Document and Entity Information
Document and Entity Information | 9 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information | |
Entity Registrant Name | BIOVIE INC. |
Entity Central Index Key | 1,580,149 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 97,334,699 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2,018 |
CONDENSED BALANCE SHEETS (Unaud
CONDENSED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
CURRENT ASSETS: | ||
Cash | $ 28,080 | $ 5,140 |
Total Current Assets | 28,080 | 5,140 |
OTHER ASSETS: | ||
Intangible Assets (Net of Amortization) | 1,841,324 | 2,013,357 |
Goodwill | 345,711 | 345,711 |
Total Fixed Assets | 2,187,036 | 2,359,068 |
TOTAL ASSETS | 2,215,116 | 2,364,209 |
CURRENT LIABILITIES: | ||
Accounts Payable and accrued expenses | 746,257 | 470,973 |
Related Party Loan | 25,000 | 35,000 |
Accrued Payroll | 312,500 | 125,000 |
Total Current Liabilities | 1,083,756 | 630,973 |
LONG TERM LIABILITIES: | ||
Notes Payable, Related Party | 575,917 | 575,918 |
Total Long Term Liabilities | 575,917 | 575,918 |
TOTAL LIABILITIES | 1,659,674 | 1,206,891 |
STOCKHOLDERS' EQUITY | ||
Preferred stock; $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, $0.0001 par value; 300,000,000 shares authorized; 97,334,699 and 91,925,000 shares issued and outstanding, respectively | 9,733 | 9,192 |
Additional paid in capital | 4,738,796 | 3,483,134 |
Accumulated deficit | (4,193,087) | (2,335,009) |
Total Stockholders' Equity | 555,442 | 1,157,318 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,215,116 | $ 2,364,209 |
CONDENSED BALANCE SHEETS (Unau3
CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Jun. 30, 2017 |
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 | 300,000,000 | 300,000,000 |
Common Stock Shares Issued | 97,334,699 | 91,925,000 |
Common stock, shares outstanding | 97,334,699 | 91,925,000 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUE | ||||
Sales | ||||
OPERATING EXPENSES | ||||
Amortization | 57,344 | 57,344 | 172,033 | 172,033 |
Research and development expenses | 46,420 | 120,043 | 275,116 | 375,872 |
Payroll expenses | 61,247 | 71,348 | 203,943 | 214,044 |
Professional fees | 489,443 | 126,098 | 1,093,857 | 312,277 |
Selling, general and administrative expenses | 36,760 | 25,693 | 103,304 | 35,453 |
TOTAL OPERATING EXPENSES | 691,215 | 400,527 | 1,848,253 | 1,109,680 |
LOSS FROM OPERATIONS | (691,215) | (400,527) | (1,848,253) | (1,109,680) |
OTHER EXPENSE (INCOME) | ||||
Other Income | (222,028) | (222,028) | ||
Interest Expense | 1,342 | 9,828 | ||
Interest income | (3) | (1) | (14) | |
TOTAL OTHER EXPENSE (INCOME), NET | 1,342 | (222,031) | 9,827 | (222,042) |
NET LOSS | $ (692,557) | $ (178,495) | $ (1,858,080) | $ (887,637) |
NET LOSS PER COMMON SHARE, BASIC AND DILUTED | $ (0.01) | $ 0 | $ (0.02) | $ (0.01) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED | 96,939,603 | 91,493,146 | 95,014,206 | 88,591,685 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,858,080) | $ (887,637) |
Adjustments to reconcile net loss to net cash to cash used by operating activities: | ||
Amortization of intangible assets | 172,033 | 172,033 |
Share based compensation expense | 811,203 | 34,884 |
Changes in operating assets and liabilities: | ||
Decrease in prepaid expenses | 6,982 | |
Accounts Payable | 275,284 | 209,818 |
Accrued Payroll | 187,500 | (34,526) |
Net cash used by operating activities | (412,061) | (498,446) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of loan payable | (10,000) | |
Proceeds from issuance of common stock | 345,001 | 409,999 |
Proceeds from issuance of Warrants | 100,000 | |
Net cash provided by financing activities | 435,001 | 409,999 |
Net decrease in cash | 22,940 | (88,448) |
Cash, beginning of period | 5,140 | 123,757 |
Cash, end of period | 28,080 | 35,309 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest | ||
Cash paid for income tax |
Background Information
Background Information | 9 Months Ended |
Mar. 31, 2018 | |
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, a novel approach to the treatment of ascites due to chronic liver cirrhosis. In March 2017, the Company received notification from the FDA that it could initiate a Phase 2a US clinical trial. In April the Company signed a Cooperative Research and Development Agreement (CRADA) with the McGuire Research Institute/VA in Richmond, VA, and began dosing patients with BIV201 in September 2017. As of April 2018, three patients had been treated with BIV201 therapy in this ongoing Phase 2a clinical trial. BIV201 has the potential to improve the health of thousands of patients suffering from life-threatening complications of liver cirrhosis due to hepatitis, 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 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 have exchanged small (low single-digit) ownership rights to each other’s ascites drug development programs. The Company has an issued US Patent covering the use of BIV201 for the treatment of ascites patients in the outpatient setting using ambulatory pump infusion, and has filed a patent application for its drug candidate in Japan, as well as a Partnership in Clinical Trials (PCT) in Europe. 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. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2018 | |
