Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 106

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1
Chunk 106
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 to the
Company’s own stock due to variable pricing provisions. As a result, the embedded conversion features were bifurcated and accounted
for as derivative liabilities under ASC 815.

For each note with a derivative liability, the fair value of the derivative at inception was recorded as a discount to the carrying value
of the note and is being amortized to interest expense over the term of the note using the effective interest method. The fair values
of the derivative liabilities at inception dates of the notes and at March 31, 2025 were estimated using a binomial option pricing model
with the following key inputs: closing stock price at Note inception dates and at March 31, 2025, strike price of $0.50, since this was
lower than the $1.00 per share price at which the Company sold shares in a Qualified Financing, term based on the remaining days to maturity
date, volatility rates between 87.1% - 139.3% at inception dates of notes and 81.2% - 115.6% at March 31, 2025, risk-free rate rates between
4.14% - 5.18% at inception dates of notes and 4.08% at March 31, 2025, and dividend yield of zero. The fair value of the derivative liabilities
at inception and March 31, 2025 was $341,576 and $448,089. The Company recognized an unrealized loss on the change in fair value of derivative
liabilities of $106,513 and $0 for the years ended March 31, 2025 and 2024, respectively, . Interest expense related to the amortization
of the debt discounts associated with derivative liabilities was $285,563 and $0 for the years ended March 31, 2025 and 2024, respectively.

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 were determined to be equity-classified
instruments. The fair value of the warrants at inception was recorded as 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