BIOVIE INC. Fair Value Disclosure
| 7. | Fair Value Measurements |
At June 30, 2025, there was no value ascribed to the derivative liabilities and as of June 30, 2024 the derivative liability related to warrants that was measured on a recurring basis was a level 3 liability and totaled $3,771.
The following table presents the activity for level 3 liabilities measured at fair value using unobservable inputs for the years ended June 30, 2025 and 2024:
| Derivative liability - Avenue Warrants | Derivative liability - Conversion Option | |||||||
| Balance at June 30, 2023 | $ | 894,280 | $ | 925,762 | ||||
| Additions to level 3 liabilities | ||||||||
| Change in fair value of level 3 liabilities | (890,509 | ) | (925,762 | ) | ||||
| Transfer in and/or out of level 3 | ||||||||
| Balance at June 30, 2024 | $ | 3,771 | $ | |||||
| Additions to level 3 liabilities | ||||||||
| Change in fair value of level 3 liabilities | (3,771 | ) | ||||||
| Transfer in and/or out of Level 3 | ||||||||
| Balance at June 30, 2025 | $ | $ | ||||||
The fair values of derivative liabilities for the Avenue Warrants and Conversion Option at June 30, 2024 in the accompanying balance sheet, were approximately $3,800 and zero, respectively. The total change in the fair value of the derivative liabilities totaled approximately $3,800 and $1.8 million for the years ended June 30, 2025, and 2024, respectively; and accordingly, was recorded in the accompanying statements of operations and comprehensive loss.
The assumptions used in the Black Scholes model to value the Avenue Warrants at June 30, 2025 included the closing stock price of $ per share; the exercise price of $, remaining term years, risk free rate of and volatility of .
The Conversion Option was nil as of June 30, 2025 and June 30, 2024 as the corresponding debt matured and was repaid in December 2024.
The assumptions used in the Black Scholes model to value the derivative liabilities at June 30, 2024 included the closing stock price of $ per share; for the Avenue Warrants, the exercise price of $, remaining term years, risk free rate of and volatility of ; and for the Conversion Option, the conversion price of $; remaining term of months, risk free rate of and volatility of .
Financial assets
As of June 30, 2025, investments in U.S. Treasury Bills were valued through use of quoted prices and are classified as Level 1. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories.
| Fair Value Measurements at | ||||||||||||||||
| June 30, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Cash | $ | 3,978,271 | $ | $ | $ | 3,978,271 | ||||||||||
| U.S. Treasury Bills due in 3 months or less at purchase | 13,566,276 | 13,566,276 | ||||||||||||||
| Total | $ | 17,544,547 | $ | $ | $ | 17,544,547 | ||||||||||
| Fair Value Measurements at | ||||||||||||||||
| June 30, 2024 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Cash | $ | 12,763,941 | $ | $ | $ | 12,763,941 | ||||||||||
| U.S. Treasury Bills due in 3 months or less at purchase | 11,079,857 | 11,079,857 | ||||||||||||||
| Total | $ | 23,843,798 | $ | $ | $ | 23,843,798 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 15, 2025 | Showing above |
| 2023 | Aug 16, 2023 | |
| 2022 | Sep 27, 2022 | |
| 2021 | Aug 30, 2021 | |
| 2020 | Aug 6, 2020 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.