# EDGAR Filing Document

**Accession Number:** 0001512922
**File Stem:** 0001641172-25-018617
**Filing Date:** 2025-7
**Character Count:** 479563
**Document Hash:** 9efdfd594edda19a2ba8c4b2aae82374
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-018617.hdr.sgml**: 20250710

**ACCESSION NUMBER**: 0001641172-25-018617

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 97

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250710

**DATE AS OF CHANGE**: 20250710

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PetVivo Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001512922
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 990363559
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40715
- **FILM NUMBER:** 251116927

**BUSINESS ADDRESS:**
- **STREET 1:** 5251 EDINA INDUSTRIAL BLVD
- **CITY:** EDINA
- **STATE:** MN
- **ZIP:** 55439
- **BUSINESS PHONE:** (952) 217-4952

**MAIL ADDRESS:**
- **STREET 1:** 5251 EDINA INDUSTRIAL BLVD
- **CITY:** EDINA
- **STATE:** MN
- **ZIP:** 55439

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Technologies Scan Corp
- **DATE OF NAME CHANGE:** 20110211

?xml version='1.0' encoding='ASCII'?

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION** **Washington, D.C. 20549**

**FORM 10-K**

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: **001-40715**

**<u>PetVivo Holdings, Inc.</u>** (Name of small business issuer in its charter)

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| | |
|:---|:---|
| **Nevada** | **99-0363559** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |

---

---

| | |
|:---|:---|
| **5151 Edina Industrial Blvd Suite 575<br> Edina, Minnesota** | **55439** |
| **5151 Edina Industrial Blvd Suite 575<br> Edina, Minnesota** | **55439** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(952) 405-6216</u>**

(Registrant's Telephone Number, Including Area Code)

Securities registered under Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.001 | PETV | The Nasdaq Stock Market LLC |
| Warrants to purchase Common Stock | PETVW | The Nasdaq Stock Market LLC |

---

Securities registered pursuant to Section 12(g) of the Act:

**<u>Common Stock, $0.001</u>**

Indicate by check mark if registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

☐ Yes ☒ No

Indicate by check mark if registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated file, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging Growth Company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

As of July 10, 2025, the aggregate market value of the registrant's common stock held by non-affiliates was $12,427,372, based on the closing price of the common stock on the Nasdaq Capital Market on such date.

As of July 10, 2025, there were 24,388,731 shares of the issuer's $.001 par value common stock issued and outstanding.

Documents incorporated by reference. There are no annual reports to security holders, proxy information statements, or any prospectus filed pursuant to Rule 424 of the Securities Act of 1933 incorporated herein by reference.

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| [**PART I**](#a_001) | [**PART I**](#a_001) |  |
| **Item 1.** | **[Business](#a_002)** | 3 |
| **Item 1A.** | **[Risk Factors](#a_003)** | 14 |
| **Item 1B.** | **[Unresolved Staff Comments](#a_007)** | 22 |
| **Item 2.** | [**Properties**](#a_009) | 24 |
| **Item 3.** | [**Legal Proceedings**](#a_010) | 24 |
| **Item 4.** | [**Mine Safety Disclosures**](#a_011) | 24 |
| **[PART II](#a_012)** | **[PART II](#a_012)** |  |
| **Item 5.** | **[Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#a_013)** | 24 |
| **Item 6.** | [**Reserved**](#a_014) | 28 |
| **Item 7.** | **[Management's Discussion and Analysis of Financial Condition and Results of Operation](#a_015)** | 28 |
| **Item 7A.** | **[Quantitative and Qualitative Disclosures About Market Risk](#a_016)** | 31 |
| **Item 8.** | [**Financial Statements and Supplementary Data**](#a_017) | 31 |
| **Item 9.** | **[Changes And Disagreements with Accountants on Accounting And Financial Disclosure](#a_018)** | 31 |
| **Item 9A.** | [**Controls and Procedures**](#a_019) | 31 |
| **Item 9B.** | [**Other Information**](#a_020) | 32 |
| **Item 9C.** | **[Disclosures Regarding Foreign Jurisdictions that Prevent Inspection](#a_021)** | 32 |
| **[PART III](#b_001)** | **[PART III](#b_001)** |  |
| **Item 10.** | **[Directors, Executive Officers, and Corporate Governance](#a_022)** | 33 |
| **Item 11.** | **[Executive Compensation](#a_023)** | 37 |
| **Item 12.** | **[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#a_024)** | 43 |
| **Item 13.** | **[Certain Relationships and Related Transactions And Director Independence](#a_025)** | 45 |
| **Item 14.** | **[Principal Accounting Fees and Services](#a_026)** | 46 |
| **[PART IV](#a_027)** | **[PART IV](#a_027)** |  |
| **Item 15.** | **[Exhibits, Financial Statement Schedules](#a_028)** | 48 |
| **Item 16.** | **[Form 10-K Summary](#a_029)** | 49 |
| **Item 17.** | **[Signatures](#a_030)** | 50 |

---

As used in this report, the terms "we," "us," "our," "PetVivo," and the "Company" mean PetVivo Holding Company, Inc. and our consolidated wholly-owned subsidiaries, unless the context indicates another meaning.

The information contained on or connected to our website is not incorporated by reference into this report.

**Cautionary Statement Regarding Forward-Looking Information**

This Annual Report of PetVivo Holdings, Inc. on Form 10-K contains forward-looking statements, particularly those identified with the words, "anticipates," "believes," "expects," "plans," "intends," "objectives," and similar expressions. These statements reflect management's best judgment based on factors known at the time of such statements. The reader may find discussions containing such forward-looking statements in the material set forth under "Management's Discussion and Analysis and Plan of Operations," generally, and specifically therein under the captions "Liquidity and Capital Resources" as well as elsewhere in this Annual Report on Form 10-K. Actual events or results may differ materially from those discussed herein. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements. The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

**PART I**

**<u>ITEM 1. BUSINESS</u>**

**Overview**

PetVivo Holdings, Inc. (the "Company," "PetVivo," "we" or "us) is an emerging biomedical device company focused on the manufacturing, commercialization, and licensing of innovative medical devices and therapeutics for animals. The Company has a pipeline of eighteen products for the treatment of animals and humans. A portfolio of twelve patents and six proprietary trade secrets protects the Company's biomaterials, products, production processes and methods of use. The Company began commercialization of its lead product Spryng<sup>®</sup> with OsteoCushion<sup>®</sup> Technology, a veterinarian-administered, intraarticular injection for the management of lameness and other joint afflictions such as osteoarthritis in dogs and horses, in the second quarter of its fiscal year ended March 31, 2022.

In August 2021, we received net proceeds of approximately $9.7 million in a registered public offering ("Public Offering") of 2.5 million units at a public offering price of $4.50 per unit. Each unit consisted of one share of our common stock and one warrant to purchase one share of our common stock at an exercise price of $5.625 per share. The shares of common stock and warrants were transferable separately immediately upon issuance. In connection with the Public Offering, the Company's common stock and warrants were registered under Section 12(b) of the Exchange Act and began trading on The Nasdaq Capital Market, LLC under the symbols "PETV" and "PETVW," respectively.

The Company was incorporated in March 2009 under Nevada law. The Company operates as one segment from its corporate headquarters in Edina, Minnesota. For further information, see Note 1, *Description of the Business*, in the note to the consolidated financial statements in Part II, Item 8.

**Business Description**

The Company is primarily engaged in the business of commercializing and licensing products in the veterinary market to treat and/or manage afflictions of companion animals such as cats, dogs and horses. Most of our technology was developed for human biomedical applications, and we intend to leverage the investments already expended in their development to commercialize treatments for horses and companion animals in a capital and time-efficient way.

Many of the Company's products are derived from proprietary biomaterials that simulate a body's cellular tissue by virtue of their reliance upon natural protein and carbohydrate compositions which incorporate such "tissue building blocks" as collagen, elastin, and proteoglycans such as heparin. Since these are naturally-occurring in the body, we believe they have an enhanced biocompatibility with living tissues compared to synthetic biomaterials such as those based upon alpha-hydroxy polymers (e.g PLA, PLGA, and the like), polyacrylamides, and other "natural" biomaterials that may lack the multiple proteins incorporated into our biomaterials. These proprietary protein-based biomaterials that are similar to the body's tissue thus allowing integration and tissue repair in long-term implantation in certain applications.

Our initial product, Spryng<sup>®</sup> is a veterinary medical device designed and engineered to provide a bio-integrative scaffold in the affected joint, promoting restoration of proper joint mechanics. Spryng<sup>®</sup> is an intra-articular injectable product of biocompatible and insoluble particles that are slippery, wet-permeable, durable, and resilient to enhance the force cushioning function of the synovial fluid and cartilage. The particles mimic natural cartilage in composition, structure, and hydration. Multiple joints can be treated simultaneously. Our particles are comprised of naturally derived collagen, elastin, and a glycosaminoglycan (i.e. heparin); such particles mimic the composition and mechanical properties of extracellular matrix and natural cartilage. Spryng<sup>®</sup> assists in promoting a constructive restoration of diseased synovial tissue to improve the biomechanics and mechanical homeostasis of the joint. Furthermore, these particles are designed and engineered to provide a bio-integrative scaffold in the affected joint, promoting restoration of proper joint mechanics.

Osteoarthritis, a common inflammatory joint disease in both dogs and horses, is a chronic, progressive, degenerative joint disease that is caused by a loss of synovial fluid and/or the deterioration of joint cartilage. Osteoarthritis affects approximately 14 million dogs and 1 million horses in the $11 billion companion animal veterinary care and product sales market.

Despite the market size, veterinary clinics and hospitals have very few treatments and/or drugs for use in treating osteoarthritis in dogs, horses, and other pets. As there is no cure for osteoarthritis, current solutions treat symptoms, but do not manage the cause. The current treatment for osteoarthritis in dogs generally consists of the use of nonsteroidal anti-inflammatory drugs (or "NSAIDs") which are approved to alleviate pain and inflammation but present the potential for side effects relating to gastrointestinal, kidney, and liver damage and do not halt or slow joint degeneration. The Company offers an alternative to traditional treatments that only address the symptoms of the affliction. our Spryng<sup>®</sup> product addresses the affliction, loss of synovial fluid and/or the deterioration of joint cartilage, rather than treating just the symptoms and, to the best of our knowledge, has elicited minimal adverse side effects in dogs and horses. Spryng®-treated dogs and horses have shown an increase in activity even after they no longer are receiving pain medication or other treatments. Other treatments for osteoarthritis include steroid and/or hyaluronic acid injections, which are used for treating pain, inflammation and/or joint lubrication, but can be slow acting and/or short lasting.

We believe Spryng<sup>®</sup> is an optimal solution to safely improve joint function in animals for several reasons:

● Spryng<sup>®</sup> addresses the underlying problems which relate to deterioration of cartilage causing pain and inflammation. Spryng<sup>®</sup> mimics the composition and mechanical properties of extracellular matrix and assists in promoting a constructive restoration of diseased synovial tissue to improve the biomechanics and mechanical homeostasis of the joint.

● Spryng<sup>®</sup> is easily administered with the standard intra-articular injection technique. Multiple joints can be treated simultaneously.

● Case studies indicate many dogs and horses have long-lasting multi-month improvement in lameness after having been treated with Spryng<sup>®</sup>

● After receiving a Spryng<sup>®</sup> injection, many canines are able to discontinue the use of NSAID's, eliminating the risk of negative side effects.

● Spryng<sup>®</sup> is an effective and economical solution for treating osteoarthritis. A single injection of Spryng<sup>®</sup> is approximately $600 to $900 per joint and typically lasts for at least 12 months.

Historically, drug sales represent up to 30% of revenues at a typical veterinary practice (Veterinary Practice News). Revenues and margins at veterinary practices are being eroded because online, big-box, and traditional pharmacies have recently started filling veterinary prescriptions. Veterinary practices are looking for ways to replace lost prescription revenues with safe and effective products. Spryng<sup>®</sup> is a veterinarian-administered medical device that should expand practice revenues and margins. We believe that the increased revenues and margins provided by Spryng<sup>®</sup> will accelerate its adoption rate and propel it forward as the standard of care for canine and equine lameness related to or due to synovial joint issues.

We commenced sales of Spryng<sup>®</sup> in the second quarter of fiscal 2022 and plan to increase our commercialization efforts of Spryng<sup>®</sup> in the United States through the use of sales reps, clinical studies and market awareness to educate and inform key opinion leaders on the benefits of Spryng<sup>®</sup>.

We entered into a Distribution Services Agreement ("Distribution Agreement") with MWI on June 17, 2022. Pursuant to the Agreement, we appointed MWI to distribute, advertise, promote, market, supply, and sell the Company's lead product, Spryng<sup>®</sup> on an exclusive basis for two (2) years within the United States (the "Territory"), transitioning to a non-exclusive basis thereafter; provided however that the Company shall extend the exclusivity for an additional one (1) year if MWI achieves certain performance targets agreed upon by the parties. The Company can continue to sell Spryng<sup>®</sup> within the Territory to established accounts, which include: (a) customers who have purchased Spryng<sup>®</sup> from the Company prior to the date of the Agreement, (b) customers who require that they deal directly with the Company, (c) governmental agencies, and (d) customers that order via the internet who are not directly solicited by MWI to purchase Spryng<sup>®</sup>. All customers must be licensed veterinary practices.

In December 2023, the Company and MWI agreed to change the Distribution Agreement from an exclusive distribution agreement to a non-exclusive distribution agreement, effective as of January 1, 2024. This is consistent with the Company's strategy to create multiple sales channels for its products. In March 2025, the Company mutually terminated its non-exclusive distribution agreement with MWI. In December 2023, the Company entered into a non-exclusive distribution agreement with Covetrus North America, LLC ("Covetrus Distribution Agreement"), to market, distribute and sell the Company's products in the United States, including the District of Colombia. The Covetrus Distribution Agreement had an initial term of one year, which was not automatically renewed. The Company mutually terminated its non-exclusive distribution agreement with Covetrus North America, LLC in February 2025.

In December 2024, we entered into new wholesale distribution partnerships with Vedco Inc. ("Vedco") and Clipper Distributing, LLC ("Clipper"), both leaders in logistical solutions and supply of products to veterinarians through the channel-of-distribution for veterinarians. Both MWI and Covetrus have the capability to purchase directly from Vedco and/or Clipper.

Spryng<sup>®</sup> is classified as a veterinary medical device under the United States Food and Drug Administration ("FDA") rules and pre-market approval is not required by the FDA. Spryng<sup>®</sup> completed a safety and efficacy study in rabbits in 2007. Since that time, more than 2,000 horses and dogs have been treated with Spryng<sup>®</sup>. We entered into a clinical trial services agreement with Colorado State University on November 5, 2020. This university clinical study was completed in March 2024. Additionally, the Company successfully completed an equine tolerance study in March 2022 and began a two canine clinical study with Ethos Veterinary Health, the first beginning in May of 2022 which was completed in October 2023, and the second began in June of 2023 with an expected completion in October 2024. We anticipate these and other studies that we plan to initiate will be primarily used to expand our distribution outlets since the large international and national distributors generally require a third-party university study and other third-party studies prior to including a product in their catalog of products.

We manufacture our products in an ISO 7 certified clean room manufacturing facility in Minneapolis using our patented and scalable self-assembly production process, which minimizes the infrastructure requirements and manufacturing risks to deliver a consistent, high-quality product while being responsive to volume requirements. A second ISO cleanroom facility is expected to be operational later this year. We believe that having two manufacturing facilities will help us minimize supply risks, allow for continued scaling or our production capacity, and expand our research and development facilities.

We also have a pipeline that includes 17 therapeutic devices for both veterinary and human clinical applications. Some such devices may be regulated by the FDA or other equivalent regulatory agencies, including but not limited to the Center for Veterinary Medicine ("CVM"). We anticipate growing our product pipeline through the acquisition or in-licensing of additional proprietary products from human medical device companies specifically for use in pets. In addition to commercializing our own products in strategic market sectors and in view of the Company's vast proprietary product pipeline, the Company may establish strategic out-licensing partnerships to provide secondary revenues.

