Company: PETVW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006783
Chunk: 11

Company: PetVivo Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 lives and potential impairment
of property and equipment and intangibles, estimate of fair value of share-based payments, distributor rebate payable, provision for
product returns, right of use lease assets and liabilities and valuation of deferred tax assets.

    9

(E)
Cash and Cash Equivalents

The
Company considers all highly-liquid, temporary cash investments with an original maturity of three months or less to be cash equivalents.
The Company had no cash equivalents at December 31, 2024 and March 31, 2024.

(F)
Concentration Risk

The
Company maintains its cash with various financial institutions, which at times may exceed federally insured limits. At December 31, 2024,
and March 31, 2024 the Company did not have cash balances in excess of the federally insured limits.

(G)
Accounts Receivable

Accounts
receivable consist primarily of amounts due from distributors (see revenue recognition). Accounts receivable is recorded based on management’s
assessment of the expected consideration to be received, based on a detailed review of historical collections. Management relies on the
results of the assessment, which includes payment history of the applicable payer as a primary source of information in estimating the
collectability of our accounts receivable as well as a forecast of projected credit losses. We update our assessment on a quarterly basis,
which to date has not resulted in any material adjustments to the valuation of our accounts receivable since all receivables to date
have been collected. We believe the assessment provides reasonable estimates of our accounts receivable valuation, and therefore we believe
that substantially all accounts receivable is fully collectible. Accordingly, as of December 31, 2024, and March 31, 2024, our allowance
for credit losses was zero.

In fiscal year 2024, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on
Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to
as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable
to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance
sheet credit exposures not accounted for as insurance (e.g., loan commitments, standby letters of credit, financial guarantees, and other
similar instruments) and net investments in leases recognized by a less