value $0.0001 per share, through the Agents, subject to the terms and conditions of the Sales Agreement. As of September 30, 2022, the Company has issued 1,544,872 shares under the Sales Agreement for a total net proceeds of $ 5.9 million after commissions and expenses of approximately $400,000.

Issuance of Shares for Services

On August 20, 2021, the Company awarded 58,759 restricted stock units (“RSUs”) to the President and CEO under the Company’s 2019 Omnibus Incentive Equity Plan (the “2019 Omnibus Plan”) as his salary for the period from April 27, 2021, the date of his appointment, through December 31, 2021. The number of RSUs awarded was based on a prorated annual base salary of $600,000 at a 10% discount to the grant date fair value of $7.74 per share of the Company’s common stock. Each RSU awarded to the CEO entitles him to receive one share of common stock upon vesting. A total of 15,339 RSUs (representing the pro rata portion of the RSU award for the period from April 27, 2021 to June 30, 2021) vested at the grant date, 21,710 vested at September 30, 2021 and 21,710 vested at December 31, 2021. Accordingly, the common stock was issued to the CEO at each of the quarter end vesting dates.

On June 21, 2022, the Company awarded 124,520 RSUs to the President and CEO under the Company’s 2019 Omnibus. Each RSU awarded to the CEO entitles him to receive one share of common stock upon vesting. The RSUs vest in equal installments over three years on the anniversary Grant date. The grant date fair value was $1.69 per share of the Company’s common stock. The stock-based compensation expense related to these RSUs totaled $17,537 for the three months ended September 30, 2022.

-13-

Table of Contents

Issuance of Stock Options

On August 20, 2021, the Company granted, under the 2019 Omnibus Plan, stock options to purchase 1,365,835 shares of common stock to the executive management team. Twenty percent (20%) of the shares underlying the options awarded vested on the grant date, and the remaining 80% vest equally over a 5-year period, on the first, second, third, fourth and fifth anniversary of the grant date. The exercise price of the options is $7.74 per share, the grant date fair value of the stock, and the options terminate on the earlier of the tenth anniversary of the grant date or the date as of which the options were fully exercised.

Pursuant to a former employee Separation Agreement, dated April 11, 2022, the Company modified a former employee’s stock option award granted on August 20, 2021 pursuant to the 2019 Omnibus Plan (“2021 Options Grant”). Pursuant to the terms of the Separation Agreement of the employee, effective on July 8, 2022, (“the Separation Date”), the Company accelerated the vesting of options to purchase 74,500 shares of common stock as deemed vested, (“Accelerated Options”) and after giving effect to the Accelerated Options, extended the exercise period of the total vested outstanding and unexercised options totaling 99,333 of the 2021 Options Grant as of July 8, 2022 to one year following the Separation Date. The unvested portion of the 2021 option grant of 24,834 was canceled. The modification were remeasured as of the July 8, 2022 and the incremental difference totaled $181,154, net credit; due to the original exercise price of $7.74 is greater than the stock price of $1.80 on the remeasurement date and accordingly was recognized on July 8, 2022.

Stock Warrants

The following table summarizes warrant activity during the three months ended September 30, 2022:

Summary of warrants activity
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life (Years)		Aggregate Intrinsic Value
Outstanding and exercisable at June 30, 2022		510,372		$	6.17		3.8	$	-
Granted		7,272,728			1.82		4.9		-
Expired		(3,906	)		75.00		-		-
Exercised		-			-		-		-
Outstanding and exercisable at September 30, 2022		7,779,194		$	2.07		4.8	$	4,899,997

Of the above warrants, 909 expire in the fiscal year ending June 30, 2023, 109,380 expire in the fiscal year ending June 30, 2025, 35,175 expire in the fiscal year ending June 30, 2026, and 7,633,730 expire in the fiscal year ending June 30, 2027.

-14-

Table of Contents

10.

Leases

Office Lease

Effective November 1, 2021, the Company relocated its headquarters to Nevada. The Company paid an annual rent of $2,200 for the address at 680 W Nye Lane, Suite 201, Carson City Nevada 897603. The rental agreement is for a one year term.

On February 26, 2022, the Company’s San Diego office relocated to 5090 Shoreham Place, San Diego, CA 92122. The office lease term for 38 months, commenced on March 1, 2022. The monthly base rate of $4,175 begins June 1, 2022, with annual increases of three percent.