Notes to Financial Statements | |
Going Concern | 2. Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the nine months ended March 31, 2018, the Company had a net loss of $1,858,080. As of March 31, 2018, the Company had a working capital deficit of $1,055,676 and had not yet earned any revenues. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. Since inception, the Company has financed its activities principally from the sale of equity securities. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes and proceeds from sub-licensing agreements until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 3. Significant Accounting Policies Unaudited Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with a reading of the Company’s form 10-K filed with the SEC on August 24, 2017. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. All of the Company’s cash balances were fully insured at March 31, 2018. Financial Instruments The Company’s financial instruments include cash and accounts payable. The carrying amounts of cash and accounts payable approximate their fair value, due to the short-term nature of these items. Research and Development Research and development costs are charged to operations when incurred and are included in operating expenses. The Company expensed $275,116 for research and development for the nine months ended March 31, 2018. Income Taxes Deferred income tax assets and liabilities arise from temporary differences associated with differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Deferred tax assets and liabilities are classified as current or non-current, depending on the classification of the assets or liabilities to which they relate. Deferred tax assets and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The Company follows the provisions of FASB ASC 740-10 “ Uncertainty in Income Taxes Earnings (Loss) per Share Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive options outstanding during the year. For the nine months ended March 31, 2018 all outstanding options have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive. The table below shows the number of outstanding options and shares as of March 31,2018. Number of Shares (Thousands) Stock Options 5,150 Warrants 9,774 Total 14,924 Stock-based Compensation The Company has accounted for stock-based compensation under the provisions of FASB ASC 718 – “Stock Compensation” which requires the use of the fair-value based method to determine compensation for all arrangements under which employees and others receive shares of stock or equity instruments (stock options and common stock purchase warrants). For employee awards, the fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. For non-employees, the fair value of each stock option award is estimated on the measurement date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. For non-employees, the Company utilizes the graded vesting attribution method under which the entity treats each separately vesting portion (tranche) as a separate award and recognizes compensation cost for each tranche over its separate vesting schedule. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the stock options. For employee awards, the expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. Fair Value The carrying value of the Company’s financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accrued payroll, accounts payable, accrued expenses and related party advances. Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of net identified tangible and intangible assets acquired. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. The Company’s impairment review process compares the fair value of the reporting unit to its carrying value, including the goodwill related to the reporting unit. To determine the fair value of the reporting unit, the Company may use various approaches including an asset or cost approach, market approach or income approach or any combination thereof. These approaches may require the Company to make certain estimates and assumptions including future cash flows, revenue and expenses. These estimates and assumptions are reviewed each time the Company tests goodwill for impairment and are typically developed as part of the Company’s routine business planning and forecasting process. While the Company believes its estimates and assumptions are reasonable, variations from those estimates could produce materially different results. The Company did not recognize any goodwill impairments for the year ended June 30 th Impairment of Long-Lived Assets Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted estimated future cash flows, an impairment review is performed. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Generally, fair value is determined using valuation techniques such as expected discounted cash flows or appraisals, as appropriate. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated or amortized. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Recent accounting pronouncements The Company has reviewed recent accounting pronouncements issued by the FASB (including its EITF), the AICPA, and the SEC and did not or are not believed by management to have a material impact on the Company’s financial statements. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4. Intangible Assets The company’s intangible assets consist of intellectual property acquired from LAT Pharma, Inc., and are amortized over their estimated useful lives as indicated below. The following is a summary of the intangible assets as of March 31, 2018 and 2017. March 31, 2018 June 30, 2017 Intangible Assets subject to Amortization $ 2,013,357 $ 2,242,733 Accumulated Amortization $ 172,033 $ 229,376 Intangible Assets (Net of Amortization $ 1,841,324 $ 2,013,357 Future expected Amortization of intangible assets is as follows: Year Ending June 30, 2018 (Remaining in Year) $ 57,344 2019 $ 229,376 2020 $ 229,376 2021 $ 229,376 2022 $ 229,376 Thereafter $ 866,473 $ 1,841,324 |
Related Party Loan
Related Party Loan | 9 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Loan | 5. Related Party Loan LAT Pharma was given a zero-interest bearing loan by the Company’s CEO, Jonathan Adams in the amount of $5,000 in August 2015 and $5,000 in November 2015. The total of $10,000 was outstanding when the Company merged with LAT Pharma. On June 16 th |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Office Lease On January 1, 2014 the Company executed a lease agreement with Cummings Properties for the Company’s office of 270 square feet at 100 Cummings Center, Suite 247-C, Beverly, MA 01915. The lease is for a term of five years from January 1, 2014 to December 30, 2018 and requires monthly payments of $379. Employment Agreements On April 11, 2016 the Company entered into employment agreement with CEO Jonathan Adams. The Company’s agreement provides for a three-year term with minimum annual base salary of $250,000 per year. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Related Party Transactions | 7. Related Party Transactions On March 23, 2017, Barrett Ehrlich agreed to defer the payment of his consulting fee debt of $173,333 until December 31, 2019, through the issuance of a Promissory note. The promissory note does not carry any interest charge as long as the amount is paid in full before December 31, 2019. The consulting fee debt has thereby been reclassified from a current liability to a long-term liability on the balance sheet. Any portion of the balance due under the note that remains unpaid after December 31, 2019 will accrue interest at a rate of 5% per annum until paid in full. On March 23, 2017, Elliot Ehrlich agreed to forgive 50% of his salary debt of $444,056. The adjusted salary debt is $222,028.13. Elliot Ehrlich also agreed to defer the payment of his salary debt of $222,028 until December 31, 2019, through the issuance of a Promissory note. The promissory note does not carry any interest charge as long as the amount is paid in full before December 31, 2019. The salary debt has thereby been reclassified from a current liability to a long-term liability on the balance sheet and the salary debt forgiven has been reflected on the income statement as other income. Any portion of the balance due under the note that remains unpaid after December 31, 2019 will accrue interest at a rate of 5% per annum until paid in full. On March 23, 2017, Jonathan Adams agreed to defer the payment of his salary debt of $180,555 until December 31, 2019, through the issuance of a Promissory note. The promissory note does not carry any interest charge as long as the amount is paid in full before December 31, 2019. The salary debt has thereby been reclassified from a current liability to a long-term liability on the balance sheet. Any portion of the balance due under the note that remains unpaid after December 31, 2019 will accrue interest at a rate of 5% per annum until paid in full. In January 2018, the Company sold an aggregate of 333,333 shares of common stock and warrants to purchase 333,333 shares of common stock to a member of its board of directors for aggregate gross proceeds of $50,000. The purchase price for the common stock and warrants was $0.15 per share. The warrants are exercisable at an exercise price of $0.15 at any time from date of issuance until 7 years from the date of issuance. The Company also issued 30,000 shares of common stock in exchange for services. The shares were valued at $0.13 per share, and the value of the services were $3,900. