Company: PETVW
Filing Date: 2025-07-10
Form Type: 10-K
Source: 0001641172-25-018617
Chunk: 954

Company: PetVivo Holdings, Inc.
Filing Date: 2025-07-10
Form: 10-K
Item: Item 7A
Chunk 954
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 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 handling costs are a fulfillment
activity and are reported as cost of sales. In February 2025, the Company mutually terminated its non-exclusive distribution
agreement with Covetrus.

    F-10

For
the years ended March 31, 2025 and 2024, the Company recognized revenue from product sales to Covetrus of $44,015 and $105,637, respectively.
This represents 4% and 11% of total revenues for the years ended March 31, 2025 and 2024, respectively. There were no accounts receivable
from Covetrus at March 31, 2025 and 2024.

In
December 2024, the Company entered into new wholesale distribution partnerships with Vedco, Inc. (“Vedco”) and Clipper Distributing,
LLC (“Clipper”). A distribution service agreement was not signed with either distribution partner. Contracts with both distribution
partners are evidenced by individual executed purchase orders. The purchase orders 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 terms in the purchase order.
Revenue is recognized upon delivery to the Distributor; payment is due within 30 days. Neither distribution partnership provides for
a distribution fee payable or a rebate payable.

For
the years ended March 31, 2025 and 2024, the Company recognized revenue from product sales to Vedco of $288,929