The operating lease cost recognized in in our statement of operations was approximately $12,800 and $25,400 for the three months ended September 30, 2022 and 2021, respectively.

The following table provides balance sheet information related to leases as of September 30, 2022 and June 30, 2022:


	September 30, 2022		June 30, 2022
Assets
Operating lease, right-of-use asset, net	$	109,271	$	118,254

Liabilities
Current portion of operating lease liabilities	$	40,317	$	38,884
Operating lease liabilities, net of current portion		76,768		87,414
Total operating lease liabilities	$	117,085	$	126,298

At September 30, 2022, the future estimated minimum lease payments under non-cancelable operating leases are as follows:


Year ending June 30, 2023 (Remaining 9 months)	$	38,075
2024		52,156
2025		44,636
Total minimum lease payments		134,867
Less amount representing interest		(17,782	)
Present value of future minimum lease payments		117,085
Less current portion of operating lease liabilities		(40,317	)
Operating lease liabilities, net of current portion	$	76,768

-15-

Table of Contents

The weighted average remaining lease term and discount rate as of September 30, 2022 and June 30, 2022 were as follows:


	September 30, 2022			June 30, 2022

Weighted average remaining lease term (Years)
Operating leases		2.5			2.8
Weighted average discount rate
Operating leases		10.75	%		10.75	%

11.

Commitments and Contingencies

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.

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.

12.

Employee Benefit Plan

On August 1, 2021, the Company began sponsoring an employee benefit plan subject to Section 401(K) of the Internal Revenue Service Code (the “401K Plan”) pursuant to which, all employees meeting eligibility requirements are able to participate.

Subject to certain limitations in the Internal Revenue Code, eligible employees are permitted to make contributions to the 401K Plan on a pre-tax salary reduction basis and the Company will match 5% of the first 5% of an employee’s contributions to the 401K Plan. For the three months ended September 30, 2022 and 2021, the Company made contributions of approximately $45,479 and $23,613, respectively.

13.

Subsequent Events

On November 4, 2022, the Company issued 367,511 shares of common stock for net proceeds of $1.2 million net of cost of approximately $26,000 under the Controlled Equity Offering Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. and B. Riley Securities, Inc. (collectively, the “Agents”), pursuant to which the Company may issue and sell from time-to-time shares of Company’s Class A common stock, par value $0.0001 per share, through the Agents, subject to the terms and conditions of the Sales Agreement.

-16-

Table of Contents

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 among others, include our; research and development activities and, distributor channel; compliance with regulatory impositions requirements; 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 (the “SEC”) that attempt to advise interested parties of the risks, uncertainties and other factors that may affect our business.

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 report.

Management’s Discussion

BioVie Inc. is a clinical-stage company developing innovative drug therapies to overcome unmet medical needs in chronic debilitating conditions.

In neurodegenerative disease, BioVie acquired the biopharmaceutical assets of NeurMedix, Inc., a related party privately held clinical-stage pharmaceutical company and related party affiliate, in June 2021. The acquired assets include NE3107, a potentially selective inhibitor of inflammatory ERK signaling that, based on animal studies, is believed to reduce neuroinflammation. NE3107 is a novel orally administered small molecule that is thought to inhibit inflammation-driven insulin resistance and major pathological inflammatory cascades with a novel mechanism of action. There is emerging scientific consensus that both inflammation and insulin resistance may play fundamental roles in the development of Alzheimer’s and Parkinson’s Disease, and NE3107 could, if approved, represent an entirely new medical approach to treating these devastating conditions affecting an estimated 6 million Americans suffering from Alzheimer’s and 1 million from Parkinson’s. The FDA has authorized a potentially pivotal Phase 3 randomized, double-blind, placebo-controlled, parallel group, multicenter study to evaluate NE3107 in subjects who have mild to moderate Alzheimer’s disease (NCT04669028). We initiated this trial on August 5, 2021 and are targeting primary completion in mid-calendar year 2023.