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Stock Options The fair market value of the stock options is estimated using the Black Scholes valuation model and the Company uses the following methods to determine its underlying assumptions: expected volatilities are based on the historical volatilities of 3 comparable companies of the daily closing price of their respective common stock; the expected term of options granted is based on the average time outstanding method; and the risk free interest rate is based on the US Treasury bonds issued with similar life terms to the expected life of the grant. During the nine months ended March 31, 2018, the Company issued stock options to consultants and board of directors for services provided to the Company. The following key assumptions were used in the valuation model to value stock option grants for each respective period: Weighted Weighed- Remaining Average Average Shares Exercise Contractual Options (Thousands) Price Term Outstanding at July 1, 2016 3,000 $ 0.06 Granted 1,000 $ 0.24 4 Outstanding at June 30, 2017 4,000 $ 0.10 4 Granted 1,250 $ 0.15 5 Outstanding at March 31, 2018 5,250 $ 0.12 5 Exercisable at March 31, 2018 5,250 $ 0.12 5 The fair value of options granted during the three months ended March 31, 2018 was estimated using the Black Scholes Method and the following assumptions: volatility - 124.7% to 143.46%; Term – 5 years; Risk Free Rate – 2.45% to 2.61%; dividend rate – 0.00%. The compensation expense for the nine months ended March 31, 2018 includes $16,443 related to the stock options described above. The future estimated compensation expense related to stock options is estimated to be $3,900 for the quarter ended June 30, 2018 and $10,135 for the year ended June 2018. The legal and professional expenses for the nine months ended March 31, 2018 includes $175,391 related to the stock options described above. Offerings of Common Stock and Warrants In July 2017 and August 2017, the Company sold and issued an aggregate of 886,364 shares of common stock and warrants to purchase 443,182 shares of common stock in a private placement transaction for aggregate gross proceeds of approximately $195,000. The purchase price for the common stock and warrants was $0.22 per share. The warrants are exercisable at an exercise price of $0.60 at any time from date of issuance until 5 years from the date of issuance. In August 2017, the Company issued 1,500,000 shares of common stock to Aspire Capital in exchange for services. The shares were valued at $0.22 per share, and the value of the services were $330,000. Between July 2017 and September 2017, the Company sold an aggregate of 250,000 shares of common stock in transactions under the Aspire Equity Line for aggregate gross proceeds of $50,000. The average purchase price for the common stock was $0.20 per share. In August 2017, the Company issued an aggregate of 32,727 shares of common stock to compensate certain initial investors who purchased common stock at a $0.25 share price in a Series C offering prior to a reduction in the offering price to $0.22 per share. In October 2017, the Company sold and issued an aggregate of 159,091 shares of common stock and warrants to purchase 79,545 shares of common stock in a private placement transaction for aggregate gross proceeds of approximately $35,000. The purchase price for the common stock and warrants was $0.22 per share. The warrants are exercisable at an exercise price of $0.60 at any time from date of issuance until 5 years from the date of issuance. In November 2017, the Company issued 150,000 shares of common in exchange for services. The shares were valued at $0.23 per share, and the value of the services were $34,500. The Company also sold and issued an aggregate of 68,182 shares of common stock and warrants to purchase 34,091 shares of common stock in a private placement transaction for aggregate gross proceeds of approximately $15,000. The purchase price for the common stock and warrants was $0.22 per share. The warrants are exercisable at an exercise price of $0.60 at any time from date of issuance until 5 years from the date of issuance. In November 2017, the Company extended the maturity date of stock options issued to the board of directors between November 2017 and November 2017 by 3 years. The Company recorded an incremental expense of $79,491. 