Company: PETVW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006783
Chunk: 18

Company: PetVivo Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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. An entity that uses a method that employs different dividend rates during the contractual
term shall disclose the range of expected dividends used and the weighted-average expected dividends. The expected dividend yield is
based on the Company’s current dividend yield as the best estimate of projected dividend yield for periods within the expected
term of the share options and similar instruments.

●
Risk-free rate(s). An entity that uses a method that employs different risk-free rates shall disclose the range of risk-free rates used.
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected
term of the share options and similar instruments.

(P)
Stock-Based Compensation

Stock
options are valued using the Black-Scholes option-pricing model. The Black Scholes valuation model requires the input of highly subjective
assumptions. The assumptions include the expected term of the option, the expected volatility of the price of our common stock, the expected
dividend yield, and the risk-free interest rate. These estimates involve inherent uncertainties and the significant application of management’s
judgment. If factors change and different assumptions are used, our stock-based compensation expense could be materially different in
the future. We recognize compensation expense for these options on a straight-line basis over the requisite service period (see Note
12 – “Stockholders’ Equity”).

(Q)
Income Taxes

The
Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are determined based upon differences between financial
reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the
differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a
deferred tax asset will not be realized.

    14

As
required by ASC 450, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant
tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not
threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of
being realized upon ultimate settlement with the relevant tax authority.

The
Company is not currently under examination by any federal or state jurisdiction.

The
Company’s policy is to record tax-related interest and penalties as a component of operating expenses.

(R)
Recent Accounting Pronouncements

The
Company has reviewed the FASB