Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 158

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1A
Chunk 158
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 to investors.

GOING
CONCERN

The
independent auditors’ report accompanying our March 31, 2025, Form 10-K and financial statements contains an explanatory paragraph
expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared assuming that
we will continue as a going concern, which contemplates that we will realize our assets and satisfy our liabilities and commitments in
the ordinary course of business. On March 26, 2025, the Company entered into a Subscription Agreement for $5,000,000 in a Series B Preferred Offering,
whereby $600,000 was received, with the remaining $4,400,000 proceeds received in May and June 2025. Our
working capital at March 31, 2025 was $1,591,212.

CRITICAL
ACCOUNTING POLICIES

We
prepare our consolidated financial statements in accordance with generally accepted accounting standards in the United States of America.
Our significant accounting policies are described in Note 1 to our consolidated financial statements attached hereto. We believe the
following critical accounting policies involve the most significant judgments and estimates used in the preparation of the consolidated
financial statements.

30

RECENTLY
ISSUED ACCOUNTING STANDARDS

The
Company has reviewed the FASB issued ASU accounting pronouncements and interpretations thereof that have effective dates during the periods
reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting
principles and do not believe that any new or modified principles will have a material impact on the Company’s reported financial
position or operations in the near term. The applicability of any standard is subject to formal review of the Company’s financial
management.

In
August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging
- Contracts in Entity’s Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts on an Entity’s
Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP.
Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded
conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative
scope exception, which will permit more equity contracts to qualify for