In February 2025, the Company signed an exclusive licensing agreement with VetStem, Inc. to market and sell their Precise PRP (Platelet-Rich Plasma) product for both canine and equine. Revenues are expected in fiscal year 2026.

**Product Pipeline: Other Potential Biocoacervate and Protein Based Products**

![](form10-k_001.jpg)

![](form10-k_002.jpg)

Below is a listing of applications of our technology that we plan to commercialize or out-license to strategic partners:

**Dermal Filler**

Our biomaterials are constructed from purified water, protein, and carbohydrate, tailored to simulate different body tissues that biologically integrate (bio-integration). Our biomaterials can be manufactured and used as a dermal filler for wrinkle treatment by injection. These formed, gel particles fill, integrate and rejuvenate dermal skin tissue to remove the wrinkle. This product was taken through an FDA clinical trial under the name CosmetaLife<sup>®</sup>, see the results here: www.clinicaltrials.gov (NCT00414544).

**Cardiovascular Devices**

Our blood-compatible biomaterial, which allows blood contact and bio-integrative processes to occur without clotting, platelet attachment, or thrombogenesis, is used to repair cardiovascular tissue. VasoGraft<sup>®</sup>, a blood vessel graft made from VasoCover™ material, is designed to mimic natural blood vessel tissue in almost every respect, including the components used.

**Drug Delivery**

Unique fabrication techniques allow us to homogeneously distribute the drug in milligram to nanogram amounts, resulting in optimum performance and manufacturing capabilities for a variety of delivery methods, such as coatings, injectables, implantables, or transmucosal delivery. The first planned transmucosal product has been optimized and tested with peptide drugs with better efficacy than oral dosing via swallowing.

**Orthopedic Devices**

Another of our materials can be used in a variety of shapes for orthopedic and dental applications. The first products, OrthoGelic™ and OrthoMetic™, will be aimed at difficult-to-heal, non-union broken bones, by using particles to fill the empty space. The orthopedic biomaterial, made to mimic the structural components of bone, can allow integration and healing to fill in the break and exclude non-bone tissue infiltration.

**Intellectual Property**

Our intellectual property portfolio is comprised of patents, patent applications, trademarks, and trade secrets. We have six patents issued and 2 patent applications pending in the United States. In addition to the United States patent portfolio, we also have four patents granted in key markets around the world including Canada and countries within the European Union.

We believe we have developed a broad and deep patent portfolio around our biomaterials and manufacturing processes in addition to the application of these biomaterials for use as medical devices, medical device coatings, and pharmaceutical delivery devices. The Company secures other technological know-how by trade secret law and also possesses several trademarks that are either registered or protected pursuant to trademark common law.

United States Patents:

● **11,890,371** – Biocompatible Protein-Based Particles and Methods Thereof

● **11,975,121** – Protein Biomaterials and Bioacervates and Methods of Making and Using Thereof

● **10,744,236** - Protein Biomaterial and Biocoacervate Vessel Graft Systems and Methods of Making and Using Thereof

● **10,016,534** – Protein Biomaterial and Biocoacervate Vessel Graft Systems and Methods of Making and Using Thereof

● **8,623,393** – Biomatrix Structural Containment and Fixation Systems and Methods of Use Thereof

● **8,529,939** – Mucoadhesive Drug Delivery Devices and Methods of Making and Using Thereof

To maximize the strength and value of our patent portfolio, many of the claims use the transitional term "comprising", which is synonymous with "including," This use of transitional language is inclusive or open-ended and does not exclude additional, unrecited elements or method steps. Our patents also include method claims covering many of the applications and uses of the biomaterials as medical devices and drug delivery systems. We believe our intellectual property portfolio strongly protects our proprietary technology, including the composition of raw elements used to produce our formulations, the fabricated biomaterials, and their application in end products, thereby making our material and devices much more attractive to industry partners.

Furthermore, we rely on proprietary trade secrets and confidential know-how to protect various aspects of its product formulations and manufacturing processes. The Company has six documented trade secrets that include, but are not limited to, unique ingredient compositions, specialized blending and production techniques, quality control procedures, and process efficiencies that have been developed and refined through years of internal research and development. These proprietary methods are central to the performance, stability, and scalability of the products currently commercialized by the Company. To safeguard this intellectual property, the Company maintains strict internal controls, including non-disclosure agreements, restricted access protocols, and employee confidentiality and invention assignment agreements. Although trade secrets do not offer the same legal protections as patents, the Company believes that its robust internal policies and the technical complexity of its formulations and processes provide significant competitive advantage and barriers to entry.

We will seek to protect our products and technologies through a combination of patents, regulatory exclusivity, and proprietary know-how. Our goal is to obtain, maintain and enforce patent protection for our products, formulations, processes, methods, and other proprietary technologies, preserve our trade secrets, and operate without infringing on the proprietary rights of other parties, both in the United States and in other countries. Our policy is to actively seek to obtain, where appropriate, the broadest intellectual property protection possible for our current compounds and any future compounds developed. We also strenuously protect our proprietary information and proprietary technology through a combination of contractual arrangements, trade secrets, and patents, both in the United States and abroad. However, even patent protection may not always afford us with complete protection against competitors who seek to circumvent our patents.

We depend upon the skills, knowledge, and experience of our scientific and technical personnel, including those of our company, as well as that of our advisors, consultants, and other contractors, none of which is patentable. To help protect our proprietary know-how, which may not be patentable, and inventions for which patents may be difficult to obtain or enforce, we rely on trade secret protection and confidentiality agreements to protect our interests. To this end, we generally require all of our employees, consultants, advisors, and other contractors to enter into confidentiality agreements that prohibit disclosure of confidential information and, where applicable, require disclosure and assignment of ownership to us the ideas, developments, discoveries, and inventions important to our business.

Finally, we rely on a combination of registered and unregistered intellectual property to protect our brand and products. As of the date of this filing, we own two United States federally registered trademarks: Spryng® and OsteoCushion®, both of which are actively used in commerce in connection with our core products and services. In addition, we assert common law trademark rights in PetVivo™, which has been used continuously in the marketplace in association with our business since approximately 2014. We also own various copyrights that protect our original works of authorship, including proprietary product documentation, website content, marketing materials, clinical publications and other creative and technical content developed internally or acquired through business operations. These trademarks and copyrights are important assets that support our brand identity, help safeguard the unique elements of our products, differentiate our offerings, enhance our user experience and contribute to our competitive position. We actively monitor and enforce our trademark and copyright rights to protect against infringement or misuse.

**Companion Animal Market**

Over the last several decades, we believe the animal health market and industry has a strong component in the overall U.S. economy and is more resistant to economic cycles. The veterinary sector is an attractive area to participate in the growth of the broader healthcare industry without reimbursement risk. The American Pet Products Association (APPA) 2021-2022 National Pet Owners Survey indicates that $123.6 billion was spent on pets in the U. S. in 2021. Vet Care and product sales constitute about $34.3 billion of the market. The growth in the U.S. companion animal market has been continuing to increase due to the increase in the number of pet-owning households.

The APPA 2021-2022 National Pet Owners Survey indicates U.S. pet ownership reached record levels in 2022. Specifically, 70% of all U.S. households owned a pet in 2022. That's 90.5 million pet-owning households, up from 84.6 million in 2018. In 2022, dogs and cats were the most popular pet species, owned by 69% and 45% of U.S. households, respectively. APPA also reported that there were 69.0 million dogs and 45.3 million cats in the U.S. APPA reported that 3.5% of U.S. households owned horses in 2022. According to the American Horse Council, the total number of horses owned by U.S. households was 7.2 million.

**Osteoarthritis Market**

Osteoarthritis, the most common inflammatory joint disease in both dogs and horses, is a progressive condition that is caused by a deterioration of joint cartilage. Over time, the joint cartilage deterioration creates joint stiffness from mechanical stress resulting in inflammation, pain, and loss of range of motion, which may be referred to as lameness. Osteoarthritis joint stiffness and lameness worsen with time from gradual cartilage degeneration and an ongoing loss of protective cushion and lubricity (i.e., loss of slippery padding). As there is no cure for osteoarthritis, the various treatment methods are focused on managing the related symptoms of pain and inflammation. Veterinarians recommend several treatments depending on the severity of the disease, including a combination of rest, weight loss, physical rehabilitation, and a regimen of pain and anti-inflammatory drugs (NSAIDs). Non-steroidal anti-inflammatory drugs (NSAIDs) are used to alleviate the pain and inflammation caused by OA, but long-term NSAIDs cause gastric problems. Moreover, NSAIDs do not treat the cartilage degeneration issue to halt or slow progression of the OA condition.

The Morris Animal Foundation estimates that OA affects approximately 14 million adult dogs in the U.S. and owners consistently report it as a top concern.

**Horse Osteoarthritis (Lameness)**

Equine osteoarthritis is the most common cause of lameness in horses. Equine OA is expensive to manage, with estimated annual costs as high as $10,000-15,000 per horse to diagnose, treat, and medicate, researchers found in one study as referenced in the Horse – Equine Monthly.

As noted previously, the American Horse Council reported the total number of horses owned by U.S. households was 7.2 million. According to an annual National Equine Health Survey conducted in collaboration with the British Equine Veterinary Association in 2016, 26% of horses suffered from lameness. As referenced in the Horse–Equine Monthly, studies show 60% of all lameness issues are related to OA. Based on the above assumptions we calculate that there are approximately 1.1 million horses suffering from OA.

**Distribution**

Most U.S. veterinarians buy a majority of their equipment and supplies from a preferred distributor. More than 75% of veterinarians name Covetrus North America/Butler Schein Animal Health, Inc., Patterson Veterinary, MWI, Midwest Veterinary Supply, Inc., or Victor Medical Company as their preferred distributor. Combined, these top-tier distributors sell more than 85%, by revenue, of the products sold to companion animal veterinarians in the U.S. Covetrus, Patterson, and MWI are recognized by manufacturers, distributors, and veterinarians as the pre-eminent national companion animal veterinary supply distributors in the US. There are no other distributors that provide equivalent levels of service to manufacturers and regularly visit veterinarians in as wide a geographic area as Covetrus, Patterson or MWI. Midwest and Victor are large, regional distributors. The above data in this paragraph was sourced from File No. 101 0023 at the U.S. Federal Trade Commission.

We commenced sales of Spryng<sup>®</sup> in the second quarter of fiscal 2022 and plan to increase our commercialization efforts of Spryng<sup>®</sup> in the United States through our distribution relationship with MWI Veterinary Supply Co. ("Distributor" or "MWI") and the use of sales reps, clinical studies, and market awareness to educate and inform key opinion leaders on the benefits of Spryng<sup>®</sup>.

We entered into a Distribution Services Agreement ("Distribution Agreement") with MWI on June 17, 2022. Pursuant to the Agreement, we appointed MWI to distribute, advertise, promote, market, supply, and sell the Company's lead product, Spryng<sup>®</sup> on an exclusive basis for two (2) years within the United States (the "Territory"), transitioning to a non-exclusive basis thereafter; provided however that the Company shall extend the exclusivity for an additional one (1) year if MWI achieves certain performance targets agreed upon by the parties. The Company can continue to sell Spryng<sup>®</sup> within the Territory to established accounts, which include: (a) customers who have purchased Spryng<sup>®</sup> from the Company prior to the date of the Agreement, (b) customers who require that they deal directly with the Company, (c) governmental agencies, and (d) customers that order via the internet who are not directly solicited by MWI to purchase Spryng<sup>®</sup>. All customers must be licensed veterinary practices. In March 2025, we mutually terminated our non-exclusive distribution agreement with MWI.

We entered into a Distribution Services Agreement (the "Agreement") with Covetrus on December 18, 2023. Pursuant to the Agreement, we appointed Covetrus to distribute, advertise, promote, market, supply, and sell the Company's lead product, Spryng<sup>®</sup> on an exclusive basis for two (2) years within the United States (the "Territory"), transitioning to a non-exclusive basis thereafter; provided however that the Company shall extend the exclusivity for an additional one (1) year if MWI achieves certain performance targets agreed upon by the parties. The Company can continue to sell Spryng<sup>®</sup> within the Territory to established accounts, which include: (a) customers who have purchased Spryng<sup>®</sup> from the Company prior to the date of the Agreement, (b) customers who require that they deal directly with the Company, (c) governmental agencies, and (d) customers that order via the internet who are not directly solicited by MWI to purchase Spryng<sup>®</sup>. All customers must be licensed veterinary practices. In February 2025, we mutually terminated our non-exclusive distribution agreement with Covetrus.

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. Both MWI and Covetrus have the capability to purchase directly from both distributors.

**Orthopedic Joint Treatments**

A treatment for joint pain, which is made of injected, protein-based, biocompatible particles. In vivo studies indicate that the biocompatible particle device can easily be combined with synovial fluid in a rabbit knee to form a joint cushion, buffering the adjacent bones/cartilage where no damage was caused to the cartilage from replacing the synovial fluid. The particles show an effectiveness to augment and reinforce the tissue, cartilage, ligaments and/or bone and/or enhance the functionality of the joint (e.g. reinforce deteriorated components present in the joint to provide cushion or shock-absorbing features to the joint and to provide joint lubricity).

AppTec Laboratories accomplished a gel-particle rabbit study. In short, New Zealand white rabbits (6) were injected in both stifle joints (knees) to fill but not extend the synovial space (~0.5 cc GDP/site). Rabbits were tested every other day for abnormal clinical signs including range of motion and joint observations until sacrifice. Behavioral testing revealed no abnormal scores for range of motion, withdrawal response, or joint observations (all animals were 100% normal). At one week and at four weeks the animals were sacrificed. AppTec pathologists evaluated knee joint histology. The reported cartilage surfaces of the femoral and tibia condyles and the menisci were grossly and histologically 100% normal for all animals and test sites. The test particles were found in all of the injection sites.

The test particle did not cause changes in the articular cartilage of the femur or tibia when injected into the stifle joint of rabbits. The test article and control rabbit knees were not different for either 1 or 4-week time points for all histological measurements. In conclusion, the particles do not cause inflammation or damage to knee joint and will stick to exposed tissues and biologically integrate with those tissues. The particles were not found to stick to articular cartilage in any sample.

**Regenerative Characteristics**

The particle devices for joint injections have been extensively studied for a broad range of applications including the treatment of wrinkles as dermal filler. Here is an overview of the pre-clinical and clinical studies completed for CosmetaLife, which is the name used for the particle device when it was used as a dermal filler.

CosmetaLife is an easy-to-inject, water-protein-based dermal filler that not only fills nasolabial wrinkle depressions but also helps rejuvenate the dermal tissues, counteracting damage that causes wrinkles. The dermal cells are attracted to the CosmetaLife gel-particles, attach to them, and then slowly replace them with natural dermal material (extracellular matrix). The natural biological replacement process of CosmetaLife to collagen is estimated to take 6-12 months. CosmetaLife clinical trial on nasolabial folds supports this estimate.

CosmetaLife injections allow the body to create a more natural dermal structure in and around every particle. Enhancing the natural process of dermal tissue construction with CosmetaLife allows for long-term dermal contouring, corrections, and rejuvenation with little to no adverse side effects noted in clinical trials.

**Particle Device Clinical Studies**

The Company has conducted several biocompatibility animal studies. In the implantation study, no abnormal clinical signs were noted for any of the rabbits. The results of the sensitization study in guinea pigs showed a sensitization response equivalent to the negative controls.

A Food and Drug Administration (FDA) IDE approved pivotal human clinical trial began with CosmetaLife late in 2006. The clinical trial was a randomized, double-blind, parallel assignment, multi-center comparison of the safety and efficacy of CosmetaLife versus Restylane® (Control) for the correction of nasolabial folds. One hundred seventy-one patients were skin tested and 145 were treated at six trial sites. The number of study exits after treatment totaled four subjects. This clinical trial was reported and published at www.clinicaltrials.gov (NCT00414544).

The feedback from physician investigators has been positive with respect to CosmetaLife injection qualities, cosmetic appearance, and its feel to the touch. During the first three to four months of the study, CosmetaLife showed no decrease in efficacy, as compared to Restylane which showed an 11 percent decrease in efficacy. The FDA/IDE approved human clinical trial for the CosmetaLife product through twelve months was found to be the same as compared to control hyaluronic acid product, Restylane (for each interval the consensus of the blinded subjects tested preferred CosmetaLife or showed no preference at 3, 6, 9 and 12 months).

