Company: PETVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001493152-25-011967
Chunk: 22

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 and $0 for the three months ended June 30, 2025 and 2024, respectively.

June
30, 2025 Amendment to Convertible Notes and Extinguishment Accounting

On
June 30, 2025, the Company and noteholders entered into an amendment to fix the Conversion Price at $0.50 per share and eliminate the
variable pricing feature. As a result of the modification, the conversion feature no longer qualified for derivative accounting under
ASC 815 and instead met the criteria for equity classification under ASC 470-20, Debt with Conversion and Other Options.

The
Company evaluated the amendment in accordance with ASC 470-50, Modifications and Extinguishments, and concluded that the modification
resulted in a substantial change in the terms of the instrument due to the conversion feature’s reclassification from a
liability to equity and the resulting change in economic substance. Accordingly, the Company accounted for the transaction as an extinguishment
of the existing debt and the issuance of a new convertible instrument.

Prior
to extinguishment, the derivative liability was remeasured to its fair value of June 30, 2025 of $768,493,
resulting in a loss of $320,404,
which was recognized in other income (expense), net, in the consolidated statement of operations for the three and six months ended
June 30, 2025. Upon extinguishment, the fair value of the derivative liability was reclassified to additional paid-in capital. The
fair values of the derivative liabilities at inception dates of the notes, at March 31, 2025 and June 30, 2025 were estimated using
a binomial option pricing model with the following key inputs: closing stock price at Note inception dates, at March 31, 2025 and
June 30, 2025, strike price of $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, 81.2% - 115.6% at March 31, 2025, and 82% - 82% at June 30, 2025, risk-free rate rates between 4.14% - 5.18% at inception
dates of notes, 4.08% at March