Company: PETVW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006783
Chunk: 14

Company: PetVivo Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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occur once control or title is transferred based on the commercial terms. Revenue is recognized upon delivery to the customer, which
is when control of these products is transferred and in an amount that reflects the consideration the Company expects to receive for
these products. Shipping costs charged to customers are reported as an offset to the respective shipping costs. The Company does not
have any significant financing components as payment is received at or shortly after the point of sale.

    11

The
Company entered into a Distribution Services Agreement (the “Agreement”) with MWI Veterinary Supply Co. (the “Distributor”)
on June 17, 2022. Contracts with the Distributor are evidenced by individual executed purchase orders subject to the terms of the Agreement.
The contracts consist of a single performance obligation related to the sale of our pet care products. Product sales occur once control
or title is transferred based on the commercial terms in the Agreement. Revenue is recognized upon delivery to the Distributor; payment
is due within 60 days. The Agreement provides for a distribution fee payable to the Distributor equal to 5% of gross monthly sales payable
in 45 days; the distribution fee is netted against revenue. The Agreement provides for a rebate payable to the Distributor based on annual
sales volume that is retroactively applied. The rebate is estimated under the expected value method and is netted against revenue. Sales
are subject to various right of return provisions; the Company uses an expected value method to estimate returns and has determined that
any returns would be immaterial as of December 31, 2024. As a result, there is no return liability recorded. Shipping and handling costs
are a fulfillment activity and are reported as cost of sales.

For
the three months ended December 31, 2024, and 2023, the Company recognized revenue from product sales under the Agreement of $202,738
and $439,922, respectively. This represents 35% and 74% of total revenues for the three-month period ended December 31, 2024, and 2023,
respectively.

For
the nine months ended December 31, 2024, and 2023, the Company recognized revenue from product sales under the Agreement of $422,371
and $609,293, respectively. This represents 47% and 66% of total revenues for the nine months ended December 31, 2024, and 2023, respectively.

Assets
and liabilities (included