We use existing, scalable processes to reduce the infrastructure requirements and manufacturing risks to deliver a consistent, high-quality product while being responsive to volume requirements. We are able to scale the manufacturing process having made batches in up to 2.0-kilogram quantities to near GMP (Good Manufacturing Practices) standards.

**Particles Safety Study**

Patients injected with CosmetaLife were found to have no or mild inflammatory, irritation, or immunogenic responses. These results suggest the particles are biocompatible because it closely matches the skin structure, composition, and moisture content. The no-to-low immunogenic responses are attributed to the tight cross-linking of the CosmetaLife matrix, which prevents immunogenic progenitor cells from producing antibodies to the matrix.

In the clinical trial, the incidence of possible reaction to a skin test was 2.55 percent, with only one subject showing a reaction to a second test or 0.6%, (1 out of 171). We also have a study report by AppTec, Inc., our Contract Research Organization, that CosmetaLife did not produce an antibody response during the clinical trial further supporting our belief that it is safe to use.

CosmetaLife is composed of materials that approximately meet the Generally Regarded As Safe (GRAS) requirements of the FDA. CosmetaLife contains materials from certified bovine and porcine tissue sources that do not harbor prion disease or BSE. Additionally, steps in the manufacturing process have been validated for deactivating all viruses.

Extrusion force testing and the Clinical Trial usage both demonstrate the consistent and easy injection of CosmetaLife. Twenty-five month stability testing shows that CosmetaLife is stable at room temperature conditions. Moreover, CosmetaLife has been shown to be stable at 40 °C (104 °F) conditions for at least 3 months.

**Competition**

The development and commercialization of new animal health medicines is highly competitive, and we expect considerable competition from major pharmaceutical, biotechnology, and specialty animal health medicines companies. As a result, there are, and likely will continue to be, extensive research and substantial financial resources invested in the discovery and development of new animal health medicines. Our potential competitors include large animal health companies, such as Zoetis, Inc.; Merck Animal Health, the animal health division of Merck & Co., Inc.; Merial, the animal health division of Sanofi S.A.; Elanco, the animal health division of Eli Lilly and Company; Bayer Animal Health, the animal health division of Bayer AG; NAH, the animal health division of Novartis AG; Boehringer Ingelheim Animal Health, the animal health division of Boehringer Ingelheim GmbH; Virbac Group; Ceva Animal Health; Vetoquinol and Dechra Pharmaceuticals PLC. We are also aware of several smaller early stage animal health companies, such as Kindred Bio, Aratana Therapeutics Inc. (recently acquired by Elanco), NextVet and VetDC that are developing products for use in the pet therapeutics market.

**Regulation – Human and Veterinary Use**

A number of the medical devices that we manufacture for veterinary applications, and plan to manufacture for human applications, are subject to regulation by numerous regulatory bodies, including the FDA and comparable international regulatory agencies. These agencies require manufacturers of medical devices to comply with applicable laws and regulations governing the development, testing, manufacturing, labeling, marketing, and distribution of medical devices. Medical devices are generally subject to varying levels of regulatory control, the most comprehensive of which requires that a clinical evaluation program be conducted before a device receives approval for commercial distribution.

In the EU, medical devices are required to comply with the Medical Devices Directive and obtain CE Mark certification in order to market medical devices. The CE Mark certification, granted following approval from an independent Notified Body, is an international symbol of adherence to quality assurance standards and compliance with applicable European Medical Devices Directives. Distributors of medical devices may also be required to comply with other foreign regulations such as Ministry of Health Labor and Welfare approval in Japan. The time required to obtain these foreign approvals to market our products may be longer or shorter than that required in the U.S., and requirements for those approvals may differ from those required by the FDA. In Europe, our devices are classified as Class IIa or IIb, and will need to conform to the Medical Devices Regulation.

In the U.S., specific permission from the FDA to distribute a new device is usually required (that is, other than in the case of very low-risk devices), and we expect that some form of marketing authorization will be necessary for our devices. Marketing authorization is generally sought and obtained in one of two ways. The first process requires that a pre-market notification (510(k) Submission) be made to the FDA to demonstrate that the device is as safe and effective as, or "substantially equivalent" to, a legally-marketed device that is not subject to pre-market approval ("PMA"). A legally-marketed device is a device that (i) was legally marketed prior to May 28, 1976, (ii) has been reclassified from Class III to Class II or I, or (iii) has been found to be substantially equivalent to another legally-marketed device following a 510(k) Submission. The legally-marketed device to which equivalence is drawn is known as the "predicate" device. Applicants must submit descriptive data and, when necessary, performance data to establish that the device is substantially equivalent to a predicate device. In some instances, data from human clinical studies must also be submitted in support of a 510(k) Submission. If so, these data must be collected in a manner that conforms with specific requirements in accordance with federal regulations including the Investigational Device Exemption (IDE) and human subjects protections or "Good Clinical Practice" regulations. After the 510(k) application is submitted, the applicant cannot market the device unless FDA issues "510(k) clearance" deeming the device substantially equivalent. After an applicant has obtained clearance, the changes to existing devices covered by a 510(k) Submission that do not significantly affect safety or effectiveness can generally be made without additional 510(k) Submissions, but evaluation of whether a new 510(k) is needed is a complex regulatory issue, and changes must be evaluated on an ongoing basis to determine whether a proposed change triggers the need for a new 510(k), or even PMA. The 510(k) clearance pathway is not available for all devices: whether it is a suitable path to market depends on several factors, including regulatory classifications, the intended use of the device, and technical and risk-related issues for the device.

The second, more rigorous, process requires that an application for PMA be made to the FDA to demonstrate that the device is safe and effective for its intended use as manufactured. This approval process applies to most Class III devices. A PMA submission includes data regarding design, materials, bench and animal testing, and human clinical data for the medical device. Again, clinical trials are subject to extensive FDA regulation. Following completion of clinical trials and submission of a PMA, the FDA will authorize commercial distribution if it determines there is reasonable assurance that the medical device is safe and effective for its intended purpose. This determination is based on the benefit outweighing the risk for the population intended to be treated with the device. This process is much more detailed, time-consuming, and expensive than the 510(k) process. Also, FDA may impose a variety of conditions on the approval of a PMA.

Both before and after a device for the U.S. market is commercially released, we would have ongoing responsibilities under FDA regulations. The FDA reviews design and manufacturing practices, labeling and record keeping, and manufacturers' required reports of adverse experiences and other information to identify potential problems with marketed medical devices. We would also be subject to periodic inspection by the FDA for compliance with the FDA's quality system regulations, which govern the methods used in, and the facilities and controls used for, the design, manufacture, packaging, and servicing of all finished medical devices intended for human use. In addition, the FDA and other U.S. regulatory bodies (including the Federal Trade Commission, the Office of the Inspector General of the Department of Health and Human Services, the Department of Justice (DOJ), and various state Attorneys General) monitor the manner in which we promote and advertise our products. Although physicians are permitted to use their medical judgment to employ medical devices for indications other than those cleared or approved by the FDA, we are prohibited from promoting products for such "off-label" uses and can only market our products for cleared or approved uses. If the FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of our medical devices are ineffective or pose an unreasonable health risk, the FDA could require us to notify health professionals and others that the devices present unreasonable risks of substantial harm to the public health, order a recall, repair, replacement, or refund of such devices, detain or seize adulterated or misbranded medical devices, or ban such medical devices. The FDA may also impose operating restrictions, enjoin and/or restrain certain conduct resulting in violations of applicable law pertaining to medical devices, including a hold on approving new devices until issues are resolved to its satisfaction, and assess civil or criminal penalties against our officers, employees, or us. The FDA may also recommend prosecution to the DOJ. Conduct giving rise to civil or criminal penalties may also form the basis for private civil litigation by third-party payers or other persons allegedly harmed by our conduct.

The delivery of our devices in the U.S. market would be subject to regulation by the U.S. Department of Health and Human Services and comparable state agencies responsible for reimbursement and regulation of healthcare items and services. U.S. laws and regulations are imposed primarily in connection with the Medicare and Medicaid programs, as well as the government's interest in regulating the quality and cost of health care.

Federal healthcare laws apply when we or customers submit claims for items or services that are reimbursed under Medicare, Medicaid, or other federally-funded healthcare programs. The principal federal laws include: (1) the False Claims Act which prohibits the submission of false or otherwise improper claims for payment to a federally-funded health care program; (2) the Anti-Kickback Statute which prohibits offers to pay or receive remuneration of any kind for the purpose of inducing or rewarding referrals of items or services reimbursable by a Federal health care program; (3) the Stark law which prohibits physicians from referring Medicare or Medicaid patients to a provider that bills these programs for the provision of certain designated health services if the physician (or a member of the physician's immediate family) has a financial relationship with that provider; and (4) health care fraud statutes that prohibit false statements and improper claims to any third-party payer. There are often similar state false claims, anti-kickback, and anti-self-referral and insurance laws that apply to state-funded Medicaid and other health care programs and private third-party payers. In addition, the U.S. Foreign Corrupt Practices Act can be used to prosecute companies in the U.S. for arrangements with physicians, or other parties outside the U.S. if the physician or party is a government official of another country and the arrangement violates the law of that country.

The laws applicable to us are subject to change, and subject to evolving interpretations. If a governmental authority were to conclude that we are not in compliance with applicable laws and regulations, we and our officers and employees could be subject to severe criminal and civil penalties including substantial fines and damages, and exclusion from participation as a supplier of product to beneficiaries covered by Medicare or Medicaid.

The process of obtaining clearance to market products is costly and time-consuming in virtually all of the major markets in which we expect to sell products and may delay the marketing and sale of our products. Countries around the world have recently adopted more stringent regulatory requirements, which are expected to add to the delays and uncertainties associated with new product releases, as well as the clinical and regulatory costs of supporting those releases. No assurance can be given that any of our other medical devices will be approved on a timely basis, if at all. In addition, regulations regarding the development, manufacture, and sale of medical devices are subject to future change. We cannot predict what impact, if any, those changes might have on our business. Failure to comply with regulatory requirements could have a material adverse effect on our business, financial condition, and results of operations.

Pertaining to our Spryng® product (offered for veterinary use only), in the U.S., the FDA does not require submission of a 510(k), PMA, or any pre-market approval for devices used in veterinary medicine. Device manufacturers who exclusively manufacture or distribute veterinary devices are not required to register their establishments and list veterinary devices and are exempt from post-marketing reporting. The FDA does have regulatory oversight over veterinary devices and can take appropriate regulatory action if a veterinary device is misbranded or adulterated. It is the responsibility of the manufacturer and/or distributor of these articles to assure that these animal devices are safe, effective, and properly labeled.

Exported devices are subject to the regulatory requirements of each country to which the device is exported. Some countries do not have medical device regulations, but in most foreign countries medical devices are regulated. Frequently, medical device companies may choose to seek and obtain regulatory approval of a device in a foreign country prior to application in the U.S. given the different regulatory requirements. However, this does not ensure approval of a device in the U.S.

**Research and Development**

The Company is currently pursuing advancements in the composition, methods of manufacture and use for its proprietary biomaterials. It is anticipated that within the next twelve months the Company will pursue additional third-party studies related to the use of Spryng<sup>®</sup> for the treatment of osteoarthritis in canine and equine patients. The Company also anticipates that resources will be expended to advance and improve the manufacturing systems for Spryn<sup>®</sup> that will increase product volume and overall efficiency. Finally, the Company anticipates that research and testing will be conducted in the next eighteen months involving the existing Spryng<sup>®</sup> formulation and other variations to identify and determine the next commercial product(s) that may be administered to the digital cushion of horses for the treatment of navicular disease.

**Employees and Human Capital**

As of July 10, 2025, we have 24 employees. We also engage outside consultants to assist with research and development, clinical development and regulatory matters, investor relations, operations, and other functions from time to time.

The Company believes that its success depends on the ability to attract, develop, and retain key personnel. It also believes that the skills, experience, and industry knowledge of its employees significantly benefit its operations and performance. The Company believes that it offers competitive compensation and other means of attracting and retaining key personnel. None of our employees are represented by a labor union and we believe that our relationships with our employees are good.

**Insurance**

We currently maintain a "life science" commercial insurance policy with coverage in the amount of $2 million for our products and operations. The policy has been designed for those engaged in the life science business. We may face claims in excess of the limits of such insurance. As well, claims made against us may fall outside of our coverage. The policy is a "claims made" policy. Thus, our coverage must be maintained at the time a claim is made for us to be entitled to seek coverage from the issuer of the policy for such claims.

Available Information

We make available, free of charge and through our Internet website at www.petvivo.com, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to any such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission ("SEC"). Reports filed with the SEC also may be viewed at www.sec.gov. We include our website throughout this report for reference only. The information contained on or connected to our website is not incorporated by reference into this report.

**<u>ITEM 1A. RISK FACTORS</u>**

*An investment in our common stock and warrants involves a high degree of risk. You should carefully consider the following described risks together with all other information included in this prospectus before making an investment decision with regard to this offering. If one or more of the following risks occurs, our business, financial condition, and results of operations could be materially harmed, which most likely would result in a decline in the trading price of our common stock and warrants and investors losing part or even all of their investment.*

**Risks Relating to Our Financial Condition**

***The Company's failure to meet the continued listing requirements of The Nasdaq Capital Market has resulted in a delisting of its securities.***

Our common stock and warrants were delisted for trading on Nasdaq and on July 26, 2024, we received approval for trading on the OTCQB market.

***We have incurred substantial losses to date and could continue to incur such losses.***

We have incurred substantial losses since commencing our current business. For the year ended March 31, 2025, we lost approximately $8.0 million without obtaining any significant commercial revenues and had an accumulated deficit of approximately $90.8 million. In order to achieve and sustain future revenues, we must succeed in our current efforts to commercialize Spryng<sup>®</sup> for treatment of dogs and horses suffering from osteoarthritis. That will require us to produce our products effectively in commercial quantities, establish adequate sales and marketing systems, conduct clinical trials and tests which show the safety and efficacy of Spryng<sup>®</sup> in dogs and horses and gain significant support from veterinarians in the use of our products. We expect to continue to incur losses until such time, if ever, as we succeed in significantly increasing our revenues and cash flow beyond what is necessary to fund our ongoing operations and pay our obligations as they become due. We may never generate revenues sufficient to become profitable or to sustain profitability.

***If we are unable to obtain sufficient funding, we may have to reduce materially or even discontinue our business.***

As of March 31, 2025, we have cash or cash equivalents of approximately $228,000. We anticipate that we will be adequate to satisfy operational and capital requirements for the next one (1) month. If we are unable to realize substantial revenues in the near future, we will need to seek additional financing beyond this three-month period to continue our operations. We also most likely will require additional financing to develop additional new products or to expand into foreign markets. Accordingly, our ability to commercialize Spryng<sup>®</sup> and other products may be dependent on our receipt of the net proceeds from our future financings. We also had an investor subscribe to a $5 million Series B Preferred stock offering whereby $600,000 has been received by March 31, 2025. The remaining $4.4 million is expected to be received just prior to the filing of this Form 10-K.

Along with establishing effective production, marketing, sales, and distribution of Spryng<sup>®</sup> and other products, we believe that our future capital requirements depend upon the timing and costs of many factors with some of them beyond our control, including our ability to establish an adequate base of veterinarian clinics using our products, costs in obtaining patents and any required regulatory approvals for future products, costs of any future target animal studies, costs related to new product development, costs of finished product inventory, expenses to attract and retain skilled personnel as needed, increased costs related to being a listed public company, and the costs of any future acquisitions of existing companies or IP technologies. There is no assurance that future additional capital will be available to us as needed, or if available upon terms acceptable to us.

