0001520138-19-000143.txt : 20190510 0001520138-19-000143.hdr.sgml : 20190510 20190510152540 ACCESSION NUMBER: 0001520138-19-000143 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 41 CONFORMED PERIOD OF REPORT: 20190331 FILED AS OF DATE: 20190510 DATE AS OF CHANGE: 20190510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BIOVIE INC. CENTRAL INDEX KEY: 0001580149 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 462510769 STATE OF INCORPORATION: NV FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55292 FILM NUMBER: 19814608 BUSINESS ADDRESS: STREET 1: 11601 WILSHIRE BLVD. STREET 2: SUITE 1100 CITY: LOS ANGELES STATE: CA ZIP: 90025 BUSINESS PHONE: 312-283-5793 MAIL ADDRESS: STREET 1: 11601 WILSHIRE BLVD. STREET 2: SUITE 1100 CITY: LOS ANGELES STATE: CA ZIP: 90025 FORMER COMPANY: FORMER CONFORMED NAME: NANOANTIBIOTICS, INC. DATE OF NAME CHANGE: 20130625 10-Q 1 bivi-20190331_10q.htm FORM 10-Q FOR PERIOD ENDING MARCH 31, 2019
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

Form 10-Q

(Mark One) 

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

For the quarterly period ended: March 31, 2019

 

  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: 000-55292

 

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. Employer Identification No.)

 

11601 Wilshire Blvd Suite 1100
Los Angeles, CA 90025
(Address of principal executive offices, Zip Code)
 
(312)-283-5793
(Registrant's telephone number, including area code)
 
(Former Name, Former Address and Former Fiscal Year if Changed Since Last Report)

   

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 an 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

 

The number of shares outstanding of each of the issuer’s classes of common equity, as of May 10, 2019 was 316,453,673.

 
 
 
 

TABLE OF CONTENTS

 

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements 1
  Condensed Balance Sheets as of March 31, 2019 (unaudited) and June 30, 2018 1
  Condensed Statements of Operations (unaudited) - for the three months and nine months ended March 31, 2019 and 2018 2
 

Condensed Statements of Cash Flows (unaudited) - for the nine months ended March 31, 2019 and 2018

3

  Condensed Statements of Changes in Stockholders’ Equity (unaudited) - for the period from July 1, 2017 through March 31, 2018 and from July 1, 2018 through March 31, 2019 4
  Notes to Unaudited Condensed Financial Statements 5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
Item 3. Quantitative and Qualitative Disclosures About Market Risk 19
Item 4. Controls and Procedures 19

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings 20
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20
Item 3. Defaults Upon Senior Securities 20
Item 4. Mine Safety Disclosures   20
Item 5. Other Information   20
Item 6. Exhibits 21
     
SIGNATURES 22

 

FORWARD-LOOKING STATEMENTS

 

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

 

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

 

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

 

 
 

BioVie Inc.

Condensed Balance Sheets

 

   March 31,  June 30,
   2019  2018*
ASSETS  (Unaudited)   
       
CURRENT ASSETS:      
Cash  $971,614   $45,800 
Other Assets   35,000    —   
Total Current Assets   1,006,614    45,800 
           
OTHER  ASSETS:          
Intangible Assets, Net   1,611,947    1,783,980 
Goodwill   345,711    345,711 
Total Other Assets   1,957,658    2,129,691 
           
TOTAL ASSETS  $2,964,272   $2,175,491 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
CURRENT LIABILITIES:          
Accounts Payable and accrued expenses  $179,054   $884,207 
Accrued Payroll   —      354,167 
Total Current Liabilities   179,054    1,238,374 
           
LONG-TERM LIABILITIES:          
Demand Promissory Note   —      250,000 
Notes Payable, Related Parties   —      575,918 
 Total Long-Term Liabilities   —      825,918 
           
TOTAL LIABILITIES   179,054    2,064,292 
           
Commitments and contingencies (Note 7)          
           
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 and 300,000,000 shares authorized at March 31, 2019 and June 30, 2018, respectively; 316,453,673 and 98,503,199 shares issued and outstanding at March 31, 2019 and June 30, 2018, respectively   31,645    9,850 
Additional paid in capital   9,359,780    4,870,475 
Accumulated deficit   (6,606,207)   (4,769,126)
Total Stockholders' Equity   2,785,218    111,199 
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $2,964,272   $2,175,491 

 

*Derived from audited balance sheet as of June 30, 2018

 

See accompanying notes to unaudited condensed financial statements

 

 -1-

BioVie Inc.

Condensed Statements of Operations

(Unaudited)

 

   Three Months  Three Months  Nine Months  Nine Months
   Ended  Ended  Ended  Ended
   March 31,  March 31,  March 31,  March 31,
   2019  2018  2019  2018
             
REVENUE  $—     $—     $—     $—   
                     
OPERATING EXPENSES:                    
Amortization   57,344    57,344    172,033    172,033 
Research and development expenses   331,834    46,420    732,373    275,116 
Selling, general and administrative expenses   459,111    587,450    936,180    1,401,104 
TOTAL OPERATING EXPENSES   848,289    691,215    1,840,586    1,848,253 
                     
LOSS FROM OPERATIONS   (848,289)   (691,215)   (1,840,586)   (1,848,253)
                     
OTHER EXPENSE (INCOME):                    
Other income   —      —      (51,400)   —   
Interest expense   —      1,342    272    9,828 
Interest income   (248)   —      (1,036)   (1)
TOTAL OTHER EXPENSE (INCOME), NET   (248)   1,342    (52,164)   9,827 
                     
                     
NET LOSS  $(848,041)   (692,557)  $(1,788,422)  $(1,858,080)
                     
Deemed dividend related to ratchet adjustment   —      —      48,659    —   
                     
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS  $(848,041)  $(692,557)  $(1,837,081)  $(1,858,080)
                     
NET LOSS PER SHARE BASIC AND DILUTED  $(0.00)  $(0.01)  $(0.01)  $(0.02)
                     
WEIGHTED AVERAGE NUMBER OF                    
COMMON  SHARES OUTSTANDING BASIC AND DILUTED   316,422,562    96,939,603    313,580,066    95,014,206 

 

See accompanying notes to unaudited condensed financial statements

 

 -2-

BioVie Inc.

Condensed Statements of Cash Flows

(Unaudited)

 

   Nine Months Ended  Nine Months Ended
   March 31, 2019  March 31, 2018
       
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss  $(1,788,422)  $(1,858,080)
Adjustments to reconcile net loss to net cash to cash used in operating activities:          
Common shares issued for service   49,000    —   
Amortization of intangible assets   172,033    172,033 
Stock based compensation expense   63,306    811,203 
Gain on settlement of debt   51,400    —   
Changes in operating assets and liabilities          
Other assets   (35,000)   —   
Accounts payable and accrued expenses   (382,203)   275,283 
Accrued payroll   —      187,500 
Net cash used in operating activities   (1,869,886)   (412,061)
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Repayment of debt   (244,300)   (10,000)
Proceeds from issuance of preferred shares   3,040,000    —   
Proceeds from issuance of common stock and warrants   —      445,001 
Net cash provided by financing activities   2,795,700    435,001 
           
Net increase in cash   925,814    22,940 
           
Cash, beginning of period   45,800    5,140 
           
Cash, end of period  $971,614   $28,080 
           
SUPPLEMENTAL CASH FLOW INFORMATION:          
  Cash paid for interest  $—     $—   
  Cash paid for taxes  $—     $—   
           
SCHEDULE OF NON-CASH FINANCING ACTIVITIES:          
   Conversion of preferred shares to common stock  $3,200,000   $—   
   Settlement of debt by issuance of common stock and forgiveness of debt  $1,150,135   $—   
   Cashless exercise of warrants  $224   $—   
   Deemed dividends for ratchet adjustments to warrants  $48,659   $—   

 

See accompanying notes to unaudited condensed financial statements

 

 -3-

BioVie Inc.

Condensed Statements of Stockholders’ Equity

(Unaudited)

 

   Preferred  Preferred  Common  Common  Additional     Total
   Stock  Stock  Stock  Stock  Paid in  Accumulated  Stockholders'
   Shares  Amount  Shares  Amount  Capital  Deficit  Equity
Balance, June 30, 2017   —     $—      91,925,000   $9,193   $3,483,134   $(2,335,009)  $1,157,318 
                                    
Issuance of shares in a private placement   —      —      1,169,091    117    244,883    —      245,000 
                                    
Issuance of shares for services   —      —      1,500,000    150    329,850    —      330,000 
                                    
Stock option compensation   —      —      —      —      12,752    —      12,752 
                                    
Net loss   —      —      —      —      —      (662,841)   (662,841)
                                    
Balance, September 30, 2017 (Unaudited)   —      —      94,594,091    9,460    4,070,619    (2,997,850)   1,082,229 
                                    
Issuance of shares in a private placement   —      —      227,273    23    49,977    —      50,000 
                                    
Issuance of shares for services   —      —      150,000    15    34,485    —      34,500 
                                    
Issuance of warrants in a private placement   —      —      —      —      100,000    —      100,000 
                                    
Stock option compensation   —      —      —      —      27,021    —      27,021 
                                    
Net loss   —      —      —      —      —      (502,682)   (502,682)
                                    
Balance, December 31, 2017 (Unaudited)   —      —      94,971,364    9,498    4,282,102    (3,500,532)   791,068 
                                    
Issuance of shares in a private placement   —      —      333,333    33    49,967    —      50,000 
                                    
Stock option compensation   —      —      —      —      152,062    —      152,062 
                                    
Issuance of shares for services   —      —      2,030,000    203    242,197    —      242,400 
                                    
Issuance of warrants for services   —      —      —      —      12,469    —      12,469 
                                    
Net loss   —      —      —      —      —      (692,557)   (692,557)
                                    
Balance, March 31, 2018 (Unaudited)   —     $—      97,334,697   $9,734   $4,738,797   $(4,193,089)  $555,442 
                                    
Balance, June 30, 2018   —     $—      98,503,199   $9,850   $4,870,475   $(4,769,126)  $111,199 
                                    
Issuance of preferred stock in a private placement   2,133,332    3,200,000    —      —      3,200,000    —      3,200,000 
                                    