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 purchase price for the warrants were $0.04 per warrant. The warrants are exercisable at an exercise price of $0.20 at any time from date of issuance until 7 years from the date of issuance. In January 2018, the Company sold an aggregate of 333,333 shares of common stock and warrants to purchase 333,333 shares of common stock to a member of its board of directors for aggregate gross proceeds of $50,000. The purchase price for the common stock and warrants was $0.15 per share. The warrants are exercisable at an exercise price of $0.15 at any time from date of issuance until 7 years from the date of issuance. The Company also issued 30,000 shares of common stock in exchange for services. The shares were valued at $0.13 per share, and the value of the services were $3,900. In January 2018, the company also issued 1,400,000 shares of common stock as compensation for the Board of Directors. The shares were valued at $0.15 per share, and the value of the compensation was $210,000. The Company also issued warrants to purchase 105,000 shares of common stock in exchange for services. The warrants are exercisable at an exercise price of $0.15 any time from the date of issuance until 7 years from the date of issuance. The warrants were valued at $9,444. In February 2018, the Company issued 600,000 shares of common stock in a private placement transaction in exchange for services. The shares were valued at $0.0475 per share, and the value of the services were $28,500. The Company also issued warrants to purchase 105,000 shares of common stock in a termination agreement. The warrants are exercisable at an exercise price of $0.15 any time from the date of issuance until 7 years from the date of issuance. The warrants were valued at $3,025. The following table summarizes the warrants that have been issued: Weighted Average Weighted Average Number of Shares Exercise Price Remaining Life (Years) Outstanding at June 30, 2017 6,173,864 $ 0.50 0.7 Granted 3,600,150 $ 0.22 6.3 Outstanding at March 31, 2018 9,774,014 $ 0.40 2.8 The following table summaries the stock option information as of March 31, 2018 Weighted Average Contract Exercise Price Outstanding Life Exercisable $ 0.06 3,100,000 No expiration 1,100,000 $ 0.10 500,000 4.8 500,000 $ 0.20 200,000 4.5 200,000 $ 0.21 550,000 4.1 550,000 $ 0.22 100,000 4.0 100,000 $ 0.23 200,000 4.4 200,000 $ 0.25 500,000 3.6 500,000 Total 5,150,000 4.2 3,150,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Event On March 29, 2018, the Company received a short-term convertible loan in the amount of $30,000 from Mr. Cuong Do, who is a member of its Board of Directors. Under the terms of the loan, BioVie must repay the principle amount of the loan in full plus simple interest of 10 percent not later than . BioVie also has the right, instead, at any time up to and including the maturity date of the loan, to convert the outstanding balance of the loan into BioVie stock to be issued to Mr. Do at a conversion price of 2.5 cents per share. Alternatively, Mr. Do also has the right to require such conversion during that same period of time by forgoing the accrued interest. On April 25, 2018, the Company received a short-term convertible loan in the amount of $100,000 from Mr. Cuong Do, who is a member of its Board of Directors. Under the terms of the loan, BioVie must repay the principle amount of the loan in full plus simple interest of 10 percent not later than . BioVie also has the right, instead, at any time up to and including the maturity date of the loan, to convert the outstanding balance of the loan into BioVie stock to be issued to Mr. Do at a conversion price of 2.5 cents per share. Alternatively, Mr. Do also has the right to require such conversion during that same period of time by forgoing the accrued interest. 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 On May 9, 2018, the Company received a short-term convertible loan in the amount of $30,000 from Mr. James Lang, who is a member of its Board of Directors. Under the terms of the loan, BioVie must repay the principle amount of the loan in full plus simple interest of 10 percent not later than . BioVie also has the right, instead, at any time up to and including the maturity date of the loan, to convert the outstanding balance of the loan into BioVie stock to be issued to Mr. Lang at a conversion price of 2.5 cents per share. Alternatively, Mr. Lang also has the right to require such conversion during that same period of time by forgoing the accrued interest. |
Significant Accounting Polici15
Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Statements | Unaudited Interim Financial Statements The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with a reading of the Company’s form 10-K filed with the SEC on August 24, 2017. In the opinion of management, all adjustments consisting of normal recurring entries necessary for a fair statement of the periods presented for: (a) the financial position; (b) the result of operations; and (c) cash flows, have been made in order to make the financial statements presented not misleading. The results of operations for such interim periods are not necessarily indicative of operations for a full year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash | Cash Cash is maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. All of the Company’s cash balances were fully insured at March 31, 2018. |
Financial Instruments | Financial Instruments The Company’s financial instruments include cash and accounts payable. The carrying amounts of cash and accounts payable approximate their fair value, due to the short-term nature of these items. |
Research and Development | Research and Development Research and development costs are charged to operations when incurred and are included in operating expenses. The Company expensed $275,116 for research and development for the nine months ended March 31, 2018. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities arise from temporary differences associated with differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates, which are expected to be in effect when these differences reverse. Deferred tax assets and liabilities are classified as current or non-current, depending on the classification of the assets or liabilities to which they relate. Deferred tax assets and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The Company follows the provisions of FASB ASC 740-10 “ Uncertainty in Income Taxes |
Earnings (Loss) per Share | Earnings (Loss) per Share Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive options outstanding during the year. For the nine months ended March 31, 2018 all outstanding options have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive. The table below shows the number of outstanding options and shares as of March 31,2018. Number of Shares (Thousands) Stock Options 5,150 Warrants 9,774 Total 14,924 |
Stock-based Compensation | Stock-based Compensation The Company has accounted for stock-based compensation under the provisions of FASB ASC 718 – “Stock Compensation” which requires the use of the fair-value based method to determine compensation for all arrangements under which employees and others receive shares of stock or equity instruments (stock options and common stock purchase warrants). For employee awards, the fair value of each stock option award is estimated on the date of grant using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. For non-employees, the fair value of each stock option award is estimated on the measurement date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. For non-employees, the Company utilizes the graded vesting attribution method under which the entity treats each separately vesting portion (tranche) as a separate award and recognizes compensation cost for each tranche over its separate vesting schedule. Expected volatilities are based on historical volatility of peer companies and other factors estimated over the expected term of the stock options. For employee awards, the expected term of options granted is derived using the “simplified method” which computes expected term as the average of the sum of the vesting term plus the contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. |
Fair Value Measurements | Fair Value The carrying value of the Company’s financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accrued payroll, accounts payable, accrued expenses and related party advances. |
Goodwill | Goodwill Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of net identified tangible and intangible assets acquired. The Company performs an annual impairment test of goodwill and further periodic tests to the extent indicators of impairment develop between annual impairment tests. The Company’s impairment review process compares the fair value of the reporting unit to its carrying value, including the goodwill related to the reporting unit. To determine the fair value of the reporting unit, the Company may use various approaches including an asset or cost approach, market approach or income approach or any combination thereof. These approaches may require the Company to make certain estimates and assumptions including future cash flows, revenue and expenses. These estimates and assumptions are reviewed each time the Company tests goodwill for impairment and are typically developed as part of the Company’s routine business planning and forecasting process. While the Company believes its estimates and assumptions are reasonable, variations from those estimates could produce materially different results. The Company did not recognize any goodwill impairments for the year ended June 30 th |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its undiscounted estimated future cash flows, an impairment review is performed. An impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Generally, fair value is determined using valuation techniques such as expected discounted cash flows or appraisals, as appropriate. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated or amortized. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Recent accounting pronouncements | Recent accounting pronouncements The Company has reviewed recent accounting pronouncements issued by the FASB (including its EITF), the AICPA, and the SEC and did not or are not believed by management to have a material impact on the Company’s financial statements. |
