BioVie(BIVI) - 2021 Q2 - Quarterly Report

Financial Performance - The net loss for the three months ended December 31, 2020, was approximately $3.1 million, compared to a net income of $6.7 million for the same period in 2019, reflecting an increase in loss of approximately $9.8 million[87]. - The net income for the six months ended December 31, 2020, was $4.3 million, an increase of $1.5 million from $2.8 million for the same period in 2019[91]. - Total operating expenses for the three months ended December 31, 2020, were approximately $3 million, up from $710,000 for the same period in 2019, primarily due to increased research and development activities[88]. - Total operating expenses for the six months ended December 31, 2020, were approximately $3.5 million, compared to $1.4 million for the same period in 2019, reflecting increased research and development and administrative expenses[92]. Shareholder Information - As of December 31, 2020, the company had 965,065 total outstanding shares, a decrease from 1,435,067 shares as of December 31, 2019[24]. - As of December 31, 2020, stockholders' equity was approximately $13.1 million, with an accumulated deficit of approximately $90.4 million[96]. - The company issued 6,909,582 shares of common stock to Acuitas at a price of $10 per share during the public offering on September 22, 2020[33]. - The company raised approximately $15.6 million in net proceeds from a public offering on September 22, 2020, issuing 1,799,980 shares at $10 per share[94]. Debt and Financing - The company received $62,500 in loan proceeds under the Paycheck Protection Program (PPP), which is subject to 100% forgiveness[25]. - The company intends to file for forgiveness of the PPP loan within 10 months after the funding date, pending the outcome of new rulings[25]. - The company entered into a Securities Purchase Agreement with Acuitas for a 10% OID Convertible Delayed Draw Debenture with a commitment amount of up to $2.0 million[42]. - The company drew an initial $500,000 under the Debenture and received additional draws totaling approximately $1.3 million during the year ended June 30, 2020[45]. - The total interest expense related to the draws under the Debenture was approximately $99,000 for the year ended June 30, 2020[45]. Research and Development - Research and development expenses increased to approximately $938,000 for the three months ended December 31, 2020, from $347,000 for the same period in 2019, driven by preparations for 2B trials[89]. - The company is focused on developing BIV201, a therapeutic drug candidate targeting ascites, a serious condition affecting about 100,000 Americans[86]. Stock Options and Compensation - The company recorded stock-based compensation expense of $1,536,929 for the six-month period ended December 31, 2020, compared to $11,162 for the same period in 2019[61]. - As of December 31, 2020, the company had 750,400 stock options outstanding with a weighted average exercise price of $13.25 and an aggregate intrinsic value of $704,927[59]. - The company had approximately $4,400,886 of unrecognized compensation cost related to non-vested options as of December 31, 2020, expected to be recognized over a weighted-average period of approximately 3 years[61]. - The company issued stock options to purchase 691,600 shares at an exercise price of $13.91 on December 18, 2020, with a vesting period of 25% on the grant date and the remaining 75% vesting over three years[69]. Legal and Compliance - The Company evaluated recent accounting pronouncements and determined they have minimal impact on financial statements[102]. - As of the end of the reporting period, the Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective at a reasonable assurance level[103]. - There were no changes in internal control over financial reporting that materially affected the Company during the quarter ended December 31, 2020[104]. - The Company and its officers are not involved in any material legal proceedings or litigation[104]. Royalties and Obligations - The company has a royalty obligation of up to $200,000 per year on net sales of terlipressin products covered by specified patents[37]. - The company is obligated to pay a low single-digit royalty on net sales of terlipressin products capped at a maximum of $200,000 per year under the Technology Transfer Agreement with the University of Padova[78]. Derivative Liabilities - The fair value of derivative liabilities, including warrants and conversion options on the convertible Debenture, was $13.1 million as of September 22, 2020[51]. - The change in the fair value of derivative liabilities from June 30, 2020, was recorded as an increase of $8.3 million[51]. - The company recorded derivative liabilities totaling $21,412,304 as of June 30, 2020[52]. - The company recognized amortization of the unearned discount for the six months ended December 31, 2020, totaling $21,336[44].