Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 207

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 1A
Chunk 207
---
 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 March 31, 2025 and 2024. As a result, there
is no return liability recorded. Shipping and handling costs are a fulfillment activity and are reported as cost of sales. In March
2025, the Company mutually terminated its non-exclusive distribution agreement with MWI.

For
the years ended March 31, 2025 and 2024, the Company recognized revenue from product sales under the Agreement of $430,818 and $626,176,
respectively. This represents 38% and 65% of total revenues for the years ended March 31, 2025 and 2024, respectively.

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

 SCHEDULE OF RECOGNIZED REVENUE ASSETS AND LIABILITIES

    March
                                            31, 2025  
    March
    31, 2024 
  
    Accounts receivable 
    $-  
    $18,669 
  
    Rebate liability 
     57,264  
     57,264 
  
    Distribution fee payable 
     2,299  
     7,583 

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 to estimate returns and has determined that any returns would be
immaterial as of March 31, 2025 and 2024. As a result, there is no return liability recorded. Shipping and