**Risks Relating to Our Business and Industry**

***We have a limited operating history upon which to base an evaluation of our business prospects.***

We were incorporated in March 2009 and have a limited operating history upon which to base an evaluation of our business prospects. We did not begin generating notable revenues from the sale of Spryng<sup>®</sup> until the second quarter of fiscal 2023. Our limited operating history makes an evaluation of our business and prospects very difficult. Our prospects must be considered speculative, especially considering the risks, expenses, and difficulties frequently encountered in the establishment of an early-stage company. Our ability to operate our business successfully remains unknown and untested. If we cannot commercialize our products effectively, or are significantly delayed or limited in doing so, our business and operations will be harmed substantially, and we may even need to cease operations.

 ****

***We are substantially dependent upon the success of Spryng® and any failure of Spryng® to achieve market acceptance would harm us significantly.***

We have one lead product, Spryng<sup>®</sup>, which is in commercial production. Our future prospects rely heavily on the successful marketing of this product. In addition to establishing effective production, marketing, sales, distribution and training for the use of Spryng<sup>®</sup>, we believe its successful commercialization will depend on other material factors including our ability to educate and convince veterinarians and pet owners about the benefits, safety and effectiveness of Spryng<sup>®</sup>, the occurrence and severity of any side effects to pets from use of our products, maintaining regulatory compliance and effective quality control for our products, our ability to maintain and enforce our patents and other intellectual property rights, any increased manufacturing costs from third-party contractors or suppliers, and the availability, cost and effectiveness of treatments offered by competitors.

***Our lead product, Spryng<sup>®</sup>, will face significant competition in our industry, and our failure to compete effectively may prevent us from achieving any significant market penetration.***

The development and commercialization of animal care products is highly competitive, including significant competition from major pharmaceutical, biotechnology, and specialty animal health medical companies. Our competitors include Zoetis, Inc.; Merck Animal Health, the animal health division of Merck & Co., Inc.; Merial, the animal health division of Sanofi, S.A.; Elanco, the animal health division of Eli Lilly and Company; Bayer Animal Health, the animal health division of Bayer AG; Novartis Animal Health, the animal health division of Novartis AG; Boehringer Ingelheim Animal Health; Virbac Group; Ceva Animal Health; Vetaquinol; and Dechra Pharmaceuticals PLC. There also are several smaller stage animal health companies that have recently emerged in our industry and are developing therapeutics products that may compete with Spryng®, including Kindred Bio, Aratana Therapeutics, Next Vet, and VetDC.

Since we are an early-stage company with limited operations and financing, virtually all our competitors have substantially more financial, technical and personnel resources than us. Most of them also have established brands and substantial experience in the development, production, regulation, and commercialization of animal health care products. Regarding our development of any new products or technology, we also compete with academic institutions, governmental agencies and private organizations that conduct research in the field of animal health medicines. We expect that competition in our industry is based on several factors including primarily product reliability and effectiveness, product pricing, product branding, adequate patent and other IP protection, safety of use, and product availability.

Although for the foreseeable future, our efforts and financial resources will continue to focus on successfully commercializing Spryng®, our future business strategy plan includes the identification of additional animal care products we may license, acquire, or develop, and then commercializing such products into a branded product portfolio along with Spryng®. Even if we successfully license, acquire or develop such animal care products from our proprietary technology, or acquire any such new products, we may still fail to commercialize them successfully for various reasons, including competitors offering alternative products which are more effective than ours, our discovery of third-party IP rights already covering the products, harmful side effects caused to animals by the products, inability to produce products in commercial quantities at an acceptable cost, or the products not being accepted by veterinarians and pet owners as being safe or effective. If we fail to successfully obtain and commercialize future new animal care products, our business and prospects may be harmed substantially.

***We will rely on third parties to conduct studies of our current and new products, and if these third parties do not successfully perform their contracted commitments effectively or substantially fail to meet expected study deadlines, we could be delayed from effectively commercializing our future products.***

We have entered into a clinical trial services agreement with Colorado State University and Ethos Veterinary Health. In the future, we may engage other educational institutions with a veterinary medical curriculum to conduct studies of Spryng® and other products to be introduced by us. We expect to have limited control over the timing and resources that such third parties will devote to the studies. Although we must rely on third parties to conduct our studies, we remain responsible for ensuring any of our studies are conducted in compliance with protocols, regulations, and standards set by industry regulatory authorities and commonly referred to as current good clinical practices ("cGCPs") and good laboratory practices ("GLPs"). These required clinical and laboratory practices include many items regarding the conducting, monitoring, recording, and reporting the results of target animal studies to ensure that the data and results of these studies are objective and scientifically credible and accurate.

***Our success is highly dependent on the clinical advancement of our products and adverse results in clinical trials and other studies could prevent us from effectively commercializing our future products***

There can be no assurance that clinical trials or studies of Spryng<sup>®</sup> and our other products will demonstrate the safety and efficacy of such products in a statistically significant manner. Failure to show efficacy or adverse results in clinical trials or studies could significantly harm our business. While some clinical trials and studies of our product candidates may show indications of safety and efficacy, there can be no assurance that these results will be confirmed in subsequent clinical trials or studies or provide a sufficient basis for regulatory approval, if required. In addition, side effects observed in clinical trials or studies, or other side effects that appear in later clinical trials or studies, may adversely affect our or our distributors' ability to market and commercialize our products.

***Our operations rely on third parties to produce our raw materials to produce our products.***

We rely on independent third parties to produce the raw materials (e.g. collagen, elastin, and heparin) that we use to produce our Spryng<sup>®</sup> products. As such, we are dependent upon their services and will not be in a position to control their operations as we might if we directly produced these raw materials. While we believe the raw materials used to manufacture Spryng® products are readily available and can be obtained from multiple reliable sources on a timely basis, circumstances outside our control may impair our ability to have an adequate supply of raw materials to produce our Spryng<sup>®</sup> products.

***If we experience the rapid commercial growth of Spryng<sup>®</sup>, we may not be able to manage such growth effectively.***

We contemplate rapid growth for our business as we bring our Spryng<sup>®</sup> product to new customers and anticipate that this will place significant demands on our management and our operational and financial resources. Our organizational structure will become more complex as we add additional personnel, and we would likely require more financial and staff resources to support and continue our growth. If we are unable to manage our growth effectively, our business, financial condition, and results of operations may be materially harmed.

***Our Distribution Agreements with Vedco and Clipper Distributing are important to our business and if we were to lose our Distribution Agreements it would adversely affect our revenues and profitability.***

In December 2024, we entered into distribution partnerships with Vedco and Clipper Distributing. Both distribution partnerships are important to our business. We generated 43% of our total revenues from Spryng<sup>®</sup> products sold under the distribution partnerships in the fiscal year ended March 31, 2025.

We entered into a Distribution Agreement with MWI in June 2022. We generated 38% of our total revenues from Spryng<sup>®</sup> products sold under the Distribution Agreement in the fiscal year ended March 31, 2025. In March 2025, we mutually terminated our non-exclusive agreement with MWI.

We entered into a Distribution Agreement with Covetrus in December 2023. We generated 4% of our total revenues from Spryng<sup>®</sup> products sold under the Distribution Agreement in the fiscal year ended March 31, 2025. In February 2025, we mutually terminated our non-exclusive agreement with Covetrus.

***If our current sales and marketing program is insufficient or inadequate to support the current introduction of our Spryng<sup>®</sup> product, we may not be able to sell this product in quantities to become commercially successful.***

We commenced sales of Spryng<sup>®</sup> in the second quarter of fiscal 2022 and plan to increase our commercialization efforts for Spryng<sup>®</sup> in the United States through our direct sales to veterinarians and our distributorship relationships with MWI and Covetrus. There are significant risks involved in our building and managing an effective sales and marketing program, including our ability to manage and support our distribution relationship with MWI and Covetrus, our ability to hire, adequately train, maintain, and motivate qualified sales representatives for direct sales and to support our sales to MWI and Covetrus, to generate sufficient sales leads and other contacts, and establish effective product distribution channels. Any failure or substantial delay in the development of our internal sales and marketing program and distribution capabilities would adversely impact our business and financial condition.

***Our business will depend significantly on the sufficiency and effectiveness of our marketing and product promotional programs and incentives.***

Due to the highly competitive nature of our industry, we must effectively and efficiently promote and market our products through the Internet, television and print advertising, social media, and through trade promotions and other incentives to sustain and improve our competitive position in our market. Moreover, from time to time we may have to change our marketing strategies and spending allocations based on responses from our veterinarian customers and pet owners. If our marketing, advertising, and trade promotions are not successful to create and sustain consistent revenue growth or fail to respond to marketing strategy changes in our industry, our business, financial condition, and results of operations may be adversely affected.

***Any damage to our reputation or our brand may materially harm our business.***

Developing, maintaining, and expanding our reputation and brand with veterinarians, pet owners, and others will be critical to our success. Our brand may suffer if our marketing plans or product initiatives are unsuccessful. The importance of our brand and demand for our products may decrease if competitors offer products with benefits similar to or as effective as our products and at lower costs to consumers. Although we maintain procedures to ensure the quality, safety and integrity of our products and their production processes, we may be unable to detect or prevent product and/or ingredient quality issues such as contamination or deviations from our established procedures. If any of our products cause injury to animals, we may incur material expenses for product recalls, and may be subject to product liability claims, which could damage our reputation and brand substantially.

***If we fail to attract and retain qualified management and key scientific personnel, we may be unable to successfully commercialize our current products or develop new products effectively.***

Our success will significantly be dependent upon our current management and key scientific technicians, and also on our ability to attract, retain and motivate future management and employees. We are highly dependent upon our current management and technology personnel, and the loss of the services of any of them could delay or prevent the successful commercialization or development of current or future products. Competition to obtain qualified personnel in the animal health field is intense due to the limited number of individuals possessing the skills and experience required by our industry. We may not be able to attract or retain qualified personnel as needed on acceptable terms, or at all, which would harm our business and operations.

***Natural disasters and other events beyond our control could materially adversely affect us.***

Natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce and the global economy, and thus could have a strong negative effect on us. Our business operations are subject to interruption by natural disasters, fire, power shortages, pandemics (including the ongoing Coronavirus (COVID-19) epidemic) and other events beyond our control. Although we maintain crisis management and disaster response plans, such events could make it difficult or impossible for us to deliver our services to our customers, and could decrease demand for our services.

**Risks relating to Manufacturing**

***We may not be able to manage our manufacturing and supply chain effectively, which would harm our results of operations.***

We must accurately forecast demand for our products in order to have adequate product inventory available to fill customer orders timely. Our forecasts will be based on multiple assumptions that may cause our estimates to be inaccurate, and thus affect our ability to ensure adequate manufacturing capability to satisfy product demand. Any material delay in our ability to obtain timely product inventories from our manufacturing facility and our ingredient suppliers could prevent us from satisfying increased consumer demand for our products, resulting in material harm to our brand and business. In addition, we will need to continuously monitor our inventory and product mix against forecasted demand to avoid having inadequate product inventory or having too much product inventory on hand. If we are unable to manage our supply chain effectively, our operating costs may increase materially.

**Risks relating to our Intellectual Property**

***Failure to protect our intellectual property could harm our competitive position or cause us to incur significant expenses and personnel resources to enforce our rights.***

Our success will depend significantly upon our ability to protect our intellectual property ("IP") rights, including patents, trademarks, trade secrets, and process know-how, which valuable assets support our brand and the perception of our products. We rely on patent, trademark, trade secret, and other intellectual property laws, as well as non-disclosure and confidentiality agreements to protect our intellectual property. Our non-disclosure and confidentiality agreements may not always effectively prevent disclosure of our proprietary IP rights, and may not provide an adequate remedy in the event of an unauthorized disclosure of such information, which could harm our competitive position. We also may need to engage in costly litigation to enforce or protect our patent or other proprietary IP rights, or to determine the validity and scope of proprietary rights of others. Any such litigation could require us to expend significant financial resources and also divert the efforts and attention of our management and other personnel from our ongoing business operations. If we fail to protect our intellectual property, our business, brand, financial condition, and results of operations may be materially harmed.

***We may be subject to intellectual property infringement claims, which could result in substantial damages and diversion of the efforts and attention of our management.***

We must respect prevailing third-party intellectual property, and the procedures and steps we take to prevent our misappropriation, infringement, or other violation of the intellectual property of others may not be successful. If third parties assert infringement claims against us, our suppliers, or veterinarians using our products and technology, we could be required to expend substantial financial and personnel resources to respond to and litigate or settle any such third-party claims. Although we believe our patents, manufacturing processes and products do not infringe in any material respect on the intellectual property rights of other parties, we could be found to infringe on such proprietary rights of others. Any claims that our products, processes, or technology infringe on third-party rights, regardless of their merit or resolution could be very costly to us and also materially divert the efforts and attention of our management and technical personnel. Any adverse outcome to us from one or more such claims against us could, among other things, require us to pay substantial damages, to cease the sale of our products, to discontinue our use of any infringing processes or technology, to expend substantial resources to develop non-infringing products or technology, or to license technology from the infringed party. If one or more of such adverse outcomes occur, our ability to compete could be affected significantly and our business, financial condition and results of operations could be harmed substantially.

**Risks related to Regulation**

***We may be unable to obtain required regulatory approvals for future products timely or at all, and the denial or substantial delay of any such approval could delay materially or even prevent our efforts to commercialize new products, which could adversely impact our ability to generate future revenues.***

Based on our determination that our Spryng<sup>®</sup> products is a device for the treatment of animals rather than being a pharmaceutical product, we believe we are not required to obtain regulatory approval to produce and market them for their current intended uses. However, we have not received confirmation from any regulatory authority that our determination is correct. The production, marketing, and sale of any future products for the treatment of animals based on our proprietary technology may require us to obtain regulatory approval from the Center for Veterinarian Medicine ("CVM"), a branch of the FDA, and/or the USDA, and also certain state regulatory authorities. Any substantial delay or inability to obtain required regulatory approvals for any new products developed by us could substantially delay or even prevent their commercialization, which would materially adversely impact our business and prospects.

Moreover, at such future time that we commence business internationally, our products will need to obtain regulatory approval for labeling, marketing, and sale in foreign countries from authorities such as the European Commission ("EU") or the European Medicine Agency ("EMA"). Any substantial delay or inability to obtain any necessary foreign regulatory approvals for our products could harm our business and prospects materially.

**Risks relating to our Information Technology**

***A failure of one or more key information technology systems, networks, or processes may harm our ability to conduct our business effectively.***

The effective operation of our business and operations will depend significantly on our information technology and computer systems. We will rely on these systems to effectively manage our sales and marketing, accounting and financial, and legal and compliance functions, new product development efforts, research and development data, communications, supply chain and product distribution, order entry and fulfillment, and other business processes. Any material failure of our information technology systems to perform satisfactorily, or their damage or interruption from circumstances beyond our control such as power outages or natural disasters, could disrupt our business materially and result in transaction errors, processing inefficiencies, and even the loss of sales and customers., causing our business and results of operations to suffer materially.

**Risks Related to our Company**

***Ownership and control of our Company is concentrated in our management.***

As of June 1, 2025, our officers and directors beneficially own or control approximately 27% of our outstanding shares of common stock. This concentrated ownership and control by our management could adversely affect the status and perception of our common stock and/or warrants. In addition, any material sales of common stock of our management, or even the perception that such sales will occur, could cause a material decline in the trading price of our common stock and/or warrants.

Due to this ownership concentration, our management has the ability to control all matters requiring stockholder approval including the election of all directors, the approval of mergers or acquisitions, and other significant corporate transactions. Any person acquiring our common stock most likely will have no effective voice in the management of our company. This ownership concentration also could delay or prevent a change of control of the Company, which could deprive our stockholders from receiving a premium for their common shares.

***The market price of our common stock is highly volatile because of several factors, including a limited public float.***

The market price of our common stock has been volatile in the past and the market price of our common stock and our warrants is likely to be highly volatile in the future. You may not be able to resell shares of our common stock following periods of volatility because of the market's adverse reaction to volatility.