On January 20, 2022, the Company initiated a study by treating the first patient, in its Phase 2 study assessing NE3107’s safety and tolerability and potential pro-motoric impact in Parkinson’s disease patients. The NM201 study (NCT05083260) is a double-blind, placebo-controlled, safety, tolerability, and pharmacokinetics study in Parkinson’s Disease (PD). Participants will be treated with carbidopa/levodopa and NE3107 or placebo. Forty patients with a defined PD medication “off state” will be randomized 1:1 placebo to active NE3107 20 mg twice daily for 28 days. Safety assessments will look at standard measures of patient health and potential for drug-drug interactions affecting L-dopa pharmacokinetics and activity. Exploratory efficacy assessments will use the Motor Disease Society Unified Parkinson’s Disease Rating (MDS-UPDRS) parts 1-3, ON/OFF Diary, and Non-Motor Symptom Scale. Topline results are expected for the NM201 study in December 2022.

In liver disease, our Orphan Drug candidate BIV201 (continuous infusion terlipressin) is being developed as a future treatment option for patients suffering from ascites and other life-threatening complications of advanced liver cirrhosis caused by NASH, hepatitis, and alcoholism. The initial target for BIV201 therapy is refractory ascites. These patients suffer from frequent life-threatening complications, generate more than $5 billion in annual treatment costs, and have an estimated 50% mortality rate within 6 to 12 months. The US Food and Drug Administration (FDA) has not approved any drug to treat refractory ascites. A Phase 2a clinical trial of BIV201 was completed in 2019, and a multi-center, randomized 30-patient Phase 2b trial is currently underway. Top-line results from this trial are expected in mid-calendar year 2023.

-17-

Table of Contents

Comparison of the three months ended September 30, 2022 to the three months ended September 30, 2021

Net income (loss)

The net loss for the three months ended September 30, 2022 was approximately $10.4 million as compared $5.5 million for the three months ended September 30, 2021. The increase in net loss of approximately $4.9 million was primarily due to increased losses from operations of $3.3 million from increased activities in our clinical studies, increase in interest expense of $1.1 million from the notes payable financing obtained in November 2021 and a change in fair value of derivative liabilities of approximately $567,000.

Total operating expenses for the three months ended September 30, 2022 were approximately $8.8 million as compared to $5.5 million for the three months ended September 30, 2021. The net increase of approximately $3.3 million during the three months ended September 30, 2022 was primarily due to an increase in research and development expenses of approximately $3.7 million from the increased activities of our clinical studies; offset by decline selling general and administrative expenses of approximately $388,000.

Research and Development Expenses

Research and development expenses were approximately $6.8 million and $3.1 million for the three months ended September 30, 2022 and 2021, respectively. The net increase of approximately $3.7 million, consisted of an increase of approximately $4.1 million primarily attributed to the increased activities in our clinical studies offset by $446,000 from a net decrease in the clinical team’s compensation expense.

The Neuroscience NE3107 studies accounted for approximately $3.9 million of the net increase in research and development expenses as both studies were significantly more active during the three months ended September 30, 2022 over the three months ended September 30, 2021, as the Parkinson’s Phase 2 study initiated in January 2022, became fully enrolled and with the top-line data read expected in December 2022 and the Alzheimer Phase 3 study nears full enrollment. Our Orphan Drug candidates BIV201’s Phase 2b study initiated in June 2021 accounted for approximately $159,000 of the net increase for three months ended September 30, 2022.

The total increase in the clinical studies expenses of $4.1 million was offset by a net decline in clinical team’s total compensation expense of approximately $446,000. The net decline in the clinical team’s compensation consisted of an increase of approximately $1.1 million in the clinical team’s compensation from expansion of the clinical team, offset by $1.6 million representing declines in stock compensation expense of approximately $578,000 from stock options awarded and the retention compensation of $1.0 million accrued in the three months ended September 30, 2021.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were approximately $2.0 million and $2.4 million for the three months ended September 30, 2021 and 2020, respectively. The net decrease of approximately $388,000 was primarily attributed to decline in compensation expense of approximately $641,000, representing a decline stock-based compensation expense of approximately $828,000 representing restricted stock units and stock options awarded to the executive management team in the three months ended September 30, 2021 and increase of approximately $187,000 related to increase in staff from two to four and annual salary increases. The remaining net increase of approximately $239,000 was attributed to increased expenses related to being listed on a national exchange including listing fees and investor relations and advisory $197,000, increase in directors stock compensation of approximately $162,000 stock options awarded and other net increases totaling approximately $54,000 representing insurance and office and website development expenses offset by a decline in other legal and professional fees of approximately $174,000.

