Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 218

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1A
Chunk 218
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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 at issuance was
estimated using the binomial option pricing model with the following inputs: closing stock price of $0.74, strike price of $0.90, 3 year
term , volatility rate of 113.7%, risk-free rate of 4.26%, and dividend yield of zero. The fair value of the warrants at inception was
$98,684. Interest expense related to the amortization of the debt discounts associated with warrants was $5,053 and $0 for the years ended
March 31, 2025 and 2024, respectively.

Fair
Value Allocation of Proceeds from Convertible Notes

When
convertible notes are issued with warrants, and no derivative liability is present