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

Company: PetVivo Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 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 nonlease 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 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 unusable for a period of 45 days.
In January 2020, the Company entered into a lease amendment to extend the lease term through November of 2026 in exchange for receipt
of a loan of $42,500 recorded to note payable. The monthly base rent as of December 31, 2024, and March 31, 2024, was $2,340.

The
Company entered into a sixty-three month lease for 2,400 square feet of office space located in Edina, Minnesota in January 2022. This
lease will expire in March 2027. The base rent has annual increases of 2.5% and the Company is responsible for its proportional share
of common space expenses, property taxes, and building insurance. The monthly base