Conversion of preferred stock to common stock   (2,133,332)   (3,200,000)   213,333,200    21,333    (21,333)   —      —   
                                    
Issuance of shares in exchange for debt settlement   —      —      975,361    98    1,150,037    —      1,150,135 
                                    
Stock option compensation   —      —      —      —      3,412    —      3,412 
                                    
Cashless exercise of warrants   —      —      2,241,913    224    (224)   —      —   
                                    
Deemed dividends for ratchet adjustment to warrants   —      —      —      —      48,659    (48,659)   —   
                                    
Net loss   —      —      —      —      —      (439,871)   (439,871)
                                    
Balance, September 30, 2018 (Unaudited)   —      —      315,053,673    31,505    9,251,026    (5,257,656)   4,024,875 
                                    
Stock option compensation   —      —      —      —      16,285    —      16,285 
                                    
Net loss   —      —      —      —      —      (500,510)   (500,510)
                                    
Balance, December 31, 2018 (Unaudited)   —      —      315,053,673    31,505    9,267,310    (5,758,166)   3,540,650 
                                    
Stock option compensation   —      —      —      —      43,609    —      43,609 
                                    
Issuance of shares for services             1,400,000    140    48,860         49,000 
                                    
Net loss   —      —      —      —      —      (848,041)   (848,041)
                                    
Balance, March 31, 2019 (Unaudited)   —     $—      316,453,673   $31,645   $9,359,780   $(6,606,207)  $2,785,218 

 

 

See accompanying notes to unaudited condensed financial statements

 

 -4-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

1. Background Information

 

BioVie Inc. (the “Company”) is a clinical-stage company pursuing the discovery, development, and commercialization of innovative drug therapies. The Company is currently focused on developing and commercializing BIV201 (continuous infusion terlipressin), a novel approach to the treatment of ascites due to chronic liver cirrhosis. The Company began dosing patients with BIV201 in September 2017 at the McGuire Research Institute Inc. in Richmond, VA. All six of the planned patients have been treated with BIV201 therapy in this Phase 2a clinical trial. In May 2019, the Company announced that the primary study objectives to assess the safety, tolerability, and pharmacokinetics (PK) of a continuous infusion of terlipressin over 28 days had been achieved. Detailed results will be presented to the Food & Drug Administration (“FDA”) in the first half of 2019.

 

BIV201 has the potential to improve the health of thousands of patients suffering from life-threatening complications of liver cirrhosis due to hepatitis, nonalcoholic steatohepatitis (NASH), and alcoholism. It has FDA Fast-Track status and Orphan Drug designation for the most common of these complications, ascites, which represents a significant unmet medical need. The FDA has never approved any drug specifically for treating ascites. The Company has secured a US Patent covering the use of BIV201 for the treatment of ascites patients in the outpatient setting using ambulatory pump infusion, and has filed patent applications for its product candidate in Japan, and Europe, Hong Kong, and China. BIV201 also received Orphan Drug designation for hepatorenal syndrome (“HRS”) in November 2018.

 

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

 

The Company’s activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the Company’s business plan.

2. Liquidity and Going Concern

 

The Company’s operations are subject to a number of factors that can affect its operating results and financial conditions. Such factors include, but are not limited to: the results of clinical testing and trial activities of the Company’s products, the Company’s ability to obtain regulatory approval to market its products, competition from products manufactured and sold or being developed by other companies, the price of, and demand for, Company products, the Company’s ability to negotiate favorable licensing or other manufacturing and marketing agreements for its products, and the Company’s ability to raise capital. The Company’s financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has experienced losses since inception and has an accumulated deficit of approximately $6.6 million at March 31, 2019. In addition, the Company has not generated any revenues and no revenues are anticipated 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 continuing to secure additional financing.

 -5-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

2. Liquidity and Going Concern (continued)

 

In July 2018, the Company completed a capital raise from Acuitas Group Holdings, LLC (“Acuitas”) and other purchasers and received net proceeds of $3.2 million and has resumed further clinical development of BIV201. The Acuitas investment agreement also stipulated that if the clinical development of BIV201 continues, Acuitas may at its option invest up to an additional $3 million to fund operations in year two, less any federal or FDA grant funding received by the Company.

 

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

3. Significant Accounting Policies

 

Basis of Presentation – Interim Financial Information

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United State of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. The Condensed Balance Sheet at June 30, 2018 was derived from audited annual financial statements but does not contain all the footnote disclosures from the annual financial statements. The accompanying financial statements and information included under the heading: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with our Company’s audited financial statements and related notes included in our Company’s Form 10-K for the year ended June 30, 2018 filed with the SEC on October 5, 2018.

For a summary of significant accounting policies, see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed with the SEC on October 5, 2018.

Net Loss per Common Share

Basic net loss per common share is computed by dividing the net loss before deemed dividend by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss 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, convertible preferred stock and convertible debentures. Due to the net loss for the period, such amounts were excluded from the diluted loss since their effect was considered anti-dilutive.

 -6-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

3. Significant Accounting Policies (continued)

 

The table below shows the number of outstanding stock options and warrants as of March 31, 2019 and June 30, 2018:

   March 31, 2019  June 30, 2018
   Number of Shares  Number of Shares
Stock Options   7,250,000    5,150,000 
Warrants   216,440,548    4,774,015 
Total   223,690,548    9,924,015 

 

Recent accounting pronouncements

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

In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting”. This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the financial statements.

 -7-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

4. Intellectual Property

 

Intellectual property, stated at cost, less accumulated amortization consists of the following:

 

   March 31, 2019  June 30, 2018
       
Intellectual Property  $2,293,770   $2,293,770 
Accumulated Amortization   681,823    509,790 
Intellectual Property, Net  $1,611,947   $1,783,980 

 

Amortization expense for the three- and nine-month periods ended March 31, 2019 and 2018 was $57,344 and $172,033, respectively. Estimated future amortization expense is as follows:

 

Year ending June 2019 (remaining three months)  $                           57,344
2020                             229,377
2021                             229,377
2022                             229,377
2023                             229,377
Thereafter                             637,095
   $                      1,611,947

 

5. Renegotiated Debt

On July 19, 2018, Geis-Hides Consulting LLC entered into an Accord and Debt Satisfaction Agreement with the Company in which the consulting firm agreed to release the Company from all liabilities arising from the Original Contract and Debt Repayment Plan dated December 15, 2013 totaling $132,000 and received cash of $65,000 and 260,000 common shares in satisfaction. The common shares were valued at the market price on the date of settlement at $0.06 per common share. The gain of $51,400 on the settlement of debt was reflected on the Statements of Operations as “other income” for the nine-month period ended March 31, 2019.

 -8-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

6. Related Party Transactions

On July 9, 2018, Jonathan Adams (COO) entered into an Accord and Debt Satisfaction Agreement with the Company in which he agreed to release the Company from all liabilities including the original contract to defer payment of his accrued salary dated March 23, 2017, the promissory note issued by the Company to defer payment of accrued salary; and subsequent unpaid salary, totaling the amount of $534,722, and received cash of $25,694 in satisfaction. The gain of $509,028 on the settlement of debt was reflected in the additional paid in capital.

On July 9, 2018, Elliot Ehrlich (former CEO and shareholder) entered into an Accord and Debt Satisfaction Agreement with the Company in which he agreed to release the Company from all liabilities including the original contract to defer payment of accrued salary dated March 23, 2017, totaling the amount of $222,028 the promissory note issued by the Company to defer payment of accrued salary; and received cash of $22,273 and 222,028 common shares in satisfaction. The common shares were valued at the market price on the date of settlement at $0.06 per common share. The gain of $186,503 on the settlement of debt was reflected in the additional paid in capital.

On August 8, 2018, Barrett Ehrlich (Independent contractor, related party to Elliot Ehrlich and shareholder) on behalf of The Barrett Edge Inc. (“Barrett”) entered into an Accord and Debt Satisfaction Agreement with the Company in which Barrett agreed to release the Company from all liabilities including the original contract to defer payment of accrued consulting fees dated March 23, 2017, the promissory note issued by the Company to defer payment of accrued consulting fees; loan to the Company for $14,000, and subsequent unpaid consulting fees, totaling $543,014, and received cash of $131,333 and 493,333 common shares in satisfaction. The common shares were valued at the market price on the date of settlement at $0.13 per common share. The gain of $361,548 on the settlement of debt was reflected in the additional paid in capital.

See note 8 for other related party transactions.

7. Commitments and Contingencies 

Office Lease 

On October 1, 2018, the Company executed a lease agreement with Acuitas Group Holdings, LLC (related party) for the Company’s office at 11601 Wilshire Blvd Ste 1100, Los Angeles, CA 90025. The lease is a month-to-month lease that may be cancelled upon 30 days’ written notice and requires monthly payments of $1,000.

Challenge to US Patent

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

 -9-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

7. Commitments and Contingencies (continued)

On August 15, 2018, BioVie submitted a Preliminary Response to the PTAB providing a rationale as to why, in the Company’s opinion, Mallinckrodt’s request to institute the IPR should not be granted. On November 14, 2018, the PTAB granted institution of the IPR challenge after determining that there was a reasonable likelihood of success in proving that at least one of the Company’s 14 claims was unpatentable. On March 7, 2019, we submitted a Patent Owner’s Response and a Patent Owner’s Contingent-Motion to Amend our patent claims, and Declaration of Dr. Jaime Bosch, MD, PhD, our medical expert. We are actively defending the ‘945 patent and may explore the possibility of settlement with Mallinckrodt. However, there can be no assurance in that a favorable outcome will result, or if settlement is reached that the PTAB will accept it. Although the PTAB encourages settlement, in view of public-interest considerations, the board may continue the proceeding to a final written decision even if the parties settle. If the IPR is not terminated due to settlement, the PTAB is statutorily required to issue its final written decision in this case before November 14, 2019. As of March 31, 2019, no adjustments or accruals are reflected as the Company is unable to determine a likely outcome at this time.

Royalty Agreements

Pursuant to the Agreement and Plan of Merger entered into on April 11, 2016 between 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.

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

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.

