Company: PETVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001493152-25-011967
Chunk: 11

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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utor 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 June 30, 2025. As a result, there is no return liability recorded. Shipping and handling costs
are a fulfilment activity and are reported as cost of sales. In March 2025, the Company mutually terminated its non-exclusive distribution
agreement with MWI.

For
the three months ended June 30, 2025, and 2024, the Company recognized revenue from product sales under the Agreement of $0 and $50,684,
respectively. This represents 0% and 41% of total revenues for the three-month period ended June 30, 2025, and 2024, respectively.

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

 SCHEDULE OF RECOGNIZED REVENUE ASSETS AND LIABILITIES

    June
    30, 2025  
    March
    31, 2025 
  
    Accounts receivable 
    $-  
    $- 
  
    Rebate liability 
     57,264  
     57,264 
  
    Distribution fee payable 
     2,299  
     2,299 

The
Company entered into a Distribution Services Agreement (the “Agreement”) with Covetrus North America LLC (“Covetrus”)
on December 18, 2023. Contracts with Covetrus 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 1% of gross monthly sales payable
in 45 days; the distribution fee is netted against revenue. Sales are subject to various right of return provisions; the Company uses
an expected value method