Other factors that could cause such volatility may include, among other things:

● actual or anticipated fluctuations in our operating results;

● the absence of securities analysts covering us and distributing research and recommendations about us;

● we may have a low trading volume for a number of reasons, including that a large portion of our stock is closely held;

● overall stock market fluctuations;

● announcements concerning our business or those of our competitors;

● actual or perceived limitations on our ability to raise capital when we require it, and to raise such capital on favorable terms;

● conditions or trends in the industry;

● litigation;

● changes in market valuations of other similar companies;

● future sales of common stock;

● departure of key personnel or failure to hire key personnel; and

● general market conditions.

Any of these factors could have a significant and adverse impact on the market price of our common stock. In addition, the stock market in general has at times experienced extreme volatility and rapid decline that has often been unrelated or disproportionate to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock and/or warrants, regardless of our actual operating performance.

***Our common stock has in the past been a "penny stock" under SEC rules, and if our common stock is deemed to be a "penny stock," it will be more difficult to resell our securities.***

In the past, our common stock was a "penny stock" under applicable Securities and Exchange Commission ("SEC") rules (generally defined as non-exchange traded stock with a per-share price below $5.00). While our common stock is currently not considered a "penny stock," if we do not continue to satisfy the requirements to be exempt from the "penny stock" rules, it will be more difficult to resell our securities. "Penny stock" rules impose additional sales practice requirements on broker-dealers that recommend the purchase or sale of penny stocks to persons other than those who qualify as "established customers" or "accredited investors." For example, broker-dealers must determine the appropriateness for non-qualifying persons of investments in penny stocks. Broker-dealers must also provide, prior to a transaction in a penny stock not otherwise exempt from the rules, a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, disclose the compensation of the broker-dealer and its salesperson in the transaction, furnish monthly account statements showing the market value of each penny stock held in the customer's account, provide a special written determination that the penny stock is a suitable investment for the purchaser, and receive the purchaser's written agreement to the transaction.

Legal remedies available to an investor in "penny stocks" may include the following:

● If a "penny stock" is sold to the investor in violation of the requirements listed above, or other federal or state securities laws, the investor may be able to cancel the purchase and receive a refund of the investment.

● If a "penny stock" is sold to the investor in a fraudulent manner, the investor may be able to sue the persons and firms that committed the fraud for damages.

These requirements may have the effect of reducing the level of trading activity, if any, in the secondary market for a security that becomes subject to the penny stock rules. The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting transactions in our securities, which could severely limit the market price and liquidity of our securities. These requirements may restrict the ability of broker-dealers to sell our common stock or our warrants and may affect your ability to resell our common stock and our warrants.

Many brokerage firms will discourage or refrain from recommending investments in penny stocks. Most institutional investors will not invest in penny stocks. In addition, many individual investors will not invest in penny stocks due, among other reasons, to the increased financial risk generally associated with these investments. For these reasons, penny stocks may have a limited market and, consequently, limited liquidity. We can give no assurance that our common stock will not be classified as a "penny stock" in the future.

***We are required to comply with certain provisions of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act") and if we fail to continue to comply, our business could be harmed, and the price of our securities could decline.***

Rules adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act require an annual assessment of internal controls over financial reporting, and for certain issuers, an attestation of this assessment by the issuer's independent registered public accounting firm. The standards that must be met for management to assess the internal controls over financial reporting as effective are evolving and complex, and require significant documentation, testing, and possible remediation to meet the detailed standards. We expect to incur significant expenses and to devote resources to Section 404 compliance on an ongoing basis. It is difficult for us to predict how long it will take or costly it will be to complete the assessment of the effectiveness of our internal controls over financial reporting for each year and to remediate any deficiencies in our internal control over financial reporting. As a result, we may not be able to complete the assessment and remediation process on a timely basis. In the event that our Chief Executive Officer or Chief Financial Officer determines that our internal controls over financial reporting are not effective as defined under Section 404, we cannot predict how regulators will react or how the market prices of our securities will be affected; however, we believe that there is a risk that investor confidence and the market value of our securities may be negatively affected.

***We do not anticipate paying any dividends on our common stock for the foreseeable future.***

We have not paid any dividends on our common stock to date, and we do not anticipate paying any such dividends in the foreseeable future. We anticipate that any earnings experienced by us will be retained to finance the implementation of our operational business plan and expected future growth.

***The elimination of monetary liability against our directors and executive officers under Nevada law and the existence of indemnification rights held by them granted by our bylaws could result in substantial expenditures by us.***

Our Articles of Incorporation eliminate the personal liability of our directors and officers to the Company and its stockholders for damages for breach of fiduciary duty to the maximum extent permissible under Nevada law. In addition, our Bylaws provide that we are obligated to indemnify our directors or officers to the fullest extent authorized by Nevada law for costs or damages incurred by them involving legal proceedings brought against them relating to their positions with the Company. These indemnification obligations could result in our incurring substantial expenditures to cover the cost of settlement or damage awards against our directors or officers.

***Our Articles of Incorporation, Bylaws, and Nevada law may have anti-takeover effects that could discourage, delay or prevent a change in control, which may cause our stock price to decline.***

Our Articles of Incorporation, Bylaws, and Nevada law could make it more difficult for a third party to acquire us, even if closing such a transaction would be beneficial to our stockholders. We are authorized to issue up to 20,000,000 shares of preferred stock. This preferred stock may be issued in one or more series, the terms of which may be determined at the time of issuance by our board of directors without further action by stockholders. The terms of any series of preferred stock may include voting rights (including the right to vote as a series on particular matters), preferences as to dividend, liquidation, conversion and redemption rights, and sinking fund provisions. None of our preferred stock will be outstanding at the closing of this offering. The issuance of any preferred stock could materially adversely affect the rights of the holders of our common stock, and therefore reduce the value of our common stock. In particular, specific rights granted to future holders of preferred stock could be used to restrict our ability to merge with, or sell our assets to, a third party and thereby preserve control by the present management.

Provisions of our Articles of Incorporation, Bylaws, and Nevada law also could have the effect of discouraging potential acquisition proposals or making a tender offer or delaying or preventing a change in control, including changes a stockholder might consider favorable. Such provisions may also prevent or frustrate attempts by our stockholders to replace or remove our management. In particular, our certificate of incorporation and by-laws and Delaware law, as applicable, among other things:

● provide the board of directors with the ability to alter the by-laws without stockholder approval;

● establishing advance notice requirements for nominations for election to the board of directors or for proposing matters that can be acted upon at stockholder meetings; and

● provide that vacancies on the board of directors may be filled by a majority of directors in office, although less than a quorum.

**<u>ITEM 1B. UNRESOLVED STAFF COMMENTS</u>**

None.

**<u>Item 1C. Cybersecurity</u>**

**Risk Management and Strategy**

We have established policies and processes for assessing, identifying, and managing risks from cybersecurity threats, and have integrated these processes into our overall risk management systems and processes. We routinely assess risks from cybersecurity threats, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein.

We conduct periodic risk assessments to identify cybersecurity threats, as well as assessments in the event of a material change in our business practices that may affect information systems that are vulnerable to such cybersecurity threats. These risk assessments include identification of reasonably foreseeable internal and external risks, the likelihood and potential damage that could result from such risks, and the sufficiency of existing policies, procedures, systems, and safeguards in place to manage such risks.

Following these risk assessments, we evaluate whether and how to re-design, implement, and maintain reasonable safeguards to minimize identified risks; reasonably address any identified gaps in existing safeguards; and regularly monitor the effectiveness of our safeguards. We devote significant resources and designate high-level personnel, including our CFO, who reports to our Board, to manage the risk assessment and mitigation process.

As part of our overall risk management system, we monitor our safeguards and train our employees on these safeguards. Personnel at all levels and departments are made aware of our cybersecurity policies through trainings integrated into new employee onboarding processes and annual employee re-training.

We engage consultants, experts, or other third parties in connection with our risk assessment processes. These third parties assist us in designing and implementing our cybersecurity policies and procedures, as well as in monitoring and testing our safeguards.

We require each third-party service provider who may have access to our systems and/or our sensitive data to confirm that it has the ability to implement and maintain appropriate security measures, consistent with all applicable laws, to implement and maintain reasonable security measures in connection with their work with us, and to promptly report any suspected breach of its security measures that may affect our company.

We have not experienced any cybersecurity incidents that have been determined to be material in the past, however, like other medical device companies, we have experienced cybersecurity incidents and may continue to experience them in the future. For additional information regarding whether any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, materially affected or are reasonably likely to materially affect our company, including our business strategy, results of operations, or financial condition, please refer to "*Item 1A. Risk Factors" i*n this Annual Report on Form 10-K.

**Governance**

One of the key functions of our Board is to be informed oversight of our risk management process, including risks from cybersecurity threats. Our Board is responsible for monitoring and assessing strategic risk exposure, and our executive officers are responsible for the day-to-day management of the material risks we face. Our Board administers its cybersecurity risk oversight function directly as a whole, as well as through the Audit Committee.

Our CFO and representatives from our management committee on cybersecurity, which includes our Chief Business Development Officer and General Counsel, and our outside consultants, who collectively possess significant experience in evaluating, managing, and mitigating security and other risks, including cybersecurity risks, are primarily responsible for assessing and managing our material risks from cybersecurity threats.

Our CFO and management committee on cybersecurity oversee our cybersecurity policies and processes, including those described in "Risk Management and Strategy" above. The processes by which our CFO and representatives from our management committee on cybersecurity are informed about and monitor the prevention, detection, mitigation, and remediation of cybersecurity incidents includes the following:

● · monitoring of Company computer and information systems for potential malware, ransomware and other malicious activity, and remediation of identified issues, including mitigation of identified risks and containment and elimination of any malicious software;

● mandatory cybersecurity training as part of new employee onboarding along with required annual and periodic employee cybersecurity re-training;

● · monitoring of systems and network infrastructure by security information and event management application;

● prompt incident reporting directly to the Board; and

● escalation to the Company's Audit Committee and Board as warranted based upon the nature of the identified issue.

Our CFO and/or representatives from our management committee on cybersecurity provide periodic briefings to the Audit Committee and the Board regarding our Company's cybersecurity risks and activities, including any recent cybersecurity incidents and related responses, cybersecurity systems testing, activities of third parties, and the like.

**<u>ITEM 2. PROPERTIES</u>**

We do not own any real estate. We lease approximately 3,600 square feet of office, laboratory, and warehouse space at 5251 Edina Industrial Blvd., Edina, Minnesota. This lease will expire in November 2026.

In January 2022, we leased an additional 2,400 square feet of office space near the location above. This lease will expire in March 2027. Refer to Note 9. *Commitments and Contingencies*, in the Notes to Consolidated Financial Statements set forth in Part II, Item 8. Financial Statements and Supplementary Data of this Annual Report, for further information regarding our leases.

On January 10, 2023, the Company entered into a new lease agreement for 14,073 square feet of production and warehouse space with a commencement date of April 1, 2023, which is when the control and right of use for this lease asset took place. The initial monthly base rent is $8,420 and has annual increases of 2.5%. The Company is also responsible for its proportional share of common space expenses, property taxes, and building insurance. The lease will terminate on June 30, 2033, and the Company has a renewal option for a period of five years.

The Company believes that the current facilities are suitable and adequate to meet the Company's current needs and that suitable additional space will be available as and when needed on acceptable terms.

**<u>ITEM 3. LEGAL PROCEEDINGS</u>**

From time to time, we may become involved in legal proceedings arising in the ordinary course of our business, the resolution of which we do not anticipate would have, individually or in the aggregate, a material adverse effect on our business, financial condition, or results of operations. Refer to Note 9. *Commitments and Contingencies – Legal Proceedings*, in the Notes to Consolidated Financial Statements set forth in Part II, Item 8. Financial Statements and Supplementary Data of this Annual Report, for further information regarding potential legal proceedings.

**<u>ITEM 4. MINE SAFETY DISCLOSURES</u>**

Not applicable.

**PART II**

**<u>ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES</u>**

**Market Information**

The Company's common stock is publicly traded on the OTCQB Nasdaq Capital Market under the symbol "PETV."

**Number of Stockholders**

As of March 31, 2025, there were approximately 258 stockholders of record. The number of stockholders of record does not include certain beneficial owners of our common stock, whose shares are held in the names of various dealers, clearing agencies, banks, brokers, and other fiduciaries.

**Dividends**

We have never declared or paid any cash dividends on our common stock and anticipate that for the foreseeable future all earnings will be retained for use rather than paid out as cash dividends.

**Unregistered Sales of Securities** 

In October 2023, the Company sold 125,000 shares of its common stock to one investor for a total amount of $200,000.

In December 2023, the Company sold 352,224 shares of its common stock to five investors totaling $317,000. These investors also received warrants to purchase 317,000 shares at an exercise price of $1.50 per share. The warrants expire in December 2026.

On the first day of October, November and December 2023, the Company issued 16,668 shares of its restricted common stock (for an aggregate of 50,004 shares) to the consultant for services rendered in these months to the Company, which shares were valued at $31,666, $23,748 and $14,071, respectively. The Company entered into a services agreement with a consultant for a 12-month period on January 1, 2023.

In December 2023, the Company granted options to purchase an aggregate of 195,700 shares of its common stock under the PetVivo Holdings, Inc. Amended and Restated 2020 Equity Plan ("Amended Plan") to its Board of Directors for its compensation for the period October 1, 2023 to September 30, 2024. The exercise price of these options was $1.06 per share which was the closing price of the Company's common stock on the date of the grant. The Director options vest on September 30, 2024 and expire on the earlier of the date on which the Director's service with the Company is terminated or seven years after the grant date.

In October, November and December 2023, the Company issued 117,000 shares of common stock to service providers for consulting services valued at $223,640.

In October and December 2023, the Company issued 11,250 shares of common stock upon the vesting of restricted stock units issued to three employees.

From January 2024 to March 2024, the Company issued 324,000 shares of common stock to four consultants for services provided to the Company valued at $333,660.

From January 2024 to March 2024, the Company issued 109,834 shares of common stock upon the vesting of restricted stock units granted to four employees, with 15,250 shares vesting on January 2, 2024, 1,250 shares vesting on March 12, 2024, and 93,334 shares vesting on March 28, 2024.

From January 2024 to March 2024, the Company sold 1,386,469 units to thirteen investors, with each unit consisting of one share of restricted common stock and one warrant to purchase one share of common stock, at a price of $0.90 per unit. In total the Company raised $1,247,819 pursuant to the private offering of the units. The warrants are immediately exercisable, have an exercise price of $1.50 per share (and no cashless exercise rights), and are exercisable until February 1, 2027.

From January 2024 to March 2024, the Company issued 164,340 shares upon the conversion of debt to one shareholder in the amount of $123,255 including accrued interest of $3,255.

In April 2024, the Company issued 430,798 shares in connection with the conversion of a convertible note plus interest in exchange for proceeds of $301,558 at a price of $0.70 per share.

From April 2024 to May 2024, the Company issued 1,889,434 shares of common stock at a price of $0.70 per share in exchange for proceeds of $1,322,600.

From April 2024 to June 2024, the Company issued 376,000 shares of common stock to service providers for consulting services valued at $590,160.

From April 2024 to June 2024, the Company issued 150,000 shares of common stock upon the vesting of restricted stock units.

From July 2024 to September 2024, the Company issued 120,000 shares of common stock to service providers for consulting services valued at $56,020.

From July 2024 to September 2024, the Company issued 42,312 shares of common stock upon the vesting of restricted stock units.

In October 2024, the Company issued 240,000 shares of common stock to its executive officers, in lieu of compensation valued at $132,000.

In October 2024, the Company returned 25,000 shares that were returned by an executive officer for cancellation of shares in lieu of compensation valued at $13,750.

From October 2024 to December 2024, the Company issued 162,812 shares of common stock upon the vesting of restricted stock units.

In October 2024 to November 2024, the Company issued 225,000 shares of common stock at a price of $0.50 per share in exchange for proceeds of $112,500.

From October 2024 to December 2024, the Company issued 85,000 shares of common stock to service providers for consulting services valued at $37,780.

In December 2024, the Company issued 375,000 shares to its executive officers for performance services valued at $150,750.

In December 2024, the Company issued 121,808 shares of common stock to its executive officers for conversion of accrued bonuses valued at $50,000.

In January 2025 to February 2025, the Company issued 946,154 shares in connection with the sale of stock at a price of $0.65 per share in exchange for proceeds of $615,000.