 -10-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

8. Equity Transactions

Stock Options

The following table summarizes the activity relating to the Company’s stock options for the nine months ended March 31, 2019:

   Options  Weighted-Average Exercise Price  Weighted Remaining Average Contractual Term  Aggregate Intrinsic Value
Outstanding at June 30, 2018   5,150,000   $0.12    5.8   $—   
Granted   2,100,000   $0.04    4.6   $88,370 
Options Exercised or Forfeited   —     $—      —     $—   
Outstanding at March 31, 2019   7,250,000   $0.10    5.3   $166,175 
Exercisable at March 31, 2019   6,250,000   $0.10    5.3   $—   

 

The fair value of each option grant on the date of grant is estimated using the Black-Scholes Option – Pricing model reflecting the following weighted-average assumptions:

   March 31,
   2019  2018
Expected life of options (In years)   5    5 
Expected volatility   69.77%   69.66%
Risk free interest rate   2.60%   1.59%
Dividend Yield   0%   0%

 

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

The Company recorded stock-based compensation expense of $43,609 and $63,306 for the three-and nine-month periods ended March 31, 2019, respectively, and $152,062 and $191,835 for the three-and nine-month periods ended March 31, 2018, respectively.

 -11-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

8. Equity Transactions (continued)

The fair value of options vested during the nine-month period ended March 31, 2019 and 2018, was $10,235 and $25,281 respectively.

As of March 31, 2019, there was approximately $1,555 of unrecognized compensation cost related to non-vested options granted which is expected to be recognized over a weighted-average period of 1 months.

The following is a summary of stock options outstanding and exercisable by exercise price as of March 31, 2019:

      Weighted Average    
Exercise Price  Outstanding  Contract Life  Exercisable
$0.03    700,000    4.8    700,000 
$0.05    1,300,000    4.6    1,300,000 
$0.06    3,100,000    6.9    2,100,000 
$0.07    100,000    4.5    100,000 
$0.10    500,000    3.8    500,000 
$0.20    200,000    3.5    200,000 
$0.21    550,000    3.1    550,000 
$0.22    100,000    3.0    100,000 
$0.23    200,000    3.4    200,000 
$0.25    500,000    2.6    500,000 
 Total    7,250,000         6,250,000 

 

Offerings of Common Stock and Warrants

Issuance of Shares for Cash

On July 3, 2018, BioVie Inc., the Company, entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Acuitas Group Holdings, LLC (“Acuitas”) and certain other purchasers identified in the Purchase Agreement (together with Acuitas, the “Purchasers”) pursuant to which (i) the Purchasers agreed to purchase an aggregate of 2,133,332 shares of the Company’s newly created Series A Convertible Preferred Stock (the “Preferred Stock”) at a price per share of $1.50 per share of Preferred Stock (the “Initial Sale”) and (ii) the Company will issue associated warrants (the “Warrants”) to purchase 213,333,200 shares of the Company’s Class A Common Stock (the “Common Stock”), each subject to the terms and conditions set forth in the Purchase Agreement, for an aggregate consideration of $3.2 million. The Company received $160,000 of the $3.2 million in April and May 2018 as prepaid equity. Acuitas also received an additional 833,333 Warrants in connection with the payoff of a note issued by the Company in favor of Acuitas. The Initial Sale and issuance of the Warrants occurred on July 3, 2018. In addition, Acuitas has the option to purchase up to an additional 200,000,000 shares of Common Stock at a price per share of $0.015, and associated warrants on the same terms as the Warrants, within two weeks following the one year anniversary of the closing of the Initial Sale (the “Subsequent Sale”) in the event that the Company has not obtained $3,000,000 of funding through various non-dilutive grants prior to the one year anniversary of the closing of the Initial Sale.

 -12-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

8. Equity Transactions (continued)

Each share of Preferred Stock automatically converted into 100 shares of Common Stock upon the filing with the Secretary of State of the State of Nevada of a Certificate of Amendment to the Company’s Articles of Incorporation (the “Amendment”) on August 13, 2018 that increased the number of authorized shares of Common Stock to 800,000,000. The Amendment was approved by the written consent of the holders of more than a majority of the Company’s issued and outstanding Common Stock on July 3, 2018 and was filed with the Secretary of State of the State of Nevada 20 calendar days following the distribution of the Company’s Definitive Information that was filed with the Securities and Exchange Commission.

The purchase price of the Preferred Stock in the Initial Sale, the exercise price of the Warrants, and the Common Stock in the Subsequent Sale is subject to adjustment. In the event that Mallinckrodt Pharmaceuticals Ireland Limited prevails in any proceeding which results in the useful life of the Company’s current intellectual property rights being reduced by more than 75 percent, then the price per share of Common Stock, the associated conversion ratio of the Preferred Stock, and the exercise price of the Warrants shall be retroactively adjusted to 50 percent of the then-effective price per share of Common Stock under the Purchase Agreement (for example, if the then-effective price per share of Common Stock is $0.015, then following such event, the price per share will be $0.0075). In this case, the Company may be required to issue additional shares of Common Stock, but in no event will the Company be required to pay cash, to reflect such lower price per share.

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

Pursuant to the Purchase Agreement, Terren Peizer, the Chairman of Acuitas, was appointed as a member of the Company’s Board of Directors (the “Board”) and as the Chief Executive Officer of the Company, effective July 3, 2018. The issuance of the Preferred Stock, the Warrants and the underlying common stock under the Purchase Agreement is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act.

 -13-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

8. Equity Transactions (continued)

Issuance of Shares for Services

On January 2, 2019, the Company issued 1,400,000 shares of common stock as part of the annual board of director compensation. The share price on date of issuance was $0.035 per share.

Issuance of Shares in Settlement of Debt

During the nine months ended March 31, 2019, the Company settled $1,475,765 of debt including $1,313,765 owed to related parties, by issuing 975,361 shares of common stock with a fair value of $1,150,135. See notes 5 and 6.

Issuance of Stock Options

On October 1, 2018, the Company issued stock options to purchase 100,000 shares of common stock to the Chief Financial Officer as part of her compensation. The stock options were issued and are exercisable at an exercise price of $0.07 at any time from date of issuance and expire in 5 years from the date of issuance.

On October 13, 2018, the Company issued stock options to purchase 100,000 shares of common stock as part of their annual board of director compensation. The stock options were issued and are exercisable at $0.05 at any time from date of issuance and expire in 5 years from the date of issuance.

On October 27, 2018, the Company issued stock options to purchase 100,000 shares of common stock as part of their annual board of director compensation. The stock options were issued and are exercisable at $0.05 at any time from date of issuance and expire in 5 years from the date of issuance

On November 10, 2018, the Company issued stock options to purchase 100,000 shares of common stock as part of their annual board of director compensation. The stock options are exercisable at an exercise price of $0.05 at any time from date of issuance and expire in 5 years from the date of issuance.

On January 19, 2019, the Company issued stock options to purchase 100,000 shares of common stock to each of five key employees or consultants and two company directors as part of his or her annual compensation, for an aggregate total of 700,000 stock options. The stock options are exercisable at an exercise price of $0.025 at any time from date of issuance until 5 years from the date of issuance.

On March 11, 2019, the Company issued stock options to purchase 1,000,000 shares of common stock to an investor relations (IR) consultant. The stock options were issued and are exercisable at $0.05 at any time from date of issuance and expire in 5 years from the date of issuance.

Cashless exercise of warrant

On August 4, 2018, the Company issued 2,241,913 shares of common stock pursuant to a cash less exercise of warrants to purchase 2,500,000 shares at an exercise price of $0.015 per share. As a result of the conversion of the Series A Preferred Stock in July 2018, the exercise of warrants to purchase 2,500,000 shares of common stock was reduced from $0.15 per share to $0.015 per share.

 -14-

BIOVIE INC.

Notes to Condensed Financial Statements

For the Nine Months Ended March 31, 2019 and 2018

(unaudited)

 

8. Equity Transactions (continued)

Warrant Price Adjustment

In December 2017, the Company issued warrants to purchase 2,500,000 shares of common stock in a private placement transaction for aggregate gross proceeds of $100,000. The warrants were exercisable at an exercise price of $0.20 at any time from date of issuance until 7 years from the date of issuance. The warrants have a down round feature that reduces the exercise price if the Company sells stock for a lower price. In January 2018, the Company sold shares at $0.15, which therefore triggered the reduction in the strike price. The Company calculated the difference in fair value of the warrants between the stated exercise price and the reduced exercise price and recorded $20,995 as a deemed dividend. In July 2018, the Company sold shares at $0.015, which therefore triggered the reduction in the strike price. The Company calculated the difference in fair value of the warrants between the stated exercise price and the reduced exercise price and recorded $44,889 as a deemed dividend. The fair value of the warrants granted was estimated using the Black Scholes Method.

In January 2018, the Company issued warrants to purchase 210,000 shares of common stock in exchange for banking services which was recognized at fair value. The warrants were exercisable at an exercise price of $0.15 at any time from date of issuance until 7 years from the date of issuance. The warrants have a down round feature that reduces the exercise price if the Company sells stock for a lower price. In July 2018, the Company sold shares at $0.015, which therefore triggered the reduction in the strike price. The Company calculated the difference in fair value of the warrants between the stated exercise price and the reduced exercise price and recorded $3,770 as a deemed dividend. The fair value of the warrants granted was estimated using the Black Scholes Method.

The following table summarizes the warrants that have been issued:

      Weighted   Weighted Average  Aggregate
   Number of Shares  Average Exercise Price  Remaining Life (Years)  Intrinsic Value
Outstanding at June 30, 2018   4,774,015   $0.29    5.5   $—   
Granted   214,166,533   $0.02    5.3   $14,284,908 
Expired   —     $—      —     $—   
Exercised   (2,500,000)  $0.02    —     $—   
Outstanding and exercisable at March 31, 2019   216,440,548   $0.03    5.3   $14,284,908 

 

Of the above warrants, 1,173,864 expire in fiscal year ending June 30, 2022, 556,818 expire in fiscal year ending June 30, 2023, and 214,709,866 expire in fiscal year ending June 30, 2025.

