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

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 is included in the determination of
the lease term and lease payment obligations when it is deemed reasonably certain that the option will be exercised. When available,
the Company uses the rate implicit in the lease to discount lease payments to present value; however, certain leases do not provide a
readily determinable implicit rate. Therefore, the Company must estimate our incremental borrowing rate to discount the lease payments
based on information available at lease commencement.

The
Company classifies its leases as buildings, vehicles or computer and office equipment and do not separate lease and non-lease components
of contracts for any of the aforementioned classifications. In accordance with applicable guidance, the Company does not record leases
with terms that are less than one year on the consolidated balance sheets.

None
of the lease agreements contain material restrictive covenants or residual value guarantees.

Buildings

The
Company entered into an 84eighty-four-month lease for 3,577 square feet of newly constructed office, laboratory, and warehouse space located
in Edina, Minnesota in May 2017. The base rent has annual increases of 2% and the Company is responsible for its proportional share of
common space expenses, property taxes, and building insurance. This lease is terminable by the landlord if damage causes the property
to no longer be utilized as an integrated whole and by the Company if damage causes the facility to be unusable for a period of 45 days.
In January 2020, the Company entered into a lease amendment to extend the lease term through November of 2026 in exchange for receipt
of a loan of $42,500 recorded to note payable. The monthly base rent as of June 30, 2025, and March 31, 2025, was $2,386.

    17

The
Company entered into a 63sixty-three-month lease for 2,400 square feet of office space located in Edina, Minnesota in January 2022. This
lease will expire in March 2027. The base rent has annual increases of 2.5% and the Company is responsible for its proportional share
of common space expenses, property taxes, and building insurance. The monthly base rent as of June 30, 2025, and March 31, 2025, was
$2,879.

On
January 10, 2023, the Company entered into a new lease agreement for approximately 14,000 square feet of production and warehouse space
with a commencement date of April