In January 2025 to February 2025, the Company issued 70,000 shares to employees for performance services valued at $41,500.

In February 2025, the Company issued 20,000 shares to a Board Director for consulting services valued at $10,800.

In February 2025, the Company issued 1,000,000 shares of common stock for purchase of an exclusive licensing agreement valued at $1,000,000.

From January 2025 to March 2025, the Company issued 144,000 shares of common stock to service providers for consulting services valued at $104,780.

From January 2025 to March 2025, the Company issued 72,812 shares of common stock upon the vesting of restricted stock units.

In March 2025, the Company issued 230,770 shares of common stock for an investment in Digital Landia valued at $150,000.

In March 2025, the Company issued 225,000 shares of common stock to its executive officers for performance services valued at $156,250.

In March 2025, the Company issued 68,628 shares of common stock to its executive officers for conversion of accrued bonuses valued at $35,000.

In March 2025, the Company issued 150,072 shares of common stock to employees and Board Directors for stock option buyout program valued at $72,808.

In March 2025, the Company issued 2,317 shares of common stock related to a cashless warrant exercise.

All of these transactions described above were exempt from registration in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended, as a transaction by an issuer not involving a public offering. The purchasers of securities in each of these transactions represented their intention to acquire securities for investment only and not with a view to offer or sell, in connection with any distribution of the securities, and appropriate legends were affixed to the share certificates and instruments issued in such transactions.

**Purchases of Equity Securities by the Registrant and Affiliated Purchasers**

None.

**Securities Authorized for Issuance**

The following table sets forth securities authorized for issuance under any equity compensation plan approved by our stockholders as well as any equity compensation plans not approved by our stockholders as of March 31, 2025.

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| | | | |
|:---|:---|:---|:---|
| **Equity Compensation Plan Information** | **Equity Compensation Plan Information** | **Equity Compensation Plan Information** | **Equity Compensation Plan Information** |
| **Plan category** | **Number of securities to be issued upon exercise of outstanding options, warrants, and rights** | **Weighted average exercise price of outstanding options, warrants, and rights** | **Number of Securities remaining available for future issuance under equity compensation plans (excluding securities reflect in table)** |
| **Plans approved by shareholders<sup>(1)</sup>** | 1140933 | $2.58 | 822605 |
| **Plans not approved by shareholders<sup>(2)</sup>** | 562817 | $2.00 |  |

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(1) PetVivo Holdings, Inc. Amended and Restated 2020 Equity Incentive
Plan.

(2) Represents warrants granted to officers, directors, employees,
financial advisors, consultants, investors, and other service providers pursuant to individual contracts, investments, awards, or arrangements
for compensatory purposes.

**Use of proceeds from our initial public offering of common stock**

On August 13, 2021, we completed our Public Offering pursuant to which we issued and sold an aggregate of 2,500,000 units at the public offering price of $4.50 per unit. Each unit consisted of one share of our common stock and one warrant to purchase one share of our common stock at an exercise price of $5.625 per share. The shares of common stock and warrants were transferable separately immediately upon issuance. At the closing of the Public Offering, the underwriter exercised its over-allotment option to purchase an additional 375,000 warrants for an aggregate purchase price of $3,850.

The offer and sale of all of the units in our Public Offering were registered under the Securities Act pursuant to a registration statement on Form S-1, as amended (File No. 333-249452), which was declared effective by the SEC on August 10, 2021 ("Registration Statement"). ThinkEquity, a division of Fordham Financial Management, Inc. acted as the sole book-running manager for the Public Offering. In connection with the Public Offering, the Company's common stock and warrants were registered under Section 12(b) of the Exchange Act and began trading on The Nasdaq Capital Market, LLC under the symbols "PETV" and "PETVW," respectively.

We received aggregate gross proceeds from our Public Offering of $11,253,850 (inclusive of the underwriter's exercise of its overallotment option to purchase warrants). After deducing underwriting discounts and commissions and other offering expenses, we received net proceeds of approximately $9,781,000 from the Public Offering.

**<u>ITEM 6. RESERVED</u>**

Not applicable.

**<u>ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION</u>**

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and related notes that appear elsewhere in this prospectus. In addition to historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to those differences include those discussed below and elsewhere in this prospectus, particularly in "RISK FACTORS." We caution the reader not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date of this prospectus.

We are a smaller reporting company and have not generated any material revenues to date and have incurred substantial losses in connection with our limited operations. We need substantial capital to pursue our current plans to bring our first products to market. The first of such products is a proprietary gel-like protein-based biomedical material for injection into the afflicted body parts of animals suffering from osteoarthritis or other impairments to be marketed under the trade name Spryng®, formerly known as Spryng®. It will provide veterinarians an innovative treatment for dogs and horses suffering from osteoarthritis.

The independent auditor's report accompanying our March 31, 2025, financial statements contain an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business. We have suffered recurring losses from operations, and our working capital is insufficient to fund our operations for the next 12 months. These factors raise substantial doubt about our ability to continue as a going concern.

**RESULTS OF OPERATION**

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| | | |
|:---|:---|:---|
|  | **For Fiscal Year Ended March 31,** | **For Fiscal Year Ended March 31,** |
|  | **2025** | **2024** |
| Revenues | $1132533 | $968706 |
| Total Cost of Sales | 137677 | 101823 |
| Total Operating Expenses | 9050575 | 11488223 |
| Total Other Income (Expense) | (343446) | (335955) |
| Net Loss | (8399166) | (10955295) |
| Net loss per share - basic and diluted | $(.41) | $(.78) |

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**For The Fiscal Year Ended March 31, 2025 ("fiscal 2025") Compared to The Year Ended March 31, 2024 ("fiscal 2024")**

***Total Revenues***. Revenues were $1,132,533 in fiscal 2025 compared to $968,706 for fiscal 2024. Revenues in fiscal 2025 consisted of sales of our Spryng® product to our Distributors of $956,159 and to veterinary clinics in the amount of $176,374. In fiscal 2024 consisted of sales of our Spryng® product to our Distributors of $731,813 and to veterinary clinics in the amount of $236,893. The increase in our revenues in the twelve months ended March 31, 2025, is due to sales to our Distributors pursuant to our distribution partnerships with Vedco and Clipper Distributing and sales of PrecisePRP product pursuant to our Exclusive License Agreement with VetStem.

 ****

 ****

***Total Cost of Sales***. Cost of sales was $137,677 in fiscal 2025 compared to $101,823 for fiscal 2024. Cost of sales includes product costs related to the sale of our Spryng® products, labor and certain overhead costs and direct costs of Precise PRP product pursuant to our Exclusive License Agreement with VetStem. The Company has historically prepared a manufacturing allocation on a quarterly basis based on certain manufacturing expenses as part of cost of sales.

 ****

***Operating Expenses***. Operating expenses decreased to $9,050,575 in fiscal 2025 compared to $11,488,223 in fiscal 2024. Operating expenses consisted of general and administrative, sales and marketing, and research and development expenses. The decrease is primarily due to decreased G&A expenses and sales and marketing expenses related to the sale of our Spryng® product.

General and administrative ("G&A") expenses were $4,823,230 and $6,693,186 in fiscal 2025 and 2024, respectively. General and administrative expenses include compensation and benefits, contracted services, consulting fees, stock compensation, and incremental public company costs. The decrease is primarily due to decreased legal expenses as our corporate/secretary duties have been absorbed by our internal general counsel. The decrease is also attributed to reduced investor relations consulting fees.

Sales and marketing expenses were $2,644,095 and $3,399,666 in fiscal 2025 and 2024, respectively. Sales and marketing expenses includes compensation, consulting, tradeshows, and advertising and promotion costs to support the launch of our Spryng® product. The decrease is primarily due to the termination of an expensive marketing agency relationship and reduced trade show participation.

Research and development ("R&D") expenses were $1,583,250 and $1,395,371 in fiscal 2025 and 2024, respectively. The increase was related to clinical studies and efforts to support the launch of Spryng®.

***Operating Loss***. As a result of the foregoing, our operating loss was $8,055,720 and $10,621,340 in fiscal 2025 and 2024, respectively. The decreased loss was related to decreased general and administrative expenses and sales and marketing expenses.

 ****

***Other Income (Expense).*** Other expense was ($343,446) in fiscal 2025 compared to other expense of ($333,955) in fiscal 2024. Other expense in fiscal 2025 consisted of extinguishment of payables of $66,076, sublease rental income of $42,000, an IRS payroll tax refund from a prior year of $16,800, interest expense of ($362, 4139) and unrealized loss on change in derivative liability of ($106,513), Other income in fiscal 2024 consisted of loss on extinguishment of debt of ($534,366), settlement payment of ($180,000) to David Masters offset by the extinguishment of payables of $386,874, and interest expense of ($6,463).

 ****

***Net Loss***. Our net loss in fiscal 2025 was $8,399,166 or ($0.41) per share compared to a net loss $10,955,295 or ($0.78) per share in fiscal 2024. The weighted average number of shares outstanding was 20,491,422 compared to 13,969,754 for fiscal 2025 and 2024, respectively.

**LIQUIDITY AND CAPITAL RESOURCES**

On March 26, 2025, the Company entered into a Subscription Agreement for $5,000,000 in a Series B Preferred Offering, whereby $600,000 was received, with the remaining $4,400,000 proceeds received in May and June 2025. As of March 31, 2025, our current assets were $1,041,660 including $87,403 in cash and cash equivalents. In comparison, our current liabilities as of that date were $1,362,369 including $1,014,259 of accounts payable and accrued expenses. Our working capital deficit as of March 31, 2024 was $320,709.

The Company has continued to realize losses from operations. However, as a result of our recent offerings, we believe we will have sufficient cash to meet our anticipated operating costs and capital expenditure requirements for at least the next three months. We will need to raise additional capital in the future to support our efforts to commercialize Spryng® and our ongoing operations. We expect to continue to raise additional capital through the sale of our securities from time to time for the foreseeable future to fund our business expansion. Our ability to obtain such additional capital will likely be subject to various factors, including our overall business performance and market conditions. There can be no guarantee that the Company will be successful in its ability to raise additional capital to fund its business plan.

*<u>Net Cash Used in Operating Activities</u>* – We used $4,521,930 of net cash in operating activities in fiscal 2025. This cash used in operating activities was primarily attributable to our net loss of $8,399,166, offset by stock based compensation of $1,107,520, and an increase in accounts payable and accrued expenses of $1,155,038.

*<u>Net Cash Used in Investing Activities</u>* – We used 1,063,436 of net cash in investing activities in fiscal 2025 due to the purchase of the VetStem Licensing Agreement and the purchase of equipment.

 

*<u>Net Cash Provided by Financing Activities</u>* – During fiscal 2025, we were provided with net cash of 5,725,652 from financing activities consisting primarily of $1,818,000 from the proceeds of the sale of preferred stock, $2,050,100 from the proceeds of the sale of common stock and warrants, and $1,565,000 from the proceeds of the issuance of convertible debentures.

**Inventory**

Inventories are stated at cost, subject to the lower of cost or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated selling price less estimated costs of completion, disposal, and transportation. We regularly review inventory quantities on hand through an inventory count.

At March 31, 2025, the Company's inventory has a carrying value of $323,504 and consists of $21,782 of finished goods, $41,540 of work in process and $260,182 in raw material.

At March 31, 2024, the Company's inventory has a carrying value of $390,076 and consists of $35,442 of finished goods, $20,289 of work in process and $334,345 in raw material.

**MATERIAL COMMITMENTS**

**Convertible Notes Payable and Accrued Interest**

As of March 31, 2025, we are obligated to notes and accrued interest of $2,090,328.

**OFF-BALANCE SHEET ARRANGEMENTS**

As of March 31, 2025, and as of the date of this Annual Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

**GOING CONCERN**

The independent auditors' report accompanying our March 31, 2025, Form 10-K and financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared assuming that we will continue as a going concern, which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business. On March 26, 2025, the Company entered into a Subscription Agreement for $5,000,000 in a Series B Preferred Offering, whereby $600,000 was received, with the remaining $4,400,000 proceeds received in May and June 2025. Our working capital at March 31, 2025 was $1,591,212.

**CRITICAL ACCOUNTING POLICIES**

We prepare our consolidated financial statements in accordance with generally accepted accounting standards in the United States of America. Our significant accounting policies are described in Note 1 to our consolidated financial statements attached hereto. We believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of the consolidated financial statements.

**RECENTLY ISSUED ACCOUNTING STANDARDS**

The Company has reviewed the FASB issued ASU accounting pronouncements and interpretations thereof that have effective dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and do not believe that any new or modified principles will have a material impact on the Company's reported financial position or operations in the near term. The applicability of any standard is subject to formal review of the Company's financial management.

In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) - Accounting for Convertible Instruments and Contracts on an Entity's Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for the exceptions. The ASU also simplifies the diluted net income per share calculation in certain areas. The new guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of the standard on the consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," which replaces the existing "incurred loss" model for recognizing credit losses with an "expected loss" model referred to as the CECL model. Under the CECL model, the Company is required to present certain financial assets carried at amortized cost, such as accounts receivable, at the net amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted this standard in the consolidated financial statements for the year ended March 31, 2025. The change had no impact on the Company's financial statements.

All other newly issued but not yet effective accounting pronouncements have been deemed either immaterial or not applicable.

**<u>ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>**

Not applicable.

**<u>ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</u>**

The financial statements for the years ended March 31, 2025 and 2024 are being filed with this report and commence on page F-1, immediately following the signature page.

**<u>ITEM 9. CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</u>**

None.

**<u>ITEM 9A. CONTROLS AND PROCEDURES EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES</u>**

We maintain controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosures. Based upon their evaluation of those controls and procedures performed as of the end of the period covered by this report, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective.

**<u>Management's annual report on internal control over financial reporting</u>**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (GAAP) and includes those policies and procedures that:

● Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

● Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and

● Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on financial statements.

Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of March 31, 2025. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control — Integrated Framework (revised 2013). This assessment included an evaluation of the design and procedures of our control over financial reporting.

During the audit, we had a material audit adjustment for derivative liabilities and warrant discount with our convertible notes. Management has evaluated the effectiveness of the company's Internal Control Over Financial Reporting ("ICFR") and, due to the material weakness, management has concluded that ICFR was not effective as of the end of the fiscal year ending March 31, 2025. The company plans on tightening the ICFR controls moving forward and will be accounting for derivative liabilities and warrant discount.

Based on our assessment, our management concluded that as of March 31, 2025, our internal control over financial reporting was not effective.

**<u>ITEM 9B. OTHER INFORMATION</u>**

During the fiscal quarter ended March 31, 2025, none of our directors or officers (as defined in Section 16 of the Securities Exchange Act of 1934, as amended) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement," as defined in Item 408(a) of Regulation S-K.

**<u>ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTION THAT PREVENTS INSPECTIONS</u>**

Not Applicable.

**PART III**

**<u>ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</u>**

The following table sets forth the name, age, and position held with respect to our executive officers and directors as of July 10, 2025:

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| | | |
|:---|:---|:---|
| Name | Age | Positions and Offices With Registrant |
| John Lai | 62 | Chief Executive Officer, President, and Director |
| Garry Lowenthal | 65 | Chief Financial Officer |
| Spencer Breithaupt <sup>(2)</sup> | 64 | Director and Chair of our Nominating and Governance Committee |
| Joseph Jasper <sup>(1)(3)</sup> | 60 | Director and Chair of our Compensation Committee |
| Robert Costantino <sup>(1)(3)</sup> | 66 | Director and Chair of our Audit Committee |
| Diane Levitan <sup>(2)</sup> | 60 | Director |
| Robert Rudelius <sup>(1)(3)</sup> | 69 | Director and Chairman of the Board of Directors |
| Michael Eldred <sup>(2)</sup> | 56 | Director |

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(1) Member
 of the Audit Committee.

(2) Member
 of the Nominating and Governance Committee.

(3) Member
 of the Compensation Committee.