9. Subsequent Events

In April 2019, to facilitate the Company’s planned uplisting to the NASDAQ Stock Market and related potential future issuances and sales of equity securities for ordinary corporate finance and general corporate purposes and as recommended by the Board of Directors (“Board”), the Company’s stockholders approved an amendment to the Company’s Articles of Incorporation to effect a reverse split of its outstanding Class A common stock in the range of 50:1 to 200:1, as determined by the Board. Following that approval, the Company filed a Registration Statement on Form S-1 (Registration No. 333-231136) (the “S-1 Registration Statement”) pursuant to which it anticipates completing an offering of equity securities with proceeds sufficient to enable the launch and completion of the BIV201 Phase 2b study and fund internal operations for at least the next twelve months.

 -15-

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

 

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

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

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

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

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

Management’s Discussion

 

BioVie is a clinical-stage company pursuing the discovery, development, and commercialization of innovative drug therapies targeting life-threatening complications of liver cirrhosis. Our initial disease target is ascites, a serious medical condition affecting about 100,000 Americans and many times more worldwide. Our therapeutic drug candidate BIV201 is based on a drug that is approved in about 40 countries to treat related complications of liver cirrhosis (part of the same disease pathway as ascites), but not yet available in the US. The active agent in BIV201, terlipressin, is a potent vasoconstrictor which is in use for various medical conditions around the world. The goal is for BIV201 to interrupt the ascites disease pathway, thereby halting the cycle of accelerating fluid generation in ascites patients.

 -16-

Comparison of the three months ended March 31, 2019 to the three months ended March 31, 2018

 

Total operating expenses for the three months ended March 31, 2019 were $848,000 compared to $691,000 for the three months ended March 31, 2018.  The net increase of $157,000 was primarily due to a $285,000 increase in research and development expenses due to the timing of clinical trials, offset by a $128,000 reduction in selling, general and administrative expenses due to the issuance of common stock in January 2018 as compensation for professionals.

Research and Development Expenses

Research and development expenses were $332,000 for the three months ended March 31, 2019, an increase of $286,000, from $46,000 for the three months ended March 31, 2018. The increase was primarily attributed to the timing of clinical trials.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $459,000 for the three months ended March 31, 2019, a decline of $128,000, compared to $587,000 for the three months ended March 31, 2018. In January 2018, the Company paid for professional fees with BioVie common stock.

Comparison of the nine months ended March 31, 2019 to the nine months ended March 31, 2018

 

Total operating expenses for the nine months ended March 31, 2019 were $1,841,000 compared to $1,848,000 for the nine months ended March 31, 2018.  The net decrease of $7,000 was primarily due to a $465,000 reduction in selling, general and administrative expenses due to the issuance of common stock in August 2017 and January 2018 as compensation for professionals, offset by the increase in research and development expenses of $457,000 as the Company resumed its clinical trial program and hired 1 full time employee and 1 half time employee in November 2018, which were previously consultants.

Research and Development Expenses

Research and development expenses were $732,000 for the nine months ended March 31, 2019, an increase of $457,000, from $275,000 for the nine months ended March 31, 2018. The increase was primarily attributed to continued analytical research and associated regulatory and clinical trial program planning and the Phase 2a clinical trial activities which began in July 2018.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $936,000 for the nine months ended March 31, 2019, a decline of $465,000, from $1,401,000 for the nine months ended March 31, 2018. In August 2017 and January 2018, the Company paid for professional fees related to financial and strategic advisory services with BioVie common stock.

Capital Resources and Liquidity

 

The Company completed a capital raise of $3.2 million in July 2018 which enabled the Company to resume and further develop its products. At March 31, 2019 the Company had $972,000 of cash to complete its Phase 2a clinical trial of the BIV201 therapy and initiate a planned Phase 2b clinical trial. As further discussed below, the Company is pursuing various options to raise further financing to continue the testing and development of its product. If the Company is not successful in raising additional funds it may reduce its monthly spend and potentially delay the implementation of the larger scale Phase 2b Clinical trial until sufficient funding is secured.

As of March 31, 2019, the Company had an accumulated deficit of $6.6 million and as a development stage enterprise, the Company expects substantial losses in future periods. The accompanying interim financial statements were 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. The Company’s future operations are dependent on the success of the Company’s ongoing development and commercialization effort, as well as continuing to secure additional financing.

 -17-

In July 2018 we completed a capital raise from Acuitas Group Holdings, LLC (“Acuitas”) and other purchasers and received gross proceeds of $3.2 million and has resumed to further clinical development of BIV201. The Acuitas investment agreement also stipulated that if the clinical development of BIV201 continues, Acuitas may invest an additional $3 million to fund operations in year two, less any federal or FDA grant funding received by the Company.

We cannot assure you that our drug candidate will be developed, work, or receive regulatory approval; that we will ever earn revenues sufficient to support our operations or that we will ever be profitable. Furthermore, since we have no committed source of financing, we cannot assure you that we will be able to raise money as and when we need it to continue our operations. If we cannot raise funds as and when we need them, we may be required to severely curtail, or even to cease, our operations.

Additionally, in April 2019, to facilitate our planned uplisting to the NASDAQ Stock Market and related potential future issuances and sales of our equity securities for ordinary corporate finance and general corporate purposes and as recommended by our Board of Directors (“Board”), our stockholders approved an amendment to our Articles of Incorporation to effect a reverse split of our outstanding Class A common stock in the range of 50:1 to 200:1, as determined by our Board. Following that approval, we filed a Registration Statement on Form S-1 (Registration No. 333-231136) (the “S-1 Registration Statement”) pursuant to which we anticipate completing an offering of our equity securities with proceeds sufficient to enable the launch and completion of the BIV201 Phase 2b study and fund our internal operations for at least the next twelve months. There can be no assurance, however, that we will achieve effectiveness of the S-1 Registration Statement or successfully complete an offering thereunder.

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

These circumstances raise substantial doubt on our ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from this uncertainty.

Off-Balance Sheet Arrangements

 

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

Critical Accounting Policies and Estimates

 

For the nine-month period ended March 31, 2019, 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, 2018.

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.

 -18-

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable

 

Item 4.  Controls and Procedures

 

We maintain “disclosure controls and procedures,” such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulate 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 is 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 upon 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 March 31, 2019 that have materially affected or are reasonably likely to materially affect, our internal control over financial reporting.

 

 -19-

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

To our knowledge, neither the Company nor any of our officers or directors is a party to any material legal proceeding or litigation and such persons know of no material legal proceeding or contemplated or threatened litigation, other than as set forth below:

On April 30, 2018, we received notice that Mallinckrodt Pharmaceuticals Ireland Limited had petitioned the US Patent and Trademark Office (USPTO) to institute an Inter Partes Review of our US Patent No. 9,655,945 titled “Treatment of Ascites” (the ‘945 patent). Inter Partes Review is a trial proceeding conducted with the USPTO Patent Trial and Appeal Board (PTAB) to review the patentability of one or more claims of a patent. Such review is limited to grounds of novelty and obviousness on the basis of prior art consisting of patents and printed publications. On August 15, 2018, we submitted a Preliminary Response to the PTAB providing a rationale as to why, in our opinion, Mallinckrodt’s request to institute the IPR should not be granted. On November 14, 2018, the PTAB granted institution of the IPR challenge after determining that there was a reasonable likelihood of success in proving that at least one of our 14 claims was unpatentable. On March 7, 2019, we submitted a Patent Owner’s Response and a Patent Owner’s Contingent-Motion to Amend our patent claims, and Declaration of Dr. Jaime Bosch, MD, PhD, our medical expert. We are actively defending the ‘945 patent and may explore the possibility of settlement with Mallinckrodt. However, there can be no assurance in that a favorable outcome will result, or if settlement is reached that the PTAB will accept it. Although the PTAB encourages settlement, in view of public-interest considerations, the board may continue the proceeding to a final written decision even if the parties settle. If the IPR is not terminated due to settlement, the PTAB is statutorily required to issue its final written decision in this case before November 14, 2019.

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 2. Unregistered sales of equity securities

 

During the three months ended March 31, 2019, we issued the following securities that were not registered under the Securities Act: 

On March 11, 2019, the Company issued stock options to purchase 1,000,000 shares of Class A common stock to an investor relations (IR) consultant. The stock options are exercisable at $0.05 at any time and expire 5 years from the date of issuance. The stock options were issued in reliance upon Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving a public offering.  

Item 3. Defaults Upon Senior Securities

 

None

 

Item 4.  Mine Safety Disclosures

 

None

 

Item 5.  Other Information

 

None

 

 -20-

Item 6. Exhibits

 

(a) Exhibit index

 

Exhibit 
 
31.1*  

Certification of Chief Executive Officer (Principal Executive Officer) required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.

 

31.2*  

Certification of Chief Financial Officer (Principal Financial Officer) required by Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.

 

31.1**   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.