Significant Accounting Polici16
Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Significant Accounting Policies Tables | |
Schedule of outstanding options and shares | The table below shows the number of outstanding options and shares as of March 31,2018. Number of Shares (Thousands) Stock Options 5,150 Warrants 9,774 Total 14,924 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Intangible Assets Tables | |
Schedule of Intangible Assets | The following is a summary of the intangible assets as of March 31, 2018 and 2017. March 31, 2018 June 30, 2017 Intangible Assets subject to Amortization $ 2,013,357 $ 2,242,733 Accumulated Amortization $ 172,033 $ 229,376 Intangible Assets (Net of Amortization $ 1,841,324 $ 2,013,357 |
Schedule of future expected Amortization of intangible assets | Future expected Amortization of intangible assets is as follows: Year Ending June 30, 2018 (Remaining in Year) $ 57,344 2019 $ 229,376 2020 $ 229,376 2021 $ 229,376 2022 $ 229,376 Thereafter $ 866,473 $ 1,841,324 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Stockholders Equity Tables | |
Schedule of Stock option Issued | Weighted Weighed- Remaining Average Average Shares Exercise Contractual Options (Thousands) Price Term Outstanding at July 1, 2016 3,000 $ 0.06 Granted 1,000 $ 0.24 4 Outstanding at June 30, 2017 4,000 $ 0.10 4 Granted 1,250 $ 0.15 5 Outstanding at March 31, 2018 5,250 $ 0.12 5 Exercisable at March 31, 2018 5,250 $ 0.12 5 |
Schedule of Warrants Issued | The following table summarizes the warrants that have been issued: Weighted Average Weighted Average Number of Shares Exercise Price Remaining Life (Years) Outstanding at June 30, 2017 6,173,864 $ 0.50 0.7 Granted 3,600,150 $ 0.22 6.3 Outstanding at March 31, 2018 9,774,014 $ 0.40 2.8 |
Schedule of Stock Options | The following table summaries the stock option information as of March 31, 2018 Weighted Average Contract Exercise Price Outstanding Life Exercisable $ 0.06 3,100,000 No expiration 1,100,000 $ 0.10 500,000 4.8 500,000 $ 0.20 200,000 4.5 200,000 $ 0.21 550,000 4.1 550,000 $ 0.22 100,000 4.0 100,000 $ 0.23 200,000 4.4 200,000 $ 0.25 500,000 3.6 500,000 Total 5,150,000 4.2 3,150,000 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Notes to Financial Statements | ||||
Net Loss | $ 692,557 | $ 178,495 | $ 1,858,080 | $ 887,637 |
Working Capital Deficit | $ 1,055,676 | $ 1,055,676 |
Significant Accounting Polici20
Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Significant Accounting Policies Details Narrative | ||||
Research and development expenses | $ 46,420 | $ 120,043 | $ 275,116 | $ 375,872 |
Significant Accounting Polici21
Significant Accounting Policies (Details) | Mar. 31, 2018shares |
No. Of Shares Outstanding | 14,924 |
Stock Option [Member] | |
No. Of Shares Outstanding | 5,150 |
Warrant [Member] | |
No. Of Shares Outstanding | 9,774 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Intangible Assets Details | |||||
Intangible Assets subject to Amortization | $ 2,013,357 | $ 2,013,357 | $ 2,242,733 | ||
Amortization Expense for Quarter | 57,344 | $ 57,344 | 172,033 | $ 172,033 | 229,376 |
Accumulated Amortization at Quarter end | $ 1,841,324 | $ 1,841,324 | $ 2,013,357 |
Intangible Assets (Details 2)
Intangible Assets (Details 2) | Mar. 31, 2018USD ($) |
Intangible Assets Details 2 | |
2018 (Remaining in Year) | $ 57,344 |
2,019 | 229,377 |
2,020 | 229,377 |
2,021 | 229,377 |
2,022 | 229,377 |
Thereafter | 866,473 |
Total | $ 1,841,324 |
Related Party Loan (Details Nar
Related Party Loan (Details Narrative) - USD ($) | Jun. 16, 2017 | Nov. 30, 2015 | Aug. 31, 2015 | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Loan Repaid | $ 35,000 | $ 10,000 | ||||
Jonathan Adams [Member] | ||||||
Loan Received | $ 25,000 | $ 5,000 | $ 5,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) | 1 Months Ended |
Jun. 30, 2017USD ($) | |
Notes to Financial Statements | |
Lease rental | $ 379 |
Lease term (in years) | 5 years |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Option Outstanding at end of period | 5,150,000 | 5,150,000 | |
Option Excersiable at end of period | 3,150,000 | 3,150,000 | |
