Company: PETVW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023398
Chunk: 24

Company: PetVivo Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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3,669,806
shares of common stock, with a fair value of $2,018,154, for
conversion of the convertible notes in the amount of $1,850,000 and accrued interest of $168,154.

On September 30, 2025, the Company repaid a $25,000
convertible promissory note, dated December 20, 2024, and accrued interest of $2,334.

Interest
expense on these convertible notes payable for the three months ended September 30, 2025 and 2024 is $69,622
and $1,342,
respectively. Interest expense for the six months ended September 30, 2025 and 2024 is $113,467
and $2,736,
respectively.

     16 

June
30, 2025 Amendment to Convertible Notes and Extinguishment Accounting

On
June 30, 2025, the Company and the noteholders entered into an amendment to fix the Conversion Price at $0.50 per share, eliminate the
variable pricing feature, and change all maturity dates to September 30, 2025. As a result of the amendment, the conversion feature no
longer required derivative liability accounting under ASC 815 and instead met the criteria for equity classification under ASC 470-20,
Debt with Conversion and Other Options.

The
Company evaluated the amendment under ASC 470-50, Modifications and Extinguishments, and concluded that the amendment represented a substantial
modification due to the reclassification of the conversion feature from a liability to equity and the resulting change in economic substance.
Accordingly, the Company accounted for the amendment as an extinguishment of the existing notes and the issuance of new convertible notes.

Prior
to extinguishment, the derivative liability was remeasured to its fair value at June 30, 2025 of $768,493, resulting in a loss of $320,404,
which was recognized in other income (expense), net. Upon extinguishment, the derivative liability of $768,493 was reclassified to additional
paid-in capital.

The
new debt instrument issued upon extinguishment was recorded at its estimated fair value of $1,215,000. The Company recognized a beneficial
conversion feature (“BCF”) of $763,259, calculated as the intrinsic value of the fixed conversion option on the commitment
date (based on the excess of the Company’s closing stock price of $0