Company: PETVW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006783
Chunk: 19

Company: PetVivo Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 issued ASU accounting pronouncements and interpretations thereof that have effectiveness dates during the
periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted
accounting principles and does not believe that any new or modified principles will have a material impact on the Company’s reported
financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company’s
financial management.

In
fiscal year 2024, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to
as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable
to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance
sheet credit exposures not accounted for as insurance (e.g., loan commitments, standby letters of credit, financial guarantees, and other
similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326
amended the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance
rather than as a write-down on available-for-sale debt securities, that management does not intend to sell or believes that it is more
likely than not they will be required to sell.

Under
CECL, the Company estimates the allowance for credit losses using relevant available information, from both internal and external sources,
relating to past events, current conditions, and reasonable and supportable forecasts. The Company adopted this standard in the consolidated
financial statements for the nine months ended December 31, 2024. The change had no impact on the Company’s financial statements.

All
other newly issued but not yet effective accounting pronouncements have been deemed either immaterial or not applicable.

NOTE
2 – RECLASSIFICATION OF PRIOR YEAR PRESENTATION

Reclassification.
Certain prior period amounts have been reclassified to conform to current period presentation.

Certain
prior year amounts have been reclassified for consistency with the current year presentation in the Consolidated Statements of Operations
related to Total Cost of Sales to move certain research and development costs and added as an Operating Expense. There were no reclassifications
made to the Consolid