Other Income and Expense

Other expense, net was $1.6 million for the three months ended September 30, 2022 compared nearly nil for the three months ended September 30, 2021. Interest expense of $1.1 million recognized during the three months ended September 30, 2022 was attributed to the $15 million debt financing obtained in November 2021 and the change in fair value of the related derivative liabilities recognized for the three months ended September 30, 2022 was approximately $567,000.

-18-

Table of Contents

Capital Resources and Liquidity

As of September 30, 2022, the Company had working capital of approximately $17.5 million, cash of approximately $21.2 million, stockholders’ equity of approximately $6.0 million, and an accumulated deficit of approximately $261.4 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 efforts, as well as its ability to secure additional financing as needed.

-19-

Table of Contents

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 three-month period ended September 30, 2022, 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, 2022.

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 to smaller reporting companies.

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 September 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

-20-

Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

To our knowledge, neither the Company nor any of its 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

Except as described below, there have been no material changes to the Risk Factors previously disclosed in our Form 10-K. The risks described in our Form 10-K and below are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results.

Risks Relating to Our Business and Industry

If the FDA or comparable foreign regulatory authorities approve generic versions of any of our product candidates that receive marketing approval, or such authorities do not grant our products sufficient, or any, periods of exclusivity before approving generic versions of our products, the sales of our products could be adversely affected.

Once a new drug application (“NDA”) is approved, the product covered thereby becomes a “reference listed drug” or RLD, in the FDA’s publication, “Approved Drug Products with Therapeutic Equivalence Evaluations,” commonly known as the Orange Book. Other manufacturers may seek approval of generic versions of reference listed drugs through submission of abbreviated new drug applications (“ANDAs”) in the United States. In support of an ANDA, a generic manufacturer need not conduct clinical trials. Rather, the applicant generally must show that its product has the same active ingredient(s), dosage form, strength, route of administration and conditions of use or labeling as the reference listed drug and that the generic version is bioequivalent to the reference listed drug, meaning it is absorbed in the body at the same rate and to the same extent as the RLD. Generic products may be significantly less costly to bring to market than the reference listed drug and companies that produce generic products are generally able to offer them at lower prices. Moreover, generic versions of RLDs are often automatically substituted for the RLD by pharmacies when dispensing a prescription written for the RLD. Thus, following the introduction of a generic drug, a significant percentage of the sales of any branded product or reference listed drug is typically lost to the generic product.

The FDA may not approve an ANDA for a generic product until any applicable period of non-patent exclusivity for the RLD has expired. The U.S. federal Food, Drug, and Cosmetic Act (“FDCA”) provides a period of five years of non-patent exclusivity for a new drug containing a new chemical entity (“NCE”). An NCE is an active ingredient that has not previously been approved by FDA alone or in combination with other substances. Specifically, in cases where such exclusivity has been granted, an ANDA may not be submitted to the FDA until the expiration of five years unless the submission is accompanied by a Paragraph IV Certification that a patent covering the reference listed drug is either invalid or will not be infringed by the generic product, in which case the applicant may submit its application four years following approval of the reference listed drug. If an ANDA is submitted to FDA with a Paragraph IV Certification, the generic applicant must also provide a Paragraph IV Notification to the holder of the NDA for the RLD and to the owner of the listed patent(s) being challenged by the ANDA applicant, providing a detailed written statement of the basis for the ANDA applicant’s position that the relevant patent(s) is invalid or would not be infringed. If the patent owner brings a patent infringement lawsuit against the ANDA applicant within 45 days of the Paragraph IV Notification, FDA approval of the ANDA will be automatically stayed for 30 months, or until 7-1/2 years after the NDA approval if the generic application was filed between 4 years and 5 years after the NDA approval. Any such stay will be terminated earlier if the court rules that the patent is invalid or would not be infringed.

Competition that our products may face from generic versions of our products could materially and adversely impact our future revenue, profitability and cash flows and substantially limit our ability to obtain a return on the investments we have made in those product candidates.

-21-

Table of Contents

If we fail to obtain or maintain Orphan Drug exclusivity for BIV201, we will have to rely on other potential marketing exclusivity, and on our intellectual property rights, which may reduce the length of time that we can prevent competitors from selling generic versions of BIV201.

