Company: PETVW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001493152-25-011967
Chunk: 12

Company: PetVivo Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 to estimate returns and has determined that any returns would be immaterial as of June 30, 2025, and March 31,
2025. As a result, there is no return liability recorded. Shipping and handling costs are a fulfilment activity and are reported as
cost of sales. In February 2025, the Company mutually terminated its non-exclusive distribution agreement with Covetrus.

    10

For
the three months ended June 30, 2025, and 2024, the Company recognized revenue from product sales under the Agreement of $0 and $17,784,
respectively. This represents 0% and 14% of total revenues for the three-month period ended June 30, 2025, and 2024, respectively. There
were no accounts receivable from Covetrus at June 30, 2025, and March 31, 2025.

In
December 2024, the Company entered into new 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 of 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 three months ended June 30, 2025 and 2024, the Company recognized revenue from product sales to Vedco of $198,380 and $0, respectively.
This represents 67% and 0% of total revenues for the three months ended June 30, 2025 and 2024, respectively. Accounts receivable from
Vedco was $0 and $53,904 at June 30, 2025, and March 31, 2025.

For
the three months ended June 30, 2025 and 2024, the Company did not recognize any revenue from product sales to Clipper. There were no
accounts receivable from Clipper at June 30, 2025 and March 31, 2025.

(M)
Research and Development

The
Company expenses research and development costs as incurred.

(N)
Fair Value of Financial Instruments

FASB