Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 107

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 107
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 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 $5,053 and $0 for the years ended
March 31, 2025 and 2024, respectively.

Fair
Value Allocation of Proceeds from Convertible Notes

When
convertible notes are issued with warrants, and no derivative liability is present, the proceeds are allocated between the debt and the
warrants based on their relative fair values at issuance. When convertible notes are issued with both detachable warrants and embedded
derivative liabilities, the proceeds are allocated using a sequential approach: first to the derivative liability at fair value, then
to the warrants at fair value, and the residual amount to the debt host. For convertible notes that include only an embedded derivative
liability and no warrants, the proceeds are allocated first to the derivative liability at fair value, with the residual amount allocated
to the debt host.

NOTE
11 – RETIREMENT PLAN

In
February 2021, the Company established a 401(k) retirement plan for its employees in which eligible employees can contribute a percentage
of their compensation. The Company may also make discretionary contributions. For the years ended March 31, 2025 and 2024, the Company
made contributions to the plan of $58,575 and $51,441, respectively.

NOTE
12 – COMMITMENTS AND CONTINGENCIES

The Company accounts for contingencies in accordance with ASC 450, Contingencies. A liability is recorded when it
is probable that a loss has been incurred and the amount can be reasonably estimated. If a loss is reasonably possible but not probable,
or if the amount cannot be estimated, the nature of the contingency and an estimate of the possible loss, if determinable, is disclosed.
Remote contingencies are generally not disclosed unless related to guarantees.

Lease
Obligations

We
lease property and equipment under operating leases, typically with terms greater than 12 months, and determine if an arrangement contains
a lease at inception. In general, an arrangement contains a lease if there is an identified asset and we have the right to direct the