Excersiable Weighted Average Remaining Life at the end | 4 years 2 months 12 days | ||
StockOptionThreeMember | |||
Option Outstanding at end of period | 200,000 | 200,000 | |
Option Excersiable at end of period | 200,000 | 200,000 | |
Excersiable Weighted Average Remaining Life at the end | 4 years 6 months | ||
StockOptionSixMember | |||
Option Outstanding at end of period | 200,000 | 200,000 | |
Option Excersiable at end of period | 200,000 | 200,000 | |
Excersiable Weighted Average Remaining Life at the end | 4 years 4 months 24 days | ||
StockOptionFiveMember | |||
Option Outstanding at end of period | 100,000 | 100,000 | |
Option Excersiable at end of period | 100,000 | 100,000 | |
Excersiable Weighted Average Remaining Life at the end | 4 years | ||
StockOptionFourMember | |||
Option Outstanding at end of period | 550,000 | 550,000 | |
Option Excersiable at end of period | 550,000 | 550,000 | |
Excersiable Weighted Average Remaining Life at the end | 4 years 1 month 6 days | ||
StockOptionTwoMember | |||
Option Outstanding at end of period | 500,000 | 500,000 | |
Option Excersiable at end of period | 500,000 | 500,000 | |
Excersiable Weighted Average Remaining Life at the end | 4 years 9 months 18 days | ||
StockOptionSevenMember | |||
Option Outstanding at end of period | 500,000 | 500,000 | |
Option Excersiable at end of period | 500,000 | 500,000 | |
Excersiable Weighted Average Remaining Life at the end | 3 years 7 months 6 days | ||
Warrant [Member] | |||
Option Outstanding at beginning of period | 6,173,864 | ||
Option Granted | 3,600,150 | ||
Option Outstanding at end of period | 9,774,014 | 9,774,014 | |
Outstanding Weighted Average Exercise Price at the beginning | $ .50 | ||
Weighted Average Exercise Price, Granted | .22 | ||
Outstanding Weighted Average Exercise Price at the end | $ 0.40 | $ 0.40 | |
Weighted Average Remaining Life at the beginning | 8 months 12 days | ||
Weighted Average Remaining Life Exercise Price, Granted | 6 years 3 months 18 days | ||
Weighted Average Remaining Life at the end | 2 years 9 months 18 days | ||
Stock Option [Member] | |||
Option Outstanding at beginning of period | 4,000 | 4,000 | 3,000 |
Option Granted | 1,250 | 1,000 | |
Option Outstanding at end of period | 5,250 | 5,250 | 4,000 |
Option Excersiable at end of period | 5,250 | 5,250 | |
Outstanding Weighted Average Exercise Price at the beginning | $ .10 | $ .10 | $ .06 |
Weighted Average Exercise Price, Granted | .15 | .24 | |
Outstanding Weighted Average Exercise Price at the end | .12 | .12 | $ .10 |
Excersiable Weighted Average Exercise Price at the end | $ .12 | $ .12 | |
Weighted Average Remaining Life at the beginning | 4 years | ||
Weighted Average Remaining Life Exercise Price, Granted | 5 years | 4 years | |
Weighted Average Remaining Life at the end | 5 years | 4 years | |
Excersiable Weighted Average Remaining Life at the end | 5 years | ||
StockOptionOneMember | |||
Option Outstanding at end of period | 3,100,000 | 3,100,000 | |
Option Excersiable at end of period | 1,100,000 | 1,100,000 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Outstanding | 5,150,000 | 5,150,000 | |||
Weighted Average Contract Life | 4 years 2 months 12 days | ||||
Exercisable | 3,150,000 | 3,150,000 | |||
StockOptionSixMember | |||||
Exercise Price | $ 0.23 | $ 0.23 | |||
Outstanding | 200,000 | 200,000 | |||
Weighted Average Contract Life | 4 years 4 months 24 days | ||||
Exercisable | 200,000 | 200,000 | |||
StockOptionTwoMember | |||||
Exercise Price | $ 0.1 | $ 0.1 | |||
Outstanding | 500,000 | 500,000 | |||
Weighted Average Contract Life | 4 years 9 months 18 days | ||||
Exercisable | 500,000 | 500,000 | |||
StockOptionThreeMember | |||||
Exercise Price | $ 0.2 | $ 0.2 | |||
Outstanding | 200,000 | 200,000 | |||
Weighted Average Contract Life | 4 years 6 months | ||||
Exercisable | 200,000 | 200,000 | |||
StockOptionFourMember | |||||
Exercise Price | $ 0.21 | $ 0.21 | |||
Outstanding | 550,000 | 550,000 | |||
Weighted Average Contract Life | 4 years 1 month 6 days | ||||
Exercisable | 550,000 | 550,000 | |||
StockOptionFiveMember | |||||
Exercise Price | $ 0.22 | $ 0.22 | |||
Outstanding | 100,000 | 100,000 | |||
Weighted Average Contract Life | 4 years | ||||
Exercisable | 100,000 | 100,000 | |||
StockOptionSevenMember | |||||
Exercise Price | $ 0.25 | $ 0.25 | |||
Outstanding | 500,000 | 500,000 | |||
Weighted Average Contract Life | 3 years 7 months 6 days | ||||
Exercisable | 500,000 | 500,000 | |||
Stock Option [Member] | |||||
Outstanding | 5,250 | 5,250 | 4,000 | 4,000 | 3,000 |
Weighted Average Contract Life | 5 years | ||||
Exercisable | 5,250 | 5,250 | |||
StockOptionOneMember | |||||
Exercise Price | $ 0.06 | $ 0.06 | |||
Outstanding | 3,100,000 | 3,100,000 | |||
Exercisable | 1,100,000 | 1,100,000 | |||
Warrant [Member] | |||||
Outstanding | 9,774,014 | 9,774,014 | 6,173,864 |