Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 986

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 7A
Chunk 986
---
 net operating loss carryforwards of approximately $44,300,000 and
$37,500,000.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in
which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the
projected future taxable income and tax planning strategies in making this assessment. Based on management’s analysis, they
concluded not to retain a deferred tax asset since it is uncertain whether the Company can utilize this asset in future periods.
Therefore, they have established a full reserve against this asset. The change in the valuation allowance during the years ended
March 31, 2025 and 2024 was approximately $2,279,000 and
$3,037,000,
respectively. The net operating loss carryforwards prior to 2019, if not utilized, generally expire twenty years from the date the loss was
incurred, and losses incurred after 2019 are carried forward indefinitely and subject to annual limitations for
federal and Minnesota purposes.

Of
the approximately $44,300,000 in net operating loss carryforwards, approximately $7,000,000 has been accumulated in our pre-merger operating
subsidiary, Gel-Del Technologies, Inc. IRC 382 provides guidance around whether or not the Company is able to utilize the pre-merger
Gel-Del Technologies, Inc. net operating loss of approximately $7,000,000. Management is currently analyzing whether or not these pre-merger
dollars will be allowable if our deferred tax asset is ever realized.

The reconciliation of the statutory federal rate to the Company’s effective income tax rate is as follows:

 SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION

    2025  
    2024 
  
    Tax benefits at statutory rate 
     21.0% 
     21.0%
  
    State income tax benefit, net of federal 
     7.7% 
     7.7%
  
    Gross Effective Rate 
     28.7% 
     28.7%
  
    Valuation allowance 
     (28.7%) 
     (28.7%)
  
    Net effective rate 
     -  
     - 

The
Company’s continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As
of March 31,