 

 -21-

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/ Terren Peizer

________________

Terren Peizer

  Chairman and Chief Executive Officer (Principal Executive Officer)   May 10, 2019

 

 

/s/ Joanne Wendy Kim

_________________

Joanne Wendy Kim

  Chief Financial Officer    May 10, 2019

 

 -22-

EX-31.1 2 bivi-20190331_10qex31z1.htm EXHIBIT 31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

AND RULE 13-A14 OF THE EXCHANGE ACT OF 1934

 

CERTIFICATION

     

I, Terren Peizer, certify that:
     
1. I have reviewed this quarterly report on Form 10-Q of Biovie, Inc.;
     
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
     
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:
   
  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
     
5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
     
  a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: May 10, 2019 

                /s/ Terren S. Peizer
                Terren S. Peizer
Chief Executive Officer
(Principal Executive Officer)

 

EX-31.2 3 bivi-20190331_10qex31z2.htm EXHIBIT 31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

AND RULE 13-A14 OF THE EXCHANGE ACT OF 1934

 

CERTIFICATION

     

I, Joanne Wendy Kim, certify that:
     
1. I have reviewed this quarterly report on Form 10-Q of Biovie, Inc.;
     
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
     
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
     
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a – 15(f) and 15d – 15(f)) for the registrant and have:
   
  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
     
  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
     
5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
     
  a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 10, 2019 

                /s/ Joanne Wendy Kim
               

Joanne Wendy Kim

Chief Financial Officer
(Principal Financial and Accounting Officer)

 

EX-32.1 4 bivi-20190331_10qex32z1.htm EXHIBIT 32.1

Exhibit 32.1

 

 

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S. C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Biovie, Inc., (the “Company”) on Form 10-Q for the period ended March 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Terren Peizer, Chief Executive Officer and Chairman of the Board of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, that, to my knowledge:

 

(1) The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date: May 10, 2019 

                /s/ Terren S. Peizer
                Terren S. Peizer
Chief Executive Officer
(Principal Executive Officer)

 

EX-32.2 5 bivi-20190331_10qex32z2.htm EXHIBIT 32.2

Exhibit 32.2

 

 

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S. C. SECTION 1350 AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Biovie, Inc., (the “Company”) on Form 10-Q for the period ended March 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joanne Wendy Kim, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, that, to my knowledge:

 

(1) The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: May 10, 2019 

                /s/ Joanne Wendy Kim
               

Joanne Wendy Kim

Chief Financial Officer
(Principal Financial and Accounting Officer)

 

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Document and Entity Information - shares
9 Months Ended
Mar. 31, 2019
May 10, 2019
Document And Entity Information    
Entity Registrant Name BIOVIE INC.  
Entity Central Index Key 0001580149  
Document Type 10-Q  
Document Period End Date Mar. 31, 2019  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Non-accelerated Filer  
Entity Common Stock, Shares Outstanding   316,453,673
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2019  
Entity Emerging Growth Company true  
Entity Small Business true  
Entity Ex Transition Period false  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.19.1
Condensed Balance Sheet (Unaudited) - USD ($)
May 10, 2019
Jun. 30, 2018
CURRENT ASSETS:    
Cash $ 971,614 $ 45,800
Other Assets 35,000
Total Current Assets 1,006,614 45,800
OTHER ASSETS:    
Intangible Assets 1,611,947 1,783,980
Goodwill 345,711 345,711
Total Fixed Assets 1,957,658 2,129,691
TOTAL ASSETS 2,964,272 2,175,491
CURRENT LIABILITIES:    
Accounts Payable and accrued expenses 179,054 884,207
Accrued Payroll 354,167
Total Current Liabilities 179,054 1,238,374
LONG TERM LIABILITIES:    
Demand Promissory Note 250,000
Notes Payable, Related Parties 575,918
Total Long Term Liabilities 825,918
TOTAL LIABILITIES 179,054 2,064,292
Commitments and contingencies
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 and 300,000,000 shares authorized at March 31, 2019 and June 30, 2018, respectively; 316,453,673 and 98,503,199 shares issued and outstanding at March 31, 2019 and June 30, 2018, respectively 31,645 9,850
Additional paid in capital 9,359,780 4,870,475
Accumulated deficit (6,606,207) (4,769,126)
Total Stockholders' Equity 2,785,218 111,199
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,964,272 $ 2,175,491
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.19.1
Condensed Balance Sheet (Unaudited) (Parenthetical) - $ / shares
May 10, 2019
Jun. 30, 2018
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 800,000,000 300,000,000
Common Stock Shares Issued 316,453,673 98,503,199
Common stock, shares outstanding 316,453,673 98,503,199
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.19.1
Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2018
Income Statement [Abstract]        
REVENUE
OPERATING EXPENSES        
Amortization 57,344 57,344 172,033 172,033
Research and development expenses 331,834 46,420 732,373 275,116
Selling, general and administrative expenses 459,111 587,450 936,180 1,401,104
TOTAL OPERATING EXPENSES 848,289 691,215 1,840,586 1,848,253
LOSS FROM OPERATIONS (848,289) (691,215) (1,840,586) (1,848,253)
OTHER EXPENSE (INCOME)        
Other Income (51,400)
Interest Expense 1,342 272 9,828
Interest income (248) (1,036) (1)
TOTAL OTHER EXPENSE (INCOME) (248) 1,342 (52,164) 9,827
NET LOSS (848,041) (692,557) (1,788,422) (1,858,080)
Deemed dividend 48,659
NET LOSS ATTRIBUTABLE TO COMPANY STOCKHOLDERS $ (848,041) $ (692,557) $ (1,837,081) $ (1,858,080)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED $ (0.00) $ (0.01) $ (0.01) $ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED 316,422,562 96,939,603 313,580,066 95,014,206
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Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Mar. 31, 2019
Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,788,422) $ (1,858,080)
Adjustments to reconcile net loss to net cash to cash used by operating activities:    
Common shares issued for service 49,000
Amortization of intangible assets 172,033 172,033
Stock based compensation expense 63,306 811,203
Gain on settlement of debt 51,400
Changes in operating assets and liabilities:    
Other assets (35,000)
Accounts Payable (382,203) 275,283
Accrued Payroll 187,500
Net cash used by operating activities (1,869,886) (412,061)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayment of debt (244,300) (10,000)
Proceeds from issuance of preferred shares 3,040,000
Proceeds from issuance of common stock and warrants 445,001
Net cash provided by financing activities 2,795,700 435,001
Net decrease in cash 925,814 22,940
Cash, beginning of period 45,800 5,140
Cash, end of period 971,614 28,080
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid for interest
Cash paid for taxes
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Conversion of preferred shares to common stock 3,200,000
Settlement of debt by issuance of common stock 1,150,135
Cashless exercise of warrants 224
Deemed dividends for ratchet adjustments to warrants $ 48,659
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.19.1
Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)
Preferred Stock
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Total
Beginning Balance at Jun. 30, 2017   $ 9,193 $ 3,483,134 $ (2,335,009) $ 1,157,318
Beginning Balance, Shares at Jun. 30, 2017   91,925,000      
Issuance of shares in a private placement   $ 117 244,883 245,000
Issuance of shares in a private placement (in shares)   1,169,091      
Issuance of shares for services   $ 150 329,850 330,000
Issuance of shares for services, Shares   1,500,000      
Stock option compensation   12,752 12,752
Net loss   (662,841) (662,841)
Ending Balance at Sep. 30, 2017   $ 9,460 4,070,619 (2,997,850) 1,082,229
Ending Balance, Shares at Sep. 30, 2017   94,594,091      
Beginning Balance at Jun. 30, 2017   $ 9,193 3,483,134 (2,335,009) 1,157,318
Beginning Balance, Shares at Jun. 30, 2017   91,925,000      
Issuance of shares for services        
Issuance of shares in exchange for debt settlement        
Stock option compensation         811,203
Cashless exercise of warrants        
Net loss         (1,858,080)
Ending Balance at Mar. 31, 2018   $ 9,734 4,738,797 (4,193,089) 555,442
Ending Balance, Shares at Mar. 31, 2018   97,334,697      
Beginning Balance at Sep. 30, 2017   $ 9,460 4,070,619 (2,997,850) 1,082,229
Beginning Balance, Shares at Sep. 30, 2017   94,594,091      
Issuance of shares in a private placement   $ 23 49,977 50,000
Issuance of shares in a private placement (in shares)   227,273      
Issuance of shares for services   $ 15 34,485 34,500
Issuance of shares for services, Shares   150,000      
Issuance of warrants in a private placement   100,000 100,000
Stock option compensation   27,021 27,021
Net loss   (502,682) (502,682)
Ending Balance at Dec. 31, 2017   $ 9,498 4,282,102 (3,500,532) 791,068
Ending Balance, Shares at Dec. 31, 2017   94,971,364      
Issuance of shares in a private placement   $ 33 49,967 50,000
Issuance of shares in a private placement (in shares)   333,333      
Issuance of shares for services   $ 203 242,197 242,400
Issuance of shares for services, Shares   2,030,000      
Issuance of warrants for services   12,469 12,469
Stock option compensation     152,062   152,062
Net loss   (692,557) (692,557)
Ending Balance at Mar. 31, 2018   $ 9,734 4,738,797 (4,193,089) 555,442
Ending Balance, Shares at Mar. 31, 2018   97,334,697      
Beginning Balance at Jun. 30, 2018   $ 9,850 4,870,475 (4,769,126) 111,199
Beginning Balance, Shares at Jun. 30, 2018   98,503,199      
Issuance of shares in a private placement $ 3,200,000 3,200,000 3,200,000
Issuance of shares in a private placement (in shares) 2,133,332        
Conversion of preferred stock to common stock $ (3,200,000) $ 21,333 (21,333)    
Conversion of preferred stock to common stock (in shares) (2,133,332) 213,333,200      
Issuance of shares in exchange for debt settlement   $ 98 1,150,037 1,150,135
Issuance of shares in exchange for debt settlement, Shares   975,361      
Stock option compensation   3,412 3,412
Cashless exercise of warrants   $ 224 (224)
Cashless exercise of warrants, Shares   2,241,913      
Deemed dividends for ratchet adjustment to warrants   48,659 (48,659)
Net loss   (439,871) (439,871)
Ending Balance at Sep. 30, 2018   $ 31,505 9,251,026 (5,257,656) 4,024,875
Ending Balance, Shares at Sep. 30, 2018   315,053,673      
Beginning Balance at Jun. 30, 2018   $ 9,850 4,870,475 (4,769,126) 111,199
Beginning Balance, Shares at Jun. 30, 2018   98,503,199      
Issuance of shares for services         49,000
Issuance of shares in exchange for debt settlement         1,150,135
Stock option compensation         63,306
Cashless exercise of warrants         224
Net loss         (1,788,422)
Ending Balance at Mar. 31, 2019   $ 31,645 9,359,780 (6,606,207) 2,785,218
Ending Balance, Shares at Mar. 31, 2019   316,453,673      
Beginning Balance at Sep. 30, 2018   $ 31,505 9,251,026 (5,257,656) 4,024,875
Beginning Balance, Shares at Sep. 30, 2018   315,053,673      
Stock option compensation   16,285 16,285
Net loss   (500,510) (500,510)
Ending Balance at Dec. 31, 2018   $ 31,505 9,267,310 (5,758,166) 3,540,650
Ending Balance, Shares at Dec. 31, 2018   315,053,673      
Issuance of shares for services   $ 140 48,860   49,000
Issuance of shares for services, Shares   1,400,000      
Stock option compensation   43,609 43,609
Net loss   (848,041) (848,041)
Ending Balance at Mar. 31, 2019   $ 31,645 $ 9,359,780 $ (6,606,207) $ 2,785,218
Ending Balance, Shares at Mar. 31, 2019   316,453,673      
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.19.1
Background Information
9 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Background Information
1. Background Information

 

BioVie Inc. (the “Company”) is a clinical-stage company pursuing the discovery, development, and commercialization of innovative drug therapies. The Company is currently focused on developing and commercializing BIV201 (continuous infusion terlipressin), a novel approach to the treatment of ascites due to chronic liver cirrhosis. The Company began dosing patients with BIV201 in September 2017 at the McGuire Research Institute Inc. in Richmond, VA. All six of the planned patients have been treated with BIV201 therapy in this Phase 2a clinical trial. In May 2019, the Company announced that the primary study objectives to assess the safety, tolerability, and pharmacokinetics (PK) of a continuous infusion of terlipressin over 28 days had been achieved. Detailed results will be presented to the Food & Drug Administration (“FDA”) in the first half of 2019.

