Company: PETVW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023398
Chunk: 27

Company: PetVivo Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 27
---
 In general, an arrangement contains a lease if there is an identified asset, and the Company has the right
to direct the use of and obtain substantially all of the economic benefit from the use of the identified asset. The Company records an
operating lease liability at the present value of lease payments over the lease term on the commencement date. The related right of use
(‘ROU”) operating lease asset reflects rental escalation clauses, as well as renewal options and/or termination options.
The exercise of lease renewal and/or termination options is at the Company’s discretion and is included in the determination of
the lease term and lease payment obligations when it is deemed reasonably certain that the option will be exercised. When available,
the Company uses the rate implicit in the lease to discount lease payments to present value; however, certain leases do not provide a
readily determinable implicit rate. Therefore, the Company must estimate our incremental borrowing rate to discount the lease payments
based on information available at lease commencement.

The
Company classifies its leases as buildings, vehicles or computer and office equipment and do not separate lease and non-lease components
of contracts for any of the aforementioned classifications. In accordance with applicable guidance, the Company does not record leases
with terms that are less than one year on the consolidated balance sheets.

None
of the lease agreements contain material restrictive covenants or residual value guarantees.

Buildings

The
Company entered into an 84eighty-four-month
lease for 3,577 square feet of newly constructed office, laboratory, and warehouse space located in Edina, Minnesota in May 2017. The
base rent has annual increases of 2% and the Company is responsible for its proportional share of common space expenses, property taxes,
and building insurance. This lease is terminable by the landlord if damage causes the property to no longer be utilized as an integrated
whole and by the Company if damage causes the facility to be unusable for a period of 45 days. In January 2020, the Company entered into
a lease amendment to extend the lease term through November of 2026 in exchange for receipt of a loan of $42,500 recorded to note payable.
The monthly base rent as of September 30, 2025, and March 31, 2025, was $2,386.

     18 

The
Company entered into a 63sixty-three
month lease for 2,400 square feet of office space located in Edina, Minnesota in January 202