Company: PETVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001493152-25-011967
Chunk: 24

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
---
 three
months ended June 30, 2025 and 2024, respectively.

    16

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
10 – 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 three months ended June 30, 2025, and 2024, the
Company made contributions to the plan of $15,879 and $12,690, respectively.

NOTE
11 – 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 reasonable 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 guarantee.

Lease
Obligations

The
Company leases 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 the Company has the right
to direct the use of and obtain substantially all of the economic benefit from the use of the identified asset. The Company records 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 the Company’s discretion and