**Biographies of Directors and Officers**

***John Lai.*** Mr. Lai has served as a director and senior executive officer since March 2014, serving in various capacities that include serving as our Chief Financial Officer from May 2018 through December 2018 and serving as our Chief Executive Officer from March 2014 to May 2017 and June 2019 to present. From March 2012 to April 2016, Mr. Lai also was Chief Executive Officer and a director of Blue Earth Resources, Inc., a small public company that acquired and managed working interests in producing oil and gas leases in Louisiana. Mr. Lai has over thirty years of senior executive and operational management and financial experience while holding key executive positions with several public companies in various industries. In 1992, Mr. Lai founded, and until December 2012 was the principal owner and President of Genesis Capital Group, Inc., which provided significant consulting services to many public and private companies in powersports, technology, and other industries, while advising its clients in corporate development, mergers and acquisitions, and private and public capital-raising through equity offerings. Mr. Lai's role as a co-founder of our Company and his many years of experience as a chief executive officer of many public or private companies are material factors regarding his qualifications to serve on our Board of Directors.

***Garry Lowenthal.*** Mr. Lowenthal has over 25 years of extensive experience in senior operations and key finance management positions, both with private and public companies. He has developed a substantial background with equity capital raising transactions while managing both private placements and public offerings for various corporations. Mr. Lowenthal has vast financial and corporate management experience, including performing the functions as the Managing Partner of Security First International, Inc., a CFO advisory and management consulting firm, assuming the role of an advisor, acting chief financial officer and director of Elate Group, Inc. (Elate Moving LLC), a global moving and storage company based in New York City, through his CFO consulting company Security First International, Inc., and taking on the responsibilities of a director, Executive Vice President and Chief Financial Officer of Fision Corporation (OTCQB: FSSN). Furthermore, Mr. Lowenthal has served on the national board of Financial Executives International (FEI), a premier professional association for CFOs and other senior financial executives. He has also served as President of the Twin Cities Chapter of FEI and, in the past, as chairman of FEI's national technology committee. Mr. Lowenthal has been on the Alumni Advisory Board of the Carlson School of Management at the University of Minnesota where he graduated with a master's degree in taxation and finance and a Bachelor's of Science in Business degree in Accounting and an Associates in Liberal Arts degree from the University of Minnesota. He has also served as a District Chairman for the Boy Scouts of America and serves on the President's Cabinet for the local Council. Mr. Lowenthal is also a past President and Director for Kiwanis International in his local community club. As an operational CFO, along with his financial reporting and regulatory expertise, Mr. Lowenthal further understands the world of corporate governance, through his experiences serving as a fiduciary director. Finally, Mr. Lowenthal's experiences working for two of the largest CPA/Consulting firms, PricewaterhouseCoopers (PwC) and Deloitte, with various client engagements in diverse industries, allows him to bring a unique perspective as an advisor to Boards of Directors of public companies.

**Spencer Breithaupt**. Mr. Breithaupt has over 30 years of management and leadership experience in the veterinary space, most recently with MWI Animal Health, a subsidiary of Amerisource Bergen ("MWI"), from December 2009 through December 2022. He served in several positions at MWI, including as the Vice President of Sales from December 2015 through May 2020 and the Vice President of Sales and Supply Chain Solutions from May 2020 through December 2022. He oversaw account segmentation which allowed MWI to expand from being a regional player to the largest US nationwide animal health distributor. Prior to joining MWI, he served as the Director of National Accounts at Wyeth/Fort Dodge Animal Health from 2007–2009, where he developed a distributor strategy and implemented the first minimum advertised pricing ("MAP") model into the animal health industry. Mr. Breithaupt has also worked for Fortune 500 animal health companies, including Bristol Myer, Johnson & Johnson and Wyeth, where he held various sales and marketing roles. Growing up in the veterinarian industry as the son of a prominent veterinarian gave him great insight when launching his career into animal health. Mr. Breithaupt has seen the transformation of the animal-human bond, and it continues to make him passionate about improving our pet's lives. Mr. Breithaupt extensive experience in the animal health distributor business is a material factor which demonstrates his qualifications to serve on our Board of Directors.

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***Robert Costantino*.** Mr. Costantino has served as director of the Company since July 27, 2022. Mr. Costantino is a retired senior executive with several decades of experience serving as Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and in various other senior executive leadership positions at multiple large companies. Mr. Costantino is currently serving as a director of CURE Pharmaceutical Holdings Corp. (OTC: CURR), and several Yamaha Motor Finance companies. He served as Senior Executive Vice President, Chief Financial Officer, and Chief Operating Officer of WFS Financial (Nasdaq: WFSI), an automotive/commercial finance company from, while concurrently serving as Executive Vice President, Chief Financial Officer, and Chief Operating Officer of Westcorp (NYSE: WES), a regulated bank from 2005-2007. In each of these roles, Mr. Costantino was responsible for operational and financial oversight, including SEC filings, investor relations, and treasury. Mr. Costantino played a key role in negotiating the sale of both companies to Wachovia (Wells Fargo) for $3.9 billion. Prior to that, he was President, Chief Executive Officer and a director of Mitsubishi Motors Credit of America, an automotive finance company with over $10 billion in assets from 2002-2005, where he played a key role in improving profitability and negotiating the sale of the company's assets to Merrill Lynch. Prior to that, he served for 17 years in various management positions of increasing responsibility at Volvo Cars of North America, including serving as Senior Vice President and Chief Financial Officer of both the automotive parent company and the captive finance company. Mr. Costantino is also a retired Certified Public Accountant. Mr. Costantino's extensive executive leadership and financial experience, particularly in connection with publicly traded companies, demonstrates his qualifications to serve on our Board of Directors.

***Joseph Jasper***. Mr. Jasper has served as a director of the Company since August 20, 2018. He is a Chartered Financial Analyst who since 2018 has served as Chief Financial Officer and Chief Operating Officer for Windigo Logistics, Inc., a software-as-a-service company serving contractors within the logistics industry. From 2005 to 2018, Mr. Jasper served as Chief Executive Officer of Vermillion Capital Management, an institutional investment firm. From 2002 to 2005, Mr. Jasper was Managing Director and Director of Fixed Income Strategy and Marketing for Piper Jaffray Company. Prior to 2002, he spent 20 years managing, structuring and selling fixed income and equity securities at several leading investment banking firms, including U.S. Bancorp Libra and UBS PaineWebber. Mr. Jasper also serves as a director of Windigo Logistics, GroundCloud Safety, LLC, and Vermilion Capital Management, all privately-held companies. He has previously served as a director or principal advisor to many operating and venture-stage companies across a broad range of industries. Mr. Jasper received an MBA degree from the University of St. Thomas, where he also served as an Adjunct Professor of Finance. Mr. Jasper's extensive financing and accounting expertise are material factors which demonstrate his qualifications to serve on our Board of Directors.

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***Diane Levitan***. Dr. Levitan's wide-ranging career in veterinary medicine has spanned over three decades since receiving her Veterinariae Medicinae Doctoris from the University of Pennsylvania School of Veterinary Medicine. She practiced internal medicine, emergency medicine, and critical care at Tufts University School of Veterinary Medicine and later founded Peace Love Pets Veterinary Care, PLLC in Commack, New York, a small animal veterinary care general practice that also specializes in internal medicine, diagnostic ultrasound endoscopy, and minimally invasive surgery. Dr. Levitan has served on the board of many veterinary medicine organizations, such as the New York Board of Regent's Board for Veterinary Medicine, the American College of Hyperbaric Medicine, the American College of Veterinary Internal Medicine Foundation, and the International Veterinary Academy of Pain Management. Dr. Levitan has also served as a subject matter expert, consultant, and advisor to multiple businesses in the veterinary medicine industry. Dr. Levitan's career has also extended into education, including her current position as Associate Professor of Veterinary Skills at Long Island University College of Veterinary Medicine and serving as a lecturer for Merial and Pfizer Animal Pharmaceutical companies on leptospirosis, other diseases, and vaccinations. Dr. Levitan has also been a prolific author and media contributor in the world of veterinary medicine. She has published many articles in professional journals and texts on subjects such as hyperbaric oxygen therapy and endoscopy, as well as in consumer publications such as the New York Times. She has also made many radio and television appearances, including being a Merck Animal Health Media Spokesperson and appearing on CNN as a veterinary expert. Additionally, Dr. Levitan is the founder and president of Helping Promote Animal Welfare, Inc. (Helping PAW), a 501(c)(3) tax-exempt public charity focused on ending pet overpopulation through education to the public and offering general veterinary health care services. Dr. Levitan's extensive experience as a veterinarian is a material factor that demonstrates her qualifications to serve on our Board of Directors.

***Robert Rudelius***. Mr. Rudelius has served as a director of the Company since August 2018. Currently, he is the Chief Executive Officer and Managing Director of Noble Ventures, LLC, a company he founded in 2001 that provides advisory and consulting services to early and mid-stage companies in the information technology, communications, medical technology, and social e-commerce industries. He is also the CEO of Alera Medtech LLC, a medical devices company, and the co-founder, President & CEO of MedicaMetrix, Inc., a company that is developing transformative healthcare solutions for unmet medical needs. From April 1999 through May 2001, when it was acquired by StarNet L.P., Mr. Rudelius was the founder and CEO of Media DVX, Inc., a start-up business that provided a satellite-based, IP-multicasting alternative to transmitting television commercials via analog videotapes to television stations, networks, and cable television operators throughout North America. From April 1998 to April 1999, Mr. Rudelius was the President and Chief Operating Officer of Control Data Systems, Inc., during which time Mr. Rudelius reorganized and re-positioned the software company as a professional technology services company, resulting in the successful sale of the company to British Telecom. From October 1995 through April 1998, Mr. Rudelius was a founding Managing Partner of AT&T Solutions, Inc., a subsidiary of AT&T Inc. (NYSE: T), and headed the Media, Entertainment & Communications industry practice. From January 1990 through September 1995, Mr. Rudelius was a partner in McKinsey & Company's information, technology, and systems practice, during which time he headed the practice in Japan and the United Kingdom. Mr. Rudelius began his career at Arthur Andersen & Co. where he was a leader in the firm's financial accounting systems consulting practice. Mr. Rudelius served as a member of the Axogen, Inc. (NASDAQ: AXGN) Board of Directors for ten years from September 2010 through September 30, 2020, where he served as chairman of the audit committee and as a member of the compensation committee. Mr. Rudelius has an M.B.A. from the Kellogg School of Management at Northwestern University and a B.S. in mathematics and economics from Gustavus Adolphus College in St. Peter, Minnesota. Mr. Rudelius' qualifications to serve on our Board of Directors include his extensive executive leadership and financial experience, particularly in connection with rapid growth technology businesses, and his experience as a director of publicly traded companies.

***Michael Eldred***. Mr. Eldred previously served as president and CEO of North American Operations at Dechra Pharmaceutical. He joined Dechra in 2004 and was responsible for Dechra Veterinary Products' North American business until departing in June 2024. He was Dechra's first employee in the U.S., where he built the U.S., Mexican and Canadian teams to more than 250 people and helped grow sales to £191.6 million. He was also involved in more than 15 commercial agreements and acquisitions for Dechra, including Pharmaderm, DermaPet, Phycox Animal Health and Putney. Prior to Dechra, he served as director of Business Development and Corporate Business Unit at Virbac Corporation, an animal health pharmaceutical company. At Virbac, he directed and coordinated all acquisition, divestiture, licensing agreements, and business alliances strategic to the company. He was involved with such acquisitions as King Pharmaceutical's animal health products and Delmarva Laboratories. He also spearheaded in-licenses with Genesis Topical Spray and CHX chews. Mr. Eldred previously served as Virbac's director of Supply Chain and Customer Service, where he reduced order turnaround time from five days to one day as well as improved customer fill rate form 70% to 98%. Earlier in his career, Mr. Eldred served as director of Asia Pacific Poultry & North America Planning and Distribution at Fort Dodge Animal Health, a leading global manufacturer of animal health products for the livestock, companion animal, equine, swine, and poultry industries. He also previously held senior positions at Garmin International and Sanofi Animal Health. Since his departure from Dechra to present, Mr. Eldred has assisted companies as a strategic advisor and consultant. Mr. Eldred holds a BA in business from the University of Northern Iowa, and an MBA from University of Missouri-Kansas City. Mr. Eldred has seen the transformation of the animal-human bond, and it continues to make him passionate about improving our pet's lives.

**Family Relationships**

There are no family relationships between executive officers or directors of the Company.

**Skills and Qualifications of the Directors**

The Board believes that the qualifications of the directors, as set forth in their biographies, which are listed above, give them the qualifications and skills to serve as directors of the Company.

**CORPORATE GOVERNANCE**

**Director Independence**

Since August 13, 2021, our common stock and warrants have been listed on the Nasdaq National Market, or Nasdaq, under the symbols "PETV" and "PETVW," respectively. Under Nasdaq Rule 5605 ("Nasdaq Rules"), independent directors must comprise a majority of a listed company's board of directors.

Our Board of Directors has six independent members, consisting of Spencer Breithaupt, Robert Costantino, Joseph Jasper, Diane Levitan, Robert Rudelius, and Michael Eldred, as "independence" is defined under the applicable rules and regulations of the SEC and the listing standards of Nasdaq, and does not have a relationship with us (either directly or as a partner, stockholder, or officer of an organization that has a relationship with us) that would interfere with their exercise of independent judgment in carrying out their responsibilities as directors. Accordingly, a majority of our directors are independent, as required under the applicable Nasdaq rules.

**Delinquent Section 16(a) Reports**

Section 16(a) of the Securities Exchange Act requires our executive officers and directors, and persons who own more than 10% of our common stock, to file reports regarding ownership of, and transactions in, our securities with the Securities and Exchange Commission and to provide us with copies of those filings. To the Company's knowledge, based solely on a review of the Form 3's, 4's and 5's electronically filed with the SEC during fiscal 2025, all such filing requirements applicable to the Company's directors, executive officers, and greater than 10% beneficial owners were complied with.

**Committees of the Board of Directors**

We have an Audit Committee, Compensation Committee, and Nominating Committee. Our Audit Committee consists of three independent directors who are Robert Costantino (Chair), Joseph Jasper, and Robert Rudelius. Our Compensation Committee consists of three independent directors who are Joseph Jasper (Chair), Robert Rudelius, and Robert Costantino. Our Nominating Committee consists of three independent directors who are Spencer Breithaupt (Chair), Michael Eldred, and Diane Levitan.

**Code of Ethics**

We have adopted a Code of Ethics which applies to our board of directors, executive officers, and other employees. Our Code of Ethics outlines the broad principles of ethical business conduct we have adopted, including subject areas such as confidentiality, conflicts of interest, corporate opportunities, public disclosure reporting, protection of company assets, and compliance with applicable laws. A copy of our Code of Ethics is available without charge to any person by written request to us at our principal offices at 5151 Edina Industrial Blvd. Suite 575, Edina, MN 55439.

**Director Compensation**

The following table provides information on compensation paid to our non-employee directors for their services as members of our board of directors during our fiscal year ended March 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Director** | **Fees paid**<br> **in cash<br> ($)** | **Stock awards**<br> **($)<sup>(1)</sup>** | **Option**<br> **awards**<br> **($)<sup>(2)</sup>** | **All other**<br> **compensation**<br> **($)<sup>(3)</sup>** | **Total**<br> **($)** |
| Robert Costantino | $11500 | $9450 | $&nbsp;&nbsp;&nbsp;&nbsp;- | $8229 | $29179 |
| Joseph Jasper | $9500 | $9450 | $- | $7795 | $26745 |
| Robert Rudelius | $11500 | $9450 | $- | $7795 | $28745 |
| Spencer Breithaupt | $7500 | $9450 | $- | $6344 | $23294 |
| Diane Levitan | $5000 | $9450 | $- | $- | $14450 |
| Michael Eldred | $5000 | $9450 | $- | $37080 | $51530 |

---

(1) The
 value in this column reflects the aggregate grant date fair value of the stock award as computed in accordance with ASC Topic 718.
 Information regarding the valuation assumptions used in the calculations are included in "Note 11 – Stockholder's
 Equity" to our audited consolidated financial statements included in our 2025 Form 10-K. Share grants are issued at the beginning of each quarters' board service period.

