Company: PETVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001493152-25-011967
Chunk: 21

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 for the quarter
ended June 30, 2025 and March 31, 2025 is $1,975,866
and $1,772,021.

Interest
expense for the three months ended June 30, 2025 and June 30, 2024 is $43,845 and $1,394, respectively.

Derivative
Liabilities – Variable Conversion Features

The
Company evaluated the terms of its convertible notes and determined that certain embedded conversion features were not indexed to the
Company’s own stock due to variable pricing provisions. As a result, the embedded conversion features were bifurcated and accounted
for as derivative liabilities under ASC 815.

For
each note with a derivative liability, the fair value of the derivative at inception was recorded as a discount to the carrying value
of the note and is being amortized to interest expense over the term of the note using the effective interest method. The fair values
of the derivative liabilities at inception dates of the notes, at March 31, 2025 and June 30, 2025 were estimated using a binomial option
pricing model with the following key inputs: closing stock price at Note inception dates, at March 31, 2025 and June 30, 2025, strike
price of $0.50, since this was lower than the $1.00 per share price at which the Company sold shares in a Qualified Financing, term based
on the remaining days to maturity date, volatility rates between 87.1% - 139.3% at inception dates of notes, 81.2% - 115.6% at March
31, 2025, and 82% - 82% at June 30, 2025, risk-free rate rates between 4.14% - 5.18% at inception dates of notes, 4.08% at March 31,
2025, and 4.41% at June 30, 2025, and dividend yield of zero. The fair value of the derivative liabilities at inception and March 31,
2025 was $341,576 and $448,089. The Company recognized an unrealized loss on the change in fair value of derivative liabilities
of $ 320,404 and $0 for the three months ended June 30, 2025 and 2024, respectively. Interest expense related to the amortization of
the debt discounts associated with derivative liabilities was $66,259