We have obtained Orphan Drug Designation for BIV201 (terlipressin) in the U.S. for the treatment of hepatorenal syndrome (received November 21, 2018) and treatment of ascites due to all etiologies except cancer (received September 8, 2016). Under the Orphan Drug Act, the FDA may designate a product as an Orphan Drug if it is a drug intended to treat a rare disease or condition, defined, in part, as a patient population of fewer than 200,000 in the U.S. In the EU, Orphan Drug designation may be granted to drugs intended to treat, diagnose or prevent a life-threatening or chronically debilitating disease having a prevalence of no more than five in 10,000 people in the EU, and which meet other specified criteria. The company that first obtains FDA approval for a designated Orphan Drug for the associated rare disease may receive a seven-year period of marketing exclusivity during which time FDA may not approve another application for the same drug for the same orphan disease or condition. Orphan Drug Exclusivity does not prevent FDA approval of another application for the same drug for a different disease or condition, or of an application for a different drug for the same rare disease or condition. Orphan Drug exclusive marketing rights may be lost under several circumstances, including a later determination by the FDA that the request for designation was materially defective or if the manufacturer is unable to assure sufficient quantity of the drug. Similar regulations are available in the EU with a ten-year period of market exclusivity.

Even though BioVie has obtained two Orphan Drug Designations for its lead product candidate, terlipressin, for treatment of ascites and for treatment of HRS, and may seek other Orphan Drug Designations for BIV201, and Orphan Drug Designation for other product candidates, there is no assurance that BioVie will be the first to obtain marketing approval for any particular rare indication. Further, even though BioVie has obtained Orphan Drug Designations for its lead product candidate, or even if BioVie obtains Orphan Drug Designation for other potential product candidates, such designation may not effectively protect BioVie from competition because different drugs can be approved for the same condition and the same drug can be approved for different conditions and potentially used off-label in the Orphan indication. Even after an Orphan Drug is approved, the FDA can subsequently approve another competing drug with the same active ingredient for the same condition for several reasons, including, if the FDA concludes that the later drug is clinically superior due to being safer or more effective or because it makes a major contribution to patient care. Orphan Drug Designation neither shortens the development time or regulatory review time of a drug, nor gives the drug any advantage in the regulatory review or approval process.

In fact, Mallinckrodt recently received an NDA approval for its terlipressin product for the hepatorenal syndrome (“HRS”) indication in September 2022, which is the same indication for which we had received an Orphan Designation. FDA granted Mallinckrodt and its approved drug a new chemical entity exclusivity. Similarly, if another company with an Orphan Drug designation for the same drug as ours for the same proposed disease or condition receives FDA approval and orphan drug exclusivity before our product is approved, approval of our drug(s) for the orphan indication may be blocked for seven years by the other company’s orphan drug exclusivity and they may obtain a competitive advantage even after the exclusivity period expires associated with being the first to market.

We may face business disruption and related risks if there is another surge ofCOVID-19 or if there is another pandemic caused by other bacteria or viruses, which could have a material adverse effect on our business plan.

Health emergencies or pandemics, whether from COVID-19 or other viruses or bacteria, may lead to regional quarantines, business shutdowns, labor shortages, disruptions to supply chains, and overall economic instability, which could materially and adversely affect the clinical trials, supply chain, financial condition and financial performance of our company. The duration and spread of a pandemic and its long-term impact on the financial markets and the overall economy 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. In addition, such health emergencies or pandemics may create a widespread labor shortage, including a shortage of medical professionals, and may impact potential patient participation in our studies which may adversely impact our ability to continue or complete our clinical trials in the planned timeline.

We can provide no assurance that our product candidates will obtain regulatory approval or that the results of clinical studies will be favorable.

The business plan we have developed through June 2024 for the liver disease program is to complete the Phase 2b clinical development program for our lead new product candidate BIV201 for treatment of ascites, conduct a single pivotal Phase 3 trial of BIV201 for ascites, and to pursue other key milestones such as additional patent issuances. For NE3107, we have commenced a potentially pivotal 18-month Phase 3 trial in Alzheimer’s disease, commenced a Phase 2 study of NE3017 in Parkinson’s disease. Due to our financial constraints, we do not have the resources necessary to complete all of these clinical studies. Subject to FDA guidance, we plan to commence additional Phase 2 and potentially Phase 3 clinical trials upon receipt of a successful capital raise. There is no guarantee the FDA will approve the commencement of a Phase 3 trial for BIV201, and even if it does, our financial constraints may prevent us from undertaking clinical trials.

