Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 791

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 6
Chunk 791
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 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
use of and obtain substantially all of the economic benefit from the use of the identified asset. We record an operating lease liability
at the present value of lease payments over the lease term on the commencement date. The related right of use (‘‘ROU”)
operating lease asset reflects rental escalation clauses, as well as renewal options and/or termination options. The exercise of lease
renewal and/or termination options is at our discretion and 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, we use 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, we must estimate
our incremental borrowing rate to discount the lease payments based on information available at lease commencement.

We
classify our 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, we do not record leases with terms that are less
than one year on the Consolidated Balance Sheets.

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

Buildings

The
Company entered into an 84
eighty-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 unus