Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 868

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 7
Chunk 868
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 are satisfied. Product sales
occur once control or title is transferred based on the commercial terms. Revenue is recognized upon delivery to the customer, which
is when control of these products is transferred and in an amount that reflects the consideration the Company expects to receive for
these products. Shipping costs charged to customers are reported as an offset to the respective shipping costs. The Company does not
have any significant financing components as payment is received at or shortly after the point of sale.

The
Company entered into a Distribution Services Agreement (the “Agreement”) with MWI Veterinary Supply Co. (the
“Distributor”) on June 17, 2022. Contracts with the Distributor are evidenced by individual executed purchase orders
subject to the terms of the Agreement. The contracts consist of a single performance obligation related to the sale of our pet care
products. Product sales occur once control or title is transferred based on the commercial terms in the Agreement. Revenue is
recognized upon delivery to the Distributor; payment is due within 60 days. The Agreement provides for a distribution fee payable to
the Distributor equal to 5%
of gross monthly sales payable in 45 days; the distribution fee is netted against revenue. The Agreement provides for a rebate
payable to the Distributor based on annual sales volume that is retroactively applied. The rebate is estimated under the expected
value method and is netted against revenue. Sales are subject to various right of return provisions; the Company uses an expected
value method to estimate returns and has determined that any returns would be immaterial as of March 31, 2025 and 2024. As a result, there
is no return liability recorded. Shipping and handling costs are a fulfillment activity and are reported as cost of sales. In March
2025, the Company mutually terminated its non-exclusive distribution agreement with MWI.

For
the years ended March 31, 2025 and 2024, the Company recognized revenue from product sales under the Agreement of $430,818 and $626,176,
respectively. This represents 38% and 65% of total revenues for the years ended March 31, 2025 and 2024, respectively.

Assets
and liabilities (included in accrued expenses) under the Agreement were as follows:

 SCHEDULE OF RECOGNIZED REVENUE ASSETS AND LIABILITIES

    March
                                            31, 2025  
    March
    31, 2024