 

BIV201 has the potential to improve the health of thousands of patients suffering from life-threatening complications of liver cirrhosis due to hepatitis, nonalcoholic steatohepatitis (NASH), and alcoholism. It has FDA Fast-Track status and Orphan Drug designation for the most common of these complications, ascites, which represents a significant unmet medical need. The FDA has never approved any drug specifically for treating ascites. The Company has secured a US Patent covering the use of BIV201 for the treatment of ascites patients in the outpatient setting using ambulatory pump infusion, and has filed patent applications for its product candidate in Japan, and Europe, Hong Kong, and China. BIV201 also received Orphan Drug designation for hepatorenal syndrome (“HRS”) in November 2018.

 

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

 

The Company’s activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the Company’s business plan.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.19.1
Liquidity
9 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Liquidity
2. Liquidity and Going Concern

 

The Company’s operations are subject to a number of factors that can affect its operating results and financial conditions. Such factors include, but are not limited to: the results of clinical testing and trial activities of the Company’s products, the Company’s ability to obtain regulatory approval to market its products, competition from products manufactured and sold or being developed by other companies, the price of, and demand for, Company products, the Company’s ability to negotiate favorable licensing or other manufacturing and marketing agreements for its products, and the Company’s ability to raise capital. The Company’s financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has experienced losses since inception and has an accumulated deficit of approximately $6.6 million at March 31, 2019. In addition, the Company has not generated any revenues and no revenues are anticipated 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 continuing to secure additional financing.

In July 2018, the Company completed a capital raise from Acuitas Group Holdings, LLC (“Acuitas”) and other purchasers and received net proceeds of $3.2 million and has resumed further clinical development of BIV201. The Acuitas investment agreement also stipulated that if the clinical development of BIV201 continues, Acuitas may at its option invest up to an additional $3 million to fund operations in year two, less any federal or FDA grant funding received by the Company.

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

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Significant Accounting Policies
9 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Significant Accounting Policies
3. Significant Accounting Policies

 

Basis of Presentation – Interim Financial Information

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United State of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. The Condensed Balance Sheet at June 30, 2018 was derived from audited annual financial statements but does not contain all the footnote disclosures from the annual financial statements. The accompanying financial statements and information included under the heading: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with our Company’s audited financial statements and related notes included in our Company’s Form 10-K for the year ended June 30, 2018 filed with the SEC on October 5, 2018.

For a summary of significant accounting policies, see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed with the SEC on October 5, 2018.

Net Loss per Common Share

Basic net loss per common share is computed by dividing the net loss before deemed dividend by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss 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, convertible preferred stock and convertible debentures. Due to the net loss for the period, such amounts were excluded from the diluted loss since their effect was considered anti-dilutive.

The table below shows the number of outstanding stock options and warrants as of March 31, 2019 and June 30, 2018:

  March 31, 2019   June 30, 2018
  Number of Shares   Number of Shares
Stock Options 7,250,000   5,150,000
Warrants 216,440,548   4,774,015
Total 223,690,548   9,924,015

 

Recent accounting pronouncements

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

In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting”. This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the financial statements.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.19.1
Intellectual Property
9 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
Intellectual Property

4. Intellectual Property

Intellectual property, stated at cost, less accumulated amortization consists of the following:

 

  March 31, 2019   June 30, 2018
       
Intellectual Property  $                      2,293,770    $                      2,293,770
Accumulated Amortization                             681,823                               509,790
Intellectual Property, Net  $                      1,611,947    $                      1,783,980

 

Amortization expense for the three- and nine-month periods ended March 31, 2019 and 2018 was $57,344 and $172,033, respectively. Estimated future amortization expense is as follows:

Year ending June 2019 (remaining three months)  $                           57,344
2020                             229,377
2021                             229,377
2022                             229,377
2023                             229,377
Thereafter                             637,095
   $                      1,611,947
XML 22 R11.htm IDEA: XBRL DOCUMENT v3.19.1
Renegotiated Note
9 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Renegotiated Debt

5. Renegotiated Debt

On July 19, 2018, Geis-Hides Consulting LLC entered into an Accord and Debt Satisfaction Agreement with the Company in which the consulting firm agreed to release the Company from all liabilities arising from the Original Contract and Debt Repayment Plan dated December 15, 2013 totaling $132,000 and received cash of $65,000 and 260,000 common shares in satisfaction. The common shares were valued at the market price on the date of settlement at $0.06 per common share. The gain of $51,400 on the settlement of debt was reflected on the Statements of Operations as “other income” for the nine-month period ended March 31, 2019.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.19.1
Related Party Transactions
9 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

6. Related Party Transactions

On July 9, 2018, Jonathan Adams (COO) entered into an Accord and Debt Satisfaction Agreement with the Company in which he agreed to release the Company from all liabilities including the original contract to defer payment of his accrued salary dated March 23, 2017, the promissory note issued by the Company to defer payment of accrued salary; and subsequent unpaid salary, totaling the amount of $534,722, and received cash of $25,694 in satisfaction. The gain of $509,028 on the settlement of debt was reflected in the additional paid in capital.

On July 9, 2018, Elliot Ehrlich (former CEO and shareholder) entered into an Accord and Debt Satisfaction Agreement with the Company in which he agreed to release the Company from all liabilities including the original contract to defer payment of accrued salary dated March 23, 2017, totaling the amount of $222,028 the promissory note issued by the Company to defer payment of accrued salary; and received cash of $22,273 and 222,028 common shares in satisfaction. The common shares were valued at the market price on the date of settlement at $0.06 per common share. The gain of $186,503 on the settlement of debt was reflected in the additional paid in capital.

On August 8, 2018, Barrett Ehrlich (Independent contractor, related party to Elliot Ehrlich and shareholder) on behalf of The Barrett Edge Inc. (“Barrett”) entered into an Accord and Debt Satisfaction Agreement with the Company in which Barrett agreed to release the Company from all liabilities including the original contract to defer payment of accrued consulting fees dated March 23, 2017, the promissory note issued by the Company to defer payment of accrued consulting fees; loan to the Company for $14,000, and subsequent unpaid consulting fees, totaling $543,014, and received cash of $131,333 and 493,333 common shares in satisfaction. The common shares were valued at the market price on the date of settlement at $0.13 per common share. The gain of $361,548 on the settlement of debt was reflected in the additional paid in capital.

See note 8 for other related party transactions.

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Commitments and Contingencies
9 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

7. Commitments and Contingencies 

Office Lease 

On October 1, 2018, the Company executed a lease agreement with Acuitas Group Holdings, LLC (related party) for the Company’s office at 11601 Wilshire Blvd Ste 1100, Los Angeles, CA 90025. The lease is a month-to-month lease that may be cancelled upon 30 days’ written notice and requires monthly payments of $1,000.

Challenge to US Patent

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

On August 15, 2018, BioVie submitted a Preliminary Response to the PTAB providing a rationale as to why, in the Company’s opinion, Mallinckrodt’s request to institute the IPR should not be granted. On November 14, 2018, the PTAB granted institution of the IPR challenge after determining that there was a reasonable likelihood of success in proving that at least one of the Company’s 14 claims was unpatentable. On March 7, 2019, we submitted a Patent Owner’s Response and a Patent Owner’s Contingent-Motion to Amend our patent claims, and Declaration of Dr. Jaime Bosch, MD, PhD, our medical expert. We are actively defending the ‘945 patent and may explore the possibility of settlement with Mallinckrodt. However, there can be no assurance in that a favorable outcome will result, or if settlement is reached that the PTAB will accept it. Although the PTAB encourages settlement, in view of public-interest considerations, the board may continue the proceeding to a final written decision even if the parties settle. If the IPR is not terminated due to settlement, the PTAB is statutorily required to issue its final written decision in this case before November 14, 2019. As of March 31, 2019, no adjustments or accruals are reflected as the Company is unable to determine a likely outcome at this time.

Royalty Agreements

Pursuant to the Agreement and Plan of Merger entered into on April 11, 2016 between 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.

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

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.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.19.1
Equity Transactions
9 Months Ended
Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Equity Transactions

8. Equity Transactions

Stock Options

The following table summarizes the activity relating to the Company’s stock options for the nine months ended March 31, 2019:

  Options   Weighted-Average Exercise Price   Weighted Remaining Average Contractual Term   Aggregate Intrinsic Value
       
       
       
       
Outstanding at June 30, 2018 5,150,000    $                 0.12   5.8    $                     -   
Granted 2,100,000    $                 0.04   4.6    $             88,370
Options Exercised or Forfeited                         -       $                     -      -    $                     -   
Outstanding at March 31, 2019 7,250,000    $                 0.10   5.3    $           166,175
Exercisable at March 31, 2019 6,250,000    $                 0.10   5.3    $                     -   

 

The fair value of each option grant on the date of grant is estimated using the Black-Scholes Option – Pricing model reflecting the following weighted-average assumptions:

  March 31,
  2019   2018
Expected life of options (In years) 5   5
Expected volatility 69.77%   69.66%
Risk free interest rate 2.60%   1.59%
Dividend Yield 0%   0%

 

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

The Company recorded stock-based compensation expense of $43,609 and $63,306 for the three-and nine-month periods ended March 31, 2019, respectively, and $152,062 and $191,835 for the three-and nine-month periods ended March 31, 2018, respectively.

