Company: PETVW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023398
Chunk: 25

Company: PetVivo Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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.80 over the fixed conversion price of $0.50, multiplied by
the number of shares issuable upon conversion). The BCF was recorded as a debt discount with a corresponding increase to additional paid-in
capital. The debt discount is being amortized using the effective interest method.

The
accounting impact of the amendment is summarized as follows, as of June 30, 2025:

SCHEDULE OF AMENDMENT TO CONVERTIBLE NOTES AND EXTINGUISHMENT ACCOUNTING 

    Description 
    Amount 
  
    Carrying amount of extinguished debt 
    $1,215,000 
  
    Fair value of new debt issued 
    $1,215,000 
  
    Fair value of derivative reclassified to equity 
    $768,493 
  
    Beneficial conversion feature recorded as debt discount 
    $763,259 

As
of September 30, 2025, the beneficial conversion feature recorded as debt discount on the convertible notes and related warrants were
fully amortized during the period, as the notes matured and were converted on September 30, 2025. For the three and six months ending
September 30, 2025, the amortization of debt discount expense was $107,034
and $936,552.

Convertible
Notes Issued with Warrants

On
February 14, 2025, a total of 250,000 warrants
were issued for two Notes totaling $500,000.
The warrants have a three year term with an exercise strike price of $0.90 per
share. The warrants were evaluated under ASC 480 and ASC 815 and determined to be equity-classified instruments. The fair value of
the warrants at inception was recorded at a discount to the carrying value of the associated notes and is being amortized to
interest expense over the term of the notes using the effective interest method. The fair value at issuance was estimated using the
binomial option pricing model with the following inputs: closing stock price of $0.74,
strike price of $0.90, 3-year
term, volatility rate of 113.7%,
risk-free rate of 4.26%,
and dividend yield of zero.
The fair value of the warrants at inception was $98,684
and is being amortized over thirty-six months, until September 30, 2025 when the convertible notes were all converted
whereby the remaining balance of the debt discount for the warrants of $90,