-22-

Table of Contents

We may be unable to obtain or protect intellectual property rights relating to our product candidates, and we may be liable for infringing upon the intellectual property rights of others, which could have a materially adverse effect on our business.

Our ability to compete effectively will depend on our ability to maintain the proprietary nature of our technologies. We cannot assure investors that we will continue to innovate and file new patent applications, or that if filed any future patent applications will result in granted patents with respect to the technology owned by us or licensed to us. Further, we cannot predict how long it will take for such patents to issue, if at all. The patent position of pharmaceutical or biotechnology companies, including ours, is generally uncertain and involves complex legal and factual considerations and, therefore, validity and enforceability cannot be predicted with certainty. Patents may be challenged, deemed unenforceable, invalidated or circumvented.

BioVie has also filed a PCT (“Patent Cooperation Treaty”) application covering our novel liquid formulations of terlipressin (international patent application PCT/US2020/034269 published as WO2020/237170) and we are seeking patent protection in the United States, Europe, China, Japan and eight other jurisdictions. As of August 22, 2022, we have fifteen (15) issued U.S. patents, one (1) pending U.S. patent application, one (1) pending PCT application and six (6) issued foreign patents directed to protecting NE3107 and related compounds and methods of making and using thereof. However, there can be no assurance that our pending patent applications will result in issued patents, or that any issued patent claims from pending or future patent applications will be sufficiently broad to protect BIV201, NE3107, or any other product candidates or to provide us with competitive advantages.

Any patents we do obtain may be challenged by re-examination or otherwise invalidated or eventually found unenforceable. Both the patent application process and the process of managing patent disputes can be time consuming and expensive. If we were to initiate legal proceedings against a third party to enforce a patent related to one of our products, the defendant in such litigation could counterclaim that our patent is invalid and/or unenforceable. In patent litigation in the U.S., defendant counterclaims alleging invalidity and/or unenforceability are commonplace, as are validity challenges by the defendant against the subject patent or other patents before the United States Patent and Trademark Office (the “USPTO”). Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness or non-enablement, failure to meet the written description requirement, indefiniteness, and/or failure to claim patent eligible subject matter. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent intentionally withheld material information from the USPTO, or made a misleading statement, during prosecution. Additional grounds for an unenforceability assertion include an allegation of misuse or anticompetitive use of patent rights, and an allegation of incorrect inventorship with deceptive intent. Third parties may also raise similar claims before the USPTO even outside the context of litigation. The outcome is unpredictable following legal assertions of invalidity and unenforceability. With respect to the validity question, for example, we cannot be certain that no invalidating prior art existed of which we and the patent examiner were unaware during prosecution. These assertions may also be based on information known to us or the Patent Office. If a defendant or third party were to prevail on a legal assertion of invalidity and/or unenforceability, we would lose at least part, and perhaps all, of the claims of the challenged patent. Such a loss of patent protection would or could have a material adverse impact on our business.

The standards that the United States Patent and Trademark Office (and foreign countries) use to grant patents are not always applied predictably or uniformly and can change. There is also no uniform, worldwide policy regarding the subject matter and scope of claims granted or allowable in pharmaceutical or biotechnology patents. Accordingly, we do not know the degree of future protection for our proprietary rights or the breadth of claims that will be allowed in any patents issued to us or to others.

Further, we rely on a combination of trade secrets, know-how, technology and nondisclosure, and other contractual agreements and technical measures to protect our rights in the technology. If any trade secret, know-how or other technology not protected by a patent were to be disclosed to or independently developed by a competitor, our business and financial condition could be materially adversely affected. The laws of some foreign countries do not protect our proprietary rights to the same extent as the laws of the U.S., and we may encounter significant problems in protecting our proprietary rights in these countries.