The fair value of options vested during the nine-month period ended March 31, 2019 and 2018, was $10,235 and $25,281 respectively.

As of March 31, 2019, there was approximately $1,555 of unrecognized compensation cost related to non-vested options granted which is expected to be recognized over a weighted-average period of 1 months.

The following is a summary of stock options outstanding and exercisable by exercise price as of March 31, 2019:

    Weighted Average Contract Life  
     
     
Exercise Price Outstanding Exercisable
 $                       0.03 700,000 4.8 700,000
 $                       0.05 1,300,000 4.6 1,300,000
 $                       0.06 3,100,000 6.9 2,100,000
 $                       0.07 100,000 4.5 100,000
 $                       0.10 500,000 3.8 500,000
 $                       0.20 200,000 3.5 200,000
 $                       0.21 550,000 3.1 550,000
 $                       0.22 100,000 3.0 100,000
 $                       0.23 200,000 3.4 200,000
 $                       0.25 500,000 2.6 500,000
Total 7,250,000   6,250,000

 

Offerings of Common Stock and Warrants

Issuance of Shares for Cash

On July 3, 2018, BioVie Inc., the Company, entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Acuitas Group Holdings, LLC (“Acuitas”) and certain other purchasers identified in the Purchase Agreement (together with Acuitas, the “Purchasers”) pursuant to which (i) the Purchasers agreed to purchase an aggregate of 2,133,332 shares of the Company’s newly created Series A Convertible Preferred Stock (the “Preferred Stock”) at a price per share of $1.50 per share of Preferred Stock (the “Initial Sale”) and (ii) the Company will issue associated warrants (the “Warrants”) to purchase 213,333,200 shares of the Company’s Class A Common Stock (the “Common Stock”), each subject to the terms and conditions set forth in the Purchase Agreement, for an aggregate consideration of $3.2 million. The Company received $160,000 of the $3.2 million in April and May 2018 as prepaid equity. Acuitas also received an additional 833,333 Warrants in connection with the payoff of a note issued by the Company in favor of Acuitas. The Initial Sale and issuance of the Warrants occurred on July 3, 2018. In addition, Acuitas has the option to purchase up to an additional 200,000,000 shares of Common Stock at a price per share of $0.015, and associated warrants on the same terms as the Warrants, within two weeks following the one year anniversary of the closing of the Initial Sale (the “Subsequent Sale”) in the event that the Company has not obtained $3,000,000 of funding through various non-dilutive grants prior to the one year anniversary of the closing of the Initial Sale.

Each share of Preferred Stock automatically converted into 100 shares of Common Stock upon the filing with the Secretary of State of the State of Nevada of a Certificate of Amendment to the Company’s Articles of Incorporation (the “Amendment”) on August 13, 2018 that increased the number of authorized shares of Common Stock to 800,000,000. The Amendment was approved by the written consent of the holders of more than a majority of the Company’s issued and outstanding Common Stock on July 3, 2018 and was filed with the Secretary of State of the State of Nevada 20 calendar days following the distribution of the Company’s Definitive Information that was filed with the Securities and Exchange Commission.

The purchase price of the Preferred Stock in the Initial Sale, the exercise price of the Warrants, and the Common Stock in the Subsequent Sale is subject to adjustment. In the event that Mallinckrodt Pharmaceuticals Ireland Limited prevails in any proceeding which results in the useful life of the Company’s current intellectual property rights being reduced by more than 75 percent, then the price per share of Common Stock, the associated conversion ratio of the Preferred Stock, and the exercise price of the Warrants shall be retroactively adjusted to 50 percent of the then-effective price per share of Common Stock under the Purchase Agreement (for example, if the then-effective price per share of Common Stock is $0.015, then following such event, the price per share will be $0.0075). In this case, the Company may be required to issue additional shares of Common Stock, but in no event will the Company be required to pay cash, to reflect such lower price per share.

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

Pursuant to the Purchase Agreement, Terren Peizer, the Chairman of Acuitas, was appointed as a member of the Company’s Board of Directors (the “Board”) and as the Chief Executive Officer of the Company, effective July 3, 2018. The issuance of the Preferred Stock, the Warrants and the underlying common stock under the Purchase Agreement is exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act.

Issuance of Shares for Services

On January 2, 2019, the Company issued 1,400,000 shares of common stock as part of the annual board of director compensation. The share price on date of issuance was $0.035 per share.

 

Issuance of Shares in Settlement of Debt

During the nine months ended March 31, 2019, the Company settled $1,475,765 of debt including $1,313,765 owed to related parties, by issuing 975,361 shares of common stock with a fair value of $1,150,135. See notes 5 and 6.

Issuance of Stock Options

On October 1, 2018, the Company issued stock options to purchase 100,000 shares of common stock to the Chief Financial Officer as part of her compensation. The stock options were issued and are exercisable at an exercise price of $0.07 at any time from date of issuance and expire in 5 years from the date of issuance.

On October 13, 2018, the Company issued stock options to purchase 100,000 shares of common stock as part of their annual board of director compensation. The stock options were issued and are exercisable at $0.05 at any time from date of issuance and expire in 5 years from the date of issuance.

On October 27, 2018, the Company issued stock options to purchase 100,000 shares of common stock as part of their annual board of director compensation. The stock options were issued and are exercisable at $0.05 at any time from date of issuance and expire in 5 years from the date of issuance

On November 10, 2018, the Company issued stock options to purchase 100,000 shares of common stock as part of their annual board of director compensation. The stock options are exercisable at an exercise price of $0.05 at any time from date of issuance and expire in 5 years from the date of issuance.

On January 19, 2019, the Company issued stock options to purchase 100,000 shares of common stock to each of five key employees or consultants and two company directors as part of his or her annual compensation, for an aggregate total of 700,000 stock options. The stock options are exercisable at an exercise price of $0.025 at any time from date of issuance until 5 years from the date of issuance.

On March 11, 2019, the Company issued stock options to purchase 1,000,000 shares of common stock to an investor relations (IR) consultant. The stock options were issued and are exercisable at $0.05 at any time from date of issuance and expire in 5 years from the date of issuance.

Cashless exercise of warrant

On August 4, 2018, the Company issued 2,241,913 shares of common stock pursuant to a cash less exercise of warrants to purchase 2,500,000 shares at an exercise price of $0.015 per share. As a result of the conversion of the Series A Preferred Stock in July 2018, the exercise of warrants to purchase 2,500,000 shares of common stock was reduced from $0.15 per share to $0.015 per share.

 

Warrant Price Adjustment

In December 2017, the Company issued warrants to purchase 2,500,000 shares of common stock in a private placement transaction for aggregate gross proceeds of $100,000. The warrants were exercisable at an exercise price of $0.20 at any time from date of issuance until 7 years from the date of issuance. The warrants have a down round feature that reduces the exercise price if the Company sells stock for a lower price. In January 2018, the Company sold shares at $0.15, which therefore triggered the reduction in the strike price. The Company calculated the difference in fair value of the warrants between the stated exercise price and the reduced exercise price and recorded $20,995 as a deemed dividend. In July 2018, the Company sold shares at $0.015, which therefore triggered the reduction in the strike price. The Company calculated the difference in fair value of the warrants between the stated exercise price and the reduced exercise price and recorded $44,889 as a deemed dividend. The fair value of the warrants granted was estimated using the Black Scholes Method.

In January 2018, the Company issued warrants to purchase 210,000 shares of common stock in exchange for banking services which was recognized at fair value. The warrants were exercisable at an exercise price of $0.15 at any time from date of issuance until 7 years from the date of issuance. The warrants have a down round feature that reduces the exercise price if the Company sells stock for a lower price. In July 2018, the Company sold shares at $0.015, which therefore triggered the reduction in the strike price. The Company calculated the difference in fair value of the warrants between the stated exercise price and the reduced exercise price and recorded $3,770 as a deemed dividend. The fair value of the warrants granted was estimated using the Black Scholes Method.

The following table summarizes the warrants that have been issued:

      Weighted Average   Weighted Average   Agggregate
  Number of Shares   Exercise Price   Remaining Life (Years)   Intrinsic Value
Outstanding at June 30, 2018 4,774,015    $                                            0.29                                                    5.5    $                           -   
Granted 214,166,533    $                                            0.02                                                    5.3    $            14,284,908
Expired -    $                                               -                                                        -       $                           -   
Exercised (2,500,000)    $                                            0.02                                                     -       $                           -   
Outstanding and exercisable at March 31, 2019 216,440,548    $                                            0.03                                                    5.3    $            14,284,908

 

Of the above warrants, 1,173,864 expire in fiscal year ending June 30, 2022, 556,818 expire in fiscal year ending June 30, 2023, and 214,709,866 expire in fiscal year ending June 30, 2025.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.19.1
Subsequent Events
9 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

9. Subsequent Events

In April 2019, to facilitate the Company’s planned uplisting to the NASDAQ Stock Market and related potential future issuances and sales of equity securities for ordinary corporate finance and general corporate purposes and as recommended by the Board of Directors (“Board”), the Company’s stockholders approved an amendment to the Company’s Articles of Incorporation to effect a reverse split of its outstanding Class A common stock in the range of 50:1 to 200:1, as determined by the Board. Following that approval, the Company filed a Registration Statement on Form S-1 (Registration No. 333-231136) (the “S-1 Registration Statement”) pursuant to which it anticipates completing an offering of equity securities with proceeds sufficient to enable the launch and completion of the BIV201 Phase 2b study and fund internal operations for at least the next twelve months.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.19.1
Significant Accounting Policies (Policies)
9 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation – Interim Financial Information

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United State of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) that are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. The Condensed Balance Sheet at June 30, 2018 was derived from audited annual financial statements but does not contain all the footnote disclosures from the annual financial statements. The accompanying financial statements and information included under the heading: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with our Company’s audited financial statements and related notes included in our Company’s Form 10-K for the year ended June 30, 2018 filed with the SEC on October 5, 2018.

For a summary of significant accounting policies, see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed with the SEC on October 5, 2018.

