Company: PETVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001493152-25-011967
Chunk: 23

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 31, 2025, and 4.41% at June 30, 2025, and dividend yield of zero.

The
new debt instrument was recorded at its estimated fair value of $1,215,000,
and the Company recognized a beneficial conversion feature (BCF) of $763,259 fair value,
calculated as the intrinsic value of the fixed conversion option on the commitment date (i.e., the excess of the Company’s
closing stock price of $0.80 over the
fixed conversion price of $0.50,
multiplied by the number of shares issuable upon conversion). The BCF was recorded as a debt discount and an increase to additional
paid-in capital. The debt discount is being amortized to interest expense over the remaining term of the note using the effective
interest method.

The
accounting impact of the amendment is summarized as follows:

 SCHEDULE OF AMENDMENT TO CONVERTIBLE NOTES AND EXTINGUISHMENT ACCOUNTING

    Description 
    Amount 
  
    Carrying amount of extinguished
    debt 
    $1,215,000 
  
    Fair value of new debt issued 
    $1,215,000 
  
    Fair value of derivative reclassified to equity 
    $768,493 
  
    Beneficial conversion feature recorded as debt
    discount 
    $763,259 

Convertible
Notes Issued with Warrants

On
February 14, 2025, a total of 250,000 warrants were issued for two Notes totalling $500,000. The warrants have a three-year term with
an exercise strike price of $0.90 per share. The warrants were evaluated under ASC 480 and ASC 815 and determined to be equity-classified
instruments. The fair value of the warrants at inception was recorded at a discount to the carrying value of the associated notes and
is being amortized to interest expense over the term of the notes using the effective interest method. The fair value at issuance was
estimated using the binomial option pricing model with the following inputs: closing stock price of $0.74, strike price of $0.90, 3-year
term, volatility rate of 113.7%, risk-free rate of 4.26%, and dividend yield of zero. The fair value of the warrants at inception was
$98,684. Interest expense related to the amortization of the debt discounts associated with warrants was $10,246 and $0 for the