We do not believe that either BIV201 or NE3107, the product candidates we are currently developing, infringe upon the rights of any third parties nor are they infringed upon by third parties. However, there can be no assurance that our technology will not be found in the future to infringe upon the rights of others or be infringed upon by others. Moreover, patent applications are in some cases maintained in secrecy until patents are issued. The publication of discoveries in the scientific or patent literature frequently occurs substantially later than the date on which the underlying discoveries were made and patent applications were filed. Because patents can take many years to issue, there may be currently pending applications of which we are unaware that may later result in issued patents that our products or product candidates infringe. For example, pending applications may exist that provide support or can be amended to provide support for a claim that results in an issued patent that our product infringes. In such a case, others may assert infringement claims against us, and should we be found to infringe upon their patents, or otherwise impermissibly utilize their intellectual property, we might be forced to pay damages, potentially including treble damages, if we are found to have willfully infringed on such parties’ patent rights. In addition to any damages we might have to pay, we may be required to obtain licenses from the holders of this intellectual property. We may fail to obtain any of these licenses or intellectual property rights on commercially reasonable terms. Even if we are able to obtain a license, it may be non-exclusive, thereby giving our competitors access to the same technologies licensed to us. In that event, we may be required to expend significant time and resources to develop or license replacement technology. If we are unable to do so, we may be unable to develop or commercialize the affected products, which could materially harm our business and the third parties owning such intellectual property rights could seek either an injunction prohibiting our sales, or, with respect to our sales, an obligation on our part to pay royalties and/or other forms of compensation. Conversely, we may not always be able to successfully pursue our claims against others that infringe upon our technology. Thus, the proprietary nature of our technology or technology licensed by us may not provide adequate protection against competitors.

-23-

Table of Contents

The pharmaceutical industry is characterized by extensive litigation regarding patents and other intellectual property rights. Moreover, the cost to us of any litigation or other proceeding relating to our patents and other intellectual property rights, even if resolved in our favor, could be substantial, and the litigation would divert our management’s efforts. We may not have sufficient resources to bring any such action to a successful conclusion. Uncertainties resulting from the initiation and continuation of any litigation could limit our ability to continue our operations and you could lose all of your investment.

There may be conflicts of interest among our officers, directors and stockholders.

Certain of our executive officers and directors and their affiliates are engaged in other activities and have interests in other entities on their own behalf or on behalf of other persons. Neither we nor any of our stockholders will have any rights in these ventures or their income or profits. In particular, our executive officers or directors or their affiliates may have an economic interest in or other business relationship with partner companies that invest in us or are engaged in competing drug development. Our executive officers or directors may have conflicting fiduciary duties to us and third parties. The terms of transactions with third parties may not be subject to arm’s length negotiations and therefore may be on terms less favorable to us than those that could be procured through arm’s length negotiations.

Risks Relating To Our Common Stock

You may experience future dilution as a result of future equity offerings or if we issue shares subject to options, warrants, stock awards or other arrangements.

In order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock, including under the Controlled Equity Offering Sales Agreement (the “Sales Agreement”), dated as of August 31, 2022, by and among the Company, Cantor Fitzgerald & Co. and B. Riley Securities, Inc. (collectively, the “Agents”), pursuant to which the Company may issue and sell from time to time shares of common stock through the Agents. We may sell shares or other securities in any other offering at a price per share that is less than the current market price of our securities, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. The sale of additional shares of common stock or other securities convertible into or exchangeable for our common stock would dilute all of our stockholders, and if such sales of convertible securities into or exchangeable into our common stock occur at a deemed issuance price that is lower than the current exercise price of our outstanding warrants sold to Acuitas Group Holdings, LLC (“Acuitas”) in August 2022, the exercise price for those warrants would adjust downward to the deemed issuance price pursuant to price adjustment protection contained within those warrants.

In addition, as of November 3, 2022, there were warrants outstanding to purchase an aggregate of 7,778,285 shares of common stock at exercise prices ranging from $1.82 to $12.50 per share and 3,345,530 shares issuable upon exercise of outstanding options at exercise prices ranging from $1.69 to $42.09 per share. Our Loan Agreement entered into on November 30, 2021 contains a conversion feature whereby at the option of lender, up to $5 million of the outstanding loan amount maybe converted to shares of common stock at a conversion price of $6.98 per share. We may grant additional options, warrants or stock awards. To the extent such shares are issued, the interest of holders of our common stock will be diluted.

Moreover, we are obligated to issue shares of common stock upon achievement of certain clinical, regulatory and commercial milestones with respect to certain of our drug candidates (i.e., NE3107, NE3291, NE3413, and NE3789) pursuant to the asset purchase agreement, dated April 27, 2021, by and among the Company, NeurMedix, Inc. and Acuitas, as amended on May 9, 2021 (the “Asset Purchase Agreement”). The achievement of these milestones could result in the issuance of up to 18 million shares of our common stock, further diluting the interest of holders of our common stock.