Net Loss per Common Share

Net Loss per Common Share

Basic net loss per common share is computed by dividing the net loss before deemed dividend by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per common share is computed by dividing net loss 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, convertible preferred stock and convertible debentures. Due to the net loss for the period, such amounts were excluded from the diluted loss since their effect was considered anti-dilutive.

The table below shows the number of outstanding stock options and warrants as of March 31, 2019 and June 30, 2018:

  March 31, 2019   June 30, 2018
  Number of Shares   Number of Shares
Stock Options 7,250,000   5,150,000
Warrants 216,440,548   4,774,015
Total 223,690,548   9,924,015
Recent accounting pronouncements

Recent accounting pronouncements

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

In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting”. This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on the financial statements.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.19.1
Significant Accounting Policies (Tables)
9 Months Ended
Mar. 31, 2019
Disclosure Significant Accounting Policies Tables Abstract  
Schedule of Dilutive securities were excluded from the computation of diluted loss per share

The table below shows the number of outstanding stock options and warrants as of March 31, 2019 and June 30, 2018:

  March 31, 2019   June 30, 2018
  Number of Shares   Number of Shares
Stock Options 7,250,000   5,150,000
Warrants 216,440,548   4,774,015
Total 223,690,548   9,924,015
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.19.1
Intellectual Property (Tables)
9 Months Ended
Mar. 31, 2019
Disclosure Intangible Assets Tables Abstract  
Schedule of Intangible Assets

Intellectual property, stated at cost, less accumulated amortization consists of the following:

 

  March 31, 2019   June 30, 2018
       
Intellectual Property  $                      2,293,770    $                      2,293,770
Accumulated Amortization                             681,823                               509,790
Intellectual Property, Net  $                      1,611,947    $                      1,783,980
Schedule of Future expected Amortization of intangible assets

Estimated future amortization expense is as follows:

Year ending June 2019 (remaining three months)  $                           57,344
2020                             229,377
2021                             229,377
2022                             229,377
2023                             229,377
Thereafter                             637,095
   $                      1,611,947
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.19.1
Equity Transactions (Tables)
9 Months Ended
Mar. 31, 2019
Disclosure Stock Options Tables Abstract  
Schedule of Stock Option Issued

The following table summarizes the activity relating to the Company’s stock options for the nine months ended March 31, 2019:

  Options   Weighted-Average Exercise Price   Weighted Remaining Average Contractual Term   Aggregate Intrinsic Value
       
       
       
       
Outstanding at June 30, 2018 5,150,000    $                 0.12   5.8    $                     -   
Granted 2,100,000    $                 0.04   4.6    $             88,370
Options Exercised or Forfeited                         -       $                     -      -    $                     -   
Outstanding at March 31, 2019 7,250,000    $                 0.10   5.3    $           166,175
Exercisable at March 31, 2019 6,250,000    $                 0.10   5.3    $                     -   

 

The fair value of each option grant on the date of grant is estimated using the Black-Scholes Option – Pricing model reflecting the following weighted-average assumptions:

  March 31,
  2019   2018
Expected life of options (In years) 5   5
Expected volatility 69.77%   69.66%
Risk free interest rate 2.60%   1.59%
Dividend Yield 0%   0%
Schedule of option outstanding and exercisable by exercise price

The following is a summary of stock options outstanding and exercisable by exercise price as of March 31, 2019:

    Weighted Average Contract Life  
     
     
Exercise Price Outstanding Exercisable
 $                       0.03 700,000 4.8 700,000
 $                       0.05 1,300,000 4.6 1,300,000
 $                       0.06 3,100,000 6.9 2,100,000
 $                       0.07 100,000 4.5 100,000
 $                       0.10 500,000 3.8 500,000
 $                       0.20 200,000 3.5 200,000
 $                       0.21 550,000 3.1 550,000
 $                       0.22 100,000 3.0 100,000
 $                       0.23 200,000 3.4 200,000
 $                       0.25 500,000 2.6 500,000
Total 7,250,000   6,250,000
Schedule of Warrants Issued

The following table summarizes the warrants that have been issued:

      Weighted Average   Weighted Average   Agggregate
  Number of Shares   Exercise Price   Remaining Life (Years)   Intrinsic Value
Outstanding at June 30, 2018 4,774,015    $                                            0.29                                                    5.5    $                           -   
Granted 214,166,533    $                                            0.02                                                    5.3    $            14,284,908
Expired -    $                                               -                                                        -       $                           -   
Exercised (2,500,000)    $                                            0.02                                                     -       $                           -   
Outstanding and exercisable at March 31, 2019 216,440,548    $                                            0.03                                                    5.3    $            14,284,908
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.19.1
Significant Accounting Policies (Details) - shares
9 Months Ended 12 Months Ended
Mar. 31, 2019
Jun. 30, 2018
Dilutive Securities excluded from the Computation of Diluted Loss Per Share 223,690,548 9,924,015
Warrant [Member]    
Dilutive Securities excluded from the Computation of Diluted Loss Per Share 216,440,548 4,774,015
Stock Option [Member]    
Dilutive Securities excluded from the Computation of Diluted Loss Per Share 7,250,000 5,150,000
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.19.1
Intellectual Property (Details) - USD ($)
May 10, 2019
Mar. 31, 2019
Jun. 30, 2018
Disclosure Intangible Assets Details Abstract      
Intellectual Property   $ 2,293,770 $ 2,293,770
Accumulated Amortization   681,823 509,790
Intellectual Property, Net $ 1,611,947 $ 1,611,947 $ 1,783,980
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.19.1
Intellectual Property (Details 2) - USD ($)
May 10, 2019
Mar. 31, 2019
Jun. 30, 2018
Disclosure Intangible Assets Details 2Abstract      
2019 $ 57,344    
2020 229,377    
2021 229,377    
2022 229,377    
2023 229,377    
Thereafter 637,095    
Intellectual Property, Net $ 1,611,947 $ 1,611,947 $ 1,783,980
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.19.1
Equity Transactions (Details) - Stock Option [Member]
9 Months Ended
Mar. 31, 2019
USD ($)
$ / shares
shares
Option Outstanding at beginning of period | shares 5,150,000
Option Granted | shares 2,100,000
Option Exercised | shares
Option Outstanding at end of period | shares 7,250,000
Option Excersiable at end of period | shares 6,250,000
Outstanding Weighted Average Exercise Price at the beginning of period | $ / shares $ 0.12
Weighted Average Exercise Price, Granted | $ / shares 0.04
Weighted Average Exercise Price, Exercised | $ / shares
Outstanding Weighted Average Exercise Price at the end of period | $ / shares 0.10
Excersiable Weighted Average Exercise Price at the end of period | $ / shares $ 0.10
Weighted Average Remaining Contractual Term at the beginning of period 5 years 9 months 18 days
Weighted Average Remaining Contractual Term, Granted 4 years 7 months 6 days
Weighted Average Remaining Contractual Term at the end 5 years 3 months 18 days
Excersiable Weighted Average Remaining Contractual Term at the end of period 5 years 3 months 18 days
Aggregate Intrinsic Value Outstanding at beginning of period | $
Granted | $ 88,370
Options Exercised or Forfeited | $
Aggregate Intrinsic Value Outstanding at end of period | $ 166,175
Aggregate Intrinsic Value Exercisable | $
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.19.1
Equity Transactions (Details 2) - Stock Option [Member] - $ / shares
9 Months Ended
Mar. 31, 2019
Jun. 30, 2018
Exercise Price $ 0.03  
Option Outstanding 700,000  
Weighted Average Contractual Life 4 years 9 months 18 days  
Option Excersiable 700,000  
Exercise Price $ 0.05  
Option Outstanding 1,300,000  
Weighted Average Contractual Life 4 years 7 months 6 days  
Option Excersiable 1,300,000  
Exercise Price $ 0.06  
Option Outstanding 3,100,000  
Weighted Average Contractual Life 6 years 10 months 24 days  
Option Excersiable 2,100,000  
Exercise Price $ 0.07  
Option Outstanding 100,000  
Weighted Average Contractual Life 4 years 6 months  
Option Excersiable 100,000  
Exercise Price $ 0.10  
Option Outstanding 500,000  
Weighted Average Contractual Life 3 years 9 months 18 days  
Option Excersiable 500,000  
Exercise Price $ 0.20  
Option Outstanding 200,000  
Weighted Average Contractual Life 3 years 6 months  
Option Excersiable 200,000  
Exercise Price $ 0.21  
Option Outstanding 550,000  
Weighted Average Contractual Life 3 years 1 month 6 days  
Option Excersiable 550,000  
Exercise Price $ 0.22  
Option Outstanding 100,000  
Weighted Average Contractual Life 3 years  
Option Excersiable 100,000  
Exercise Price $ 0.23  
Option Outstanding 200,000  
Weighted Average Contractual Life 3 years 4 months 24 days  
Option Excersiable 200,000  
Exercise Price $ 0.25  
Option Outstanding 500,000  
Weighted Average Contractual Life 2 years 7 months 6 days  
Option Excersiable 500,000  
Option Outstanding 7,250,000 5,150,000
Weighted Average Contractual Life 5 years 9 months 18 days  
Option Excersiable 6,250,000  
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.19.1
Equity Transactions (Details 3) - Warrant [Member]
9 Months Ended
Mar. 31, 2019
USD ($)
$ / shares
shares
Warrant Outstanding at the beginning of the year | shares 4,774,015
Warrant Granted | shares 214,166,533
Warrant Expired | shares
Warrant Exercised | shares (2,500,000)
Warrant Outstanding at the end of year | shares 216,440,548
Weighted Average Exercise Price at the beginning of the year | $ / shares $ 0.29
Weighted Average Exercise Price, Granted | $ / shares 0.02
Weighted Average Exercise Price, Expired | $ / shares
Weighted Average Exercise Price, Exercised | $ / shares 0.02
Weighted Average Exercise Price at the end of year | $ / shares $ 0.03
Weighted Average Remaining Life at the beginning of the year 5 years
Weighted Average Remaining Life, Granted 5 years 3 months 18 days
Weighted Average Remaining Life at the end of year 5 years 3 months 18 days
Aggregate Intrinsic Value, Granted | $ $ 14,284,908
Aggregate Intrinsic Value Outstanding at end of period | $ $ 14,284,908
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