Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 1321

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 9B
Chunk 1321
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    Valuation allowance 
     (14,678,000) 
     (12,399,000)
  
    Net deferred tax assets 
    $-  
    $- 

    F-25

Current
income taxes are based upon the year’s income taxable for federal and state tax reporting purposes. Deferred income taxes (benefits)
are provided for certain income and expenses, which are recognized in different periods for tax and financial reporting purposes.

Deferred
tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that
will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the period in which the
differences are expected to affect taxable income. The Company’s deferred income taxes arise from the temporary differences between
financial statement and income tax recognition of net operating losses. These loss carryovers would be limited under the Internal Revenue
Code should a significant change in ownership occur within a three-year period.

At
March 31, 2025 and 2024, respectively, the Company had 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,