Certain stockholders who are also officers and directors of the Company may have significant control over our management.

As of November 3, 2022, our directors and executive officers currently own an aggregate shares of our common stock, which currently constitutes 76.7% of our issued and outstanding common stock. As a result, directors and executive officers may have a significant influence on our affairs and management, as well as on all matters requiring member approval, including electing and removing members of our board of directors, causing us to engage in transactions with affiliated entities, causing or restricting our sale or merger, and certain other matters. Our Chairman, Mr. Terren Peizer, may be deemed to beneficially own the shares held by Acuitas. Such concentration of ownership and control could have the effect of delaying, deferring or preventing a change in control of us even when such a change of control would be in the best interests of our stockholders.

-24-

Table of Contents

There is a limited trading market for our common stock, which could make it difficult to liquidate an investment in our common stock, in a timely manner.

Our common stock is currently traded on the Nasdaq Capital Market. Because there is a limited public market for our common stock, investors may not be able to liquidate their investment whenever desired. We cannot assure that there will be an active trading market for our common stock and the lack of an active public trading market could mean that investors may be exposed to increased risk. In addition, if we failed to meet the criteria set forth in SEC regulations, various requirements would be imposed by law on broker dealers who sell our securities to persons other than established customers and accredited investors. Consequently, such regulations may deter broker-dealers from recommending or selling our common stock, which may further affect its liquidity.

We may, in the future, issue additional common stock, which would reduce investors’ percent of ownership and may dilute our share value.

As of November 3, 2022 our Articles of Incorporation, as amended, authorize the issuance of 800,000,000 shares of common stock, and we had 30,532,830 shares of common stock outstanding. Accordingly, we may issue up to an additional 769,467,170 shares of common stock. The future issuance of common stock may result in substantial dilution in the percentage of our common stock held by our then existing stockholders. We may value any common stock in the future on an arbitrary basis. The issuance of common stock for future services or acquisitions or other corporate actions may have the effect of diluting the value of the shares held by our investors, might have an adverse effect on any trading market for our common stock and could impair our ability to raise capital in the future through the sale of equity securities.

Item 2. Unregistered sales of equity securities

Other than equity securities issued in transactions disclosed on our Current Report on Form 8-K/A filed with the SEC on July 18, 2022, there were no unregistered sales of equity securities during the period.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

None

Item 5. Other Information

On August 15, 2022, in connection with the consummation of the Private Placement, the Company entered into an amended and restated registration statement with Acuitas, which amended and restated that certain Registration Rights Agreement, dated as of June 10, 2021, by and between the Company and Acuitas (the “Existing Registration Rights Agreement”), to amend the definition of “Registrable Securities” in the Existing Registration Rights Agreement to include the PIPE Shares and the Warrant Shares as Registrable Securities thereunder.

-25-

Table of Contents

Item 6. Exhibits

(a) Exhibit index

Exhibit

4.1		Form of Common Stock Purchase Warrant (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K/A (File No. 001-39015) filed on July 18, 2022).

10.1		Securities Purchase Agreement, dated July 15, 2022, by and between the Company and Acuitas Group Holdings, LLC (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K/A (File No. 001-39015) filed on July 18, 2022).

10.2*		Amended and Restated Registration Rights Agreement, dated August 15, 2022, by and between BioVie Inc. and Acuitas Group Holdings, LLC.

10.3		Controlled Equity Offering^SM Sales Agreement, dated August 31, 2022, by and among BioVie Inc. Cantor Fitzgerald & Co. and B. Riley Securities, Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-39015) filed on August 31, 2022).

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.

-26-

Table of Contents

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)	November 4, 2022

/s/ Joanne Wendy Kim
Joanne Wendy Kim	Chief Financial Officer (Principal Financial and Accounting Officer)	November 4, 2022

-27-

BioVie (NASDAQ:BIVI)
Historical Stock Chart
From Aug 2024 to Sep 2024

BioVie (NASDAQ:BIVI)
Historical Stock Chart
From Sep 2023 to Sep 2024

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BIVI BioVie Inc

Latest BIVI Messages

Loading Messages....

Biovie Inc. News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

BIVI BioVie Inc

Latest BIVI Messages

Loading Messages....

Biovie Inc. News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App