Company: PETVW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006783
Chunk: 17

Company: PetVivo Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The valuation
of the Company’s note recorded at fair value is determined using Level 3 inputs, which consider (i) time value, (ii) current market,
and (iii) contractual prices.

The
Company had no assets and liabilities measured at fair value on a recurring basis on December 31, 2024, and March 31, 2024.

(O)
Stock-Based Compensation - Non-Employees

Equity
Instruments Issued to Parties Other Than Employees for Acquiring Goods or Services

The Company has adopted ASC Topic 718, Accounting for Stock-Based Compensation
(ASC 718), which establishes a fair value-based method of accounting for stock-based compensation plans. In accordance with ASC 718, the
cost of stock-based awards issued to employees and non-employees over the awards' vest period is measured on the grant date based on the
fair value. The fair value is determined using the binomial option pricing model, which incorporates assumptions regarding the expected
volatility, expected option life and risk-free interest rate.

    13

The
fair value of stock options and similar instruments is estimated on the date of grant using a Black-Scholes option-pricing valuation
model. The ranges of assumptions for inputs are as follows:

●
Expected term of share options and similar instruments: Pursuant to ASC Paragraph 718-10-50-2(f)(2)(i), the expected term of stock options
and similar instruments represents the period of time the stock options and similar instruments are expected to be outstanding taking
into consideration of the contractual term of the instruments and holders’ expected exercise behavior into the fair value (or calculated
value) of the instruments. The Company uses historical data to estimate holders’ expected exercise behavior.

●
Expected volatility of the entity’s shares and the method used to estimate it. Pursuant to ASC Paragraph 718-10-50-2(f)(2)(ii),
a thinly traded or nonpublic entity that uses the calculated value method shall disclose the reasons why it is not practicable for the
Company to estimate the expected volatility of its stock price, the appropriate industry sector index that it has selected, the reasons
for selecting that particular index, and how it has calculated historical volatility using that index. The Company uses its average historical
volatility over the expected contractual life of the stock options or similar instruments as its expected volatility.

●
Expected annual rate of quarterly dividends