(2) The
 value in this column reflects the aggregate grant date fair value of the stock options as
 computed in accordance with ASC Topic 718. Information regarding the valuation assumptions
 used in the calculations is included in "Note 11 – Stockholder's Equity"
 to our audited consolidated financial statements included in our 2025 Form 10-K. As of March
 31, 2025, the aggregate number of options outstanding (vested and unvested) for Ms. Levitan
 was 35,954 and has been fully expensed in the past. Stock options for all other Board Directors were canceled in connection with
 the stock option buyout program.

(3) The
 value in this column reflects the market value of restricted shares issued on the date of issuance.

**General Policy Regarding Compensation of Non-Employee Directors**

Directors who are not employees of the Company are paid director's fees, in cash, stock awards, stock options, or a combination thereof. In fiscal 2025, compensation was paid in cash and stock awards.

**<u>ITEM 11. EXECUTIVE COMPENSATION</u>**

The Company qualifies as a "smaller reporting company" under rules adopted by the SEC. Accordingly, the Company has provided scaled executive compensation disclosure that satisfies the requirements applicable to the Company in its status as a smaller reporting company. Under the scaled disclosure obligations, the Company is not required to provide, among other things, a compensation discussion and analysis or a compensation committee report, and certain other tabular and narrative disclosures relating to executive compensation.

Our named executive officers ("Named Executive Officers" or "NEO's") for fiscal year ended March 31, 2025 ("fiscal 2025") were as follows:

● John Lai, our Chief Executive Officer and President;

● Garry Lowenthal, our Chief Financial Officer; and

Certain information regarding the compensation of our Named Executive Officer for our fiscal years ended March 31, 2025 ("fiscal 2025") and March 31, 2024 ("fiscal 2024") is provided on the following pages.

**SUMMARY COMPENSATION TABLE**

The following table sets forth information regarding the compensation paid to or earned by our Named Executive Officers for fiscal 2025 and 2024.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position**  | **Year** | **Salary<br> ($)<sup>(1)</sup>** | **Bonus<br> ($)** | **Stock Awards<br> ($)<sup>(2)</sup>** | **Non-Equity Incentive Plan Compensation<br> ($)** | **All Other Compensation<br> ($)<sup>(3)</sup>** | **Total <br> ($)** |
| *John Lai* | 2025 | 166667 | 25000 | 297700 | – $| 3912 | $493279 |
| *CEO and President* | 2024 | 350000 |  | 143500 | – $| 3912 | $497412 |
| *Garry Lowenthal* | 2025 | 200000 | 25000 | 257950 | – | 8220 | $491170 |
| *Chief Financial *Officer<sup>(6)</sup>* | 2024 | 22778 | 10000<sup>(7)</sup> |  | – |  | $32778 |
| *Robert J Folkes* | 2025 |  |  |  | – $|  | $— |
| *Chief Financial *Officer<sup>(4)</sup>* | 2024 | 58923 |  | 14980 | – $| 13657 | $87560 |
| *Randall Meyer* | 2025 | 153750 |  |  | – $| 13008 | $166758 |
| *Chief Operating *Officer<sup>(**5)**</sup>* | 2024 | 270000 |  | 23184 | – $| 12912 | $306096 |

---

(1) In
 lieu of receiving cash in the amount of $29,167 for one month's salary payment, Mr.
 Lai received an aggregate of 10,100 shares of the Company's common stock. The stock
 was valued at a price of $2.8878 per share in fiscal year 2023.

(2) Amounts
 shown represent grant date fair value computed in accordance with ASC Topic 718, with respect to restricted stock awards (based on
 the closing price of our common stock on the grant date) and stock option awards. Information
 regarding the valuation assumptions used in the calculations is included in "Note 11 – Stockholder's Equity"
 of our audited consolidated financial statements included in our 2023 Form 10-K.

(3) Represents
 the payment of health insurance premiums by the Company for Mr. Lai and Mr. Folkes.

(4) Mr.
 Folkes was appointed to serve as the Company's Chief Financial Officer on April 14, 2021 and resigned as of February 29, 2024.

(5) Mr.
 Meyer was appointed to serve as the Company's Chief Operating Officer on September 10, 2021 and his poition was terminated
 on January 31, 2025.

(6) Mr.
 Lowenthal was appointed to serve as the Company's Chief Financial Officer on March 8, 2024.

(7) Mr. Lowenthal received a $10,000 signing bonus with his employment contract.

**Narrative Disclosure to the Summary Compensation Table**

The following is a discussion of certain terms that we believe are necessary to understand the information disclosed in the Summary Compensation Table.

***Base Salaries***

The Company's Named Executive Officers receive a base salary for services rendered to the Company, which is set forth in their respective employment agreements. The base salary payable to each Named Executive Officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role, and responsibilities. From April 1, 2020, through September 8, 2021, Mr. Lai received a base salary of $100,000 which was increased to $275,000, effective as of September 1, 2022 and increased to $350,000 as of November 1, 2022. On May 1, 2025, Mr. Lai agreed to lower his annual base salary to $150,000 per year.

Mr. Lowenthal joined the Company on March 8, 2024, and his base salary was $200,000 per year, and remains at this level as of March 31, 2025.

Mr. Folkes joined the Company on April 14, 2021, and his initial salary was $190,000 per year, which was increased to $240,000 per year effective as of September 1, 2022 and increased to $300,000 as of November 1, 2022. Mr. Folkes resigned on February 29, 2024.

Mr. Meyer joined the Company, as its Chief Operating Officer, on September 1, 2021 and his base salary is $220,000 per year which was increased to $270,000 as of November 1, 2022. Mr. Meyer's position was terminated on January 31, 2025.

In February 2023, Mr. Lai agreed that he would receive his salary payments in shares of the Company's common stock in lieu of cash from March 1, 2023 through August 31, 2023 (the "Interim Period") The Compensation Committee approved issuing 60,600 Shares (the "Total Interim Shares") to Mr. Lai for his service during the Interim Period as a restricted stock award unit agreement ("RSU Award Agreement") under the Equity Incentive Plan. The Compensation Committee calculated the number of Total Interim Shares by taking (A) Mr. Lai's salary during the Interim Period ($175,000) divided by (B) the volume weighted average closing price of the Company's common stock during the 10-day period preceding February 22, 2023 ($2.8878), rounded up to the nearest whole share. The Compensation Committee approved the vesting of 10,100 of the RSU's on March 1, 2023, with an additional 10,100 of the RSU's vesting on the first day of each month thereafter such that all of the RSU's would be fully vested on August 1, 2023, subject to Mr. Lai's continued employment with the Company on each applicable vesting date. Additional terms of the RSU Award Agreement are set forth in the Equity Incentive Plan.

**Bonuses**

In November 2021, the Company established a bonus plan for its Named Executives with a performance target based on total revenues for fiscal 2022. If the Company achieved the performance target, the Named Executives would receive a bonus equal to a certain percentage of their respective salary. The Company realized that the performance target would not be achieved because the Company's ability to sell its lead product, Spryng®, was limited because it did not have canine and equine studies which distributors and other vendors needed to review before purchasing the Company's products. The Compensation Committee determined that the performance target was unrealistic and not an appropriate target for the Company at this time. The Compensation Committee believed that the Named Executives and other employees had done exceptional work in transitioning the Company from being a start-up company to a revenue-producing company. As such, the Compensation Committee awarded discretionary bonuses to the Named Executives and other employees. The Compensation Committee awarded discretionary bonuses to Mr. Lai, Mr. Folkes, and Mr. Meyers for their services in fiscal 2022 in the amounts of $20,000, $100,000, and $30,000, respectively. The Company paid these bonuses to the Named Executive Officers in July 2022.

In November 2022, the Company established target bonuses for a bonus plan for its Named Executives with performance targets based on total revenues and individual objectives for fiscal 2023. The Company did not achieve its revenue target for fiscal 2023, so the Named Executives did not receive performance bonuses under the Bonus Plan. As such, the Compensation Committee did not award discretionary bonuses to any Named Executive Officers in fiscal 2023.

In November 2023, the Company established target bonuses for a bonus plan for its Named Executive Officers with performance targets based on total revenues and individual objectives for fiscal 2024. The Company did not achieve its revenue target for fiscal 2024, so the Named Executive Officers did not receive performance bonuses under the Bonus Plan.

During the fiscal year 2025, the Compensation Committee approved a cash bonus of $25,000 to each of Mr. Lai and Mr. Lowenthal. The Compensation Committee also approved $25,000 worth of the Company's restricted common stock to each of Mr. Lai and Mr. Lowenthal as bonus compensation. Also during the year, shares of stock were issued to John Lai and Garry Lowenthal for signing bonus (Lowenthal) and for periodic quarterly performance stock bonuses (Lai and Lowenthal). The total stock awards are illustrated in the above summary compensation table.

**Equity Compensation**

Our Compensation Committee administers our 2020 Equity Incentive Plan (the "Equity Incentive Plan") and approves the amount of, and terms applicable to, grants of stock options, restricted stock units, and other types of equity awards to employees, including the Named Executive Officers. The Equity Incentive Plan permits the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units ("RSUs), and stock bonus awards (all such types of awards, collectively, "equity awards"), although incentive stock options may only be granted to employees.

On April 14, 2021, the Company granted 34,000 RSUs to Mr. Folkes pursuant to the terms of his employment agreement. These RSUs vest over a three-year period, with 10,000 RSUs vesting on January 1, 2022, 10,000 vesting on January 1, 2023, and 14,000 vesting on January 1, 2024, subject to Mr. Folkes remaining employed at the Company. These RSUs will automatically vest if there is a Change in Control (as defined in our Equity Incentive Plan).

On September 9, 2021, the Compensation Committee granted RSUs to Mr. Lai, Mr. Folkes, and Mr. Meyer for their exceptional performance in assisting the Company in closing its public offering in which it raised $11.2 million in gross proceeds and listed its common stock and warrants on the NASDAQ Capital Market. The Named Executive Officers received the following RSU grants ("November 2021 RSU Grants"): Mr. Lai – 150,000 RSUs, Mr. Folkes – 54,000 RSUs, and Mr. Meyer – 65,000 RSUs. These RSUs vest in three installments, with 1/3 vesting on March 31, 2022, 1/3 vesting on March 31, 2023, and 1/3 vesting on March 31, 2024, based upon continued employment with the Company. These RSUs will automatically vest if there is a Change in Control (as defined in our Equity Incentive Plan).

On October 19, 2022, the Compensation Committee granted nonqualified stock options of 200,000 shares to Mr. Folkes the vest equally over a three-year period with 66,667 shares beginning on October 19, 2022. These options will automatically vest if there is a Change in Control (as defined in our Equity Incentive Plan).

On February 24, 2022, the Compensation Committee entered into a second amendment to an employment agreement with Mr. Lai pursuant to which it granted him equity in exchange for salary for the six-month period beginning on March 1, 2023 and ending on August 31, 2023. The Company granted Mr. Lai totaling 60,600 shares which vest in equal monthly amounts of 10,100 shares beginning March 1, 2023 in lieu of his salary payments for a six-month period.

For the grant date fair values of the options and RSUs, please see the Summary Compensation Table above.

**Perquisites**

We offer health insurance to our Named Executive Officers on the same basis that these benefits are offered to our other eligible employees. We offer a 401(k) plan to all eligible employees. The Company also provides other benefits to its Named Executive Officers on the same basis as provided to all its employees, including vacation and paid holidays.

**OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END 2025**

The following table sets forth for each Named Executive Officer, information regarding outstanding equity awards as of March 31, 2025. Market value is based on the closing stock price of $.80 on March 31, 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Option Awards** | **Option Awards** | **Option Awards** | **Option Awards** | **Stock Awards** | **Stock Awards** |
| <br>**Name** |<br>**Grant Date** | **Number of**<br> **securities**<br> **underlying**<br> **unexercised**<br> **options**<br> **exercisable**<br> **(#)** | **Number of**<br> **securities**<br> **underlying**<br> **unexercised**<br> **options**<br> **unexercisable**<br> **(#)** | **Option**<br> **exercise**<br> **price**<br> **($)** | **Option**<br> **expiration**<br> **date** | **Number of**<br> **shares or**<br> **units**<br> **of stock**<br> **that**<br> **have not**<br> **vested**<br> **(#)** | **Market**<br> **value of**<br> **shares or**<br> **units of**<br> **stock that**<br> **have not**<br> **vested**<br> **($)<sup>(1)</sup>** |
| John Lai | 10/31/2019 | 90000 |  | 2.24 | 10/31/2024 |  | $— |
|  | 12/31/2019 | 19847 |  | 1.95 | 12/31/2024 |  |  |
|  | 3/31/2020 | 24253 |  | 1.27 | 3/31/2025 |  |  |
|  | 6/30/2020 | 7441 |  | 1.60 | 6/30/2025 |  |  |
|  | 9/25/2021 |  |  |  |  | 100500<sup>(2)</sup> | 276375 |
| Garry Lowenthal <sup>(6)</sup> |  |  |  |  |  |  | $— |
| Randall Meyer | 1/15/2020 | 10547 |  | 1.20 | 1/15/2029 |  | $— |
|  | 12/31/2019 | 1213 |  | 1.95 | 12/31/2024 |  |  |
|  | 3/31/2020 | 1104 |  | 1.27 | 3/31/2025 |  |  |
|  | 6/30/2020 | 559 |  | 1.60 | 6/30/2025 |  |  |
|  | 9/09/2021 |  |  |  |  | 21666<sup>(5)</sup> | 59582 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 value reported for the RSUs was determined by multiplying the number of unvested RSUs by the closing market price of $2.75 of the
 Company's common stock on March 31, 2023.

(2) Comprised
 of 50,000 unvested shares underlying an RSU award granted on September 9, 2021, which will vest on March 31, 2024, and 50,500 unvested
 shares underlying an RSU award granted on February 24, 2023, which will vest in equal monthly installments of 10,100 shares beginning
 April 1, 2023, with both awards subject to the executive's continued employment with the Company. The RSUs will vest automatically
 if there is a Change of Control (as defined in our Equity Incentive Plan).

(3) Mr.
 Folkes was granted a nonqualified stock option grant on October 19, 2022 to purchase 200,000 shares of our common stock at an exercise
 price of $2.40 per share. The options have a seven-year life and vest 66,667 shares on October 19. 2022, 66,667 shares on October
 19, 2023, and 66,666 shares on October 19, 2024. The options will vest automatically if there is a change of control (as defined
 in our Equity Incentive Plan).

(4) Comprised
 of 14,000 unvested shares underlying an RSU award granted on April 14, 2021, which will vest on January 1, 2024, and 18,000 unvested
 shares underlying an RSU award granted on September 9, 2021, which will vest on March 31, 2024, with both RSU awards subject to the
 executive's continued employment with the Company. The RSUs will vest automatically if there is a change of control (as defined
 in our Equity Incentive Plan).

(5) Comprised
 of 21,666 unvested shares underlying an RSU award granted on September 9, 2021, which will
 vest on March 31, 2024, subject to the executive's continued employment with the Company.
 The RSUs will vest automatically if there is a Change of Control (as defined in our Equity
 Incentive Plan).

(6) Mr.
 Lowenthal employment began on March 8, 2024. No RSUs or stock options were issued in fiscal year 2024 or 2025. Mr. Lowenthal's
 employment agreement issued 90,000 shares of restricted common stock, based on a vesting schedule. During the fiscal year 2025, the
 Compensation Committee removed the vesting schedule and had the restricted shares issued.

**Executive Employment Agreements**

*Prior Employment Agreements*

 

The Company entered into an employment agreement ("2019 Agreement") with John Lai on October 1, 2019, to serve as the Company's Chief Executive Officer for a term of 3 years. Mr. Lai's annual base salary was a minimum of $100,000 or such higher amount, as determined by the Board. Mr. Lai could be terminated for Cause or without cause upon ten (10) days advance written notice. Mr. Lai was eligible to receive discretionary bonuses, as determined by the Board, and eligible for all employee benefits provided to executives of similar tenure. His 2019 Agreement contained customary confidentiality and non-competition provisions which survived for a period of one year after his employment with the Company was terminated. As discussed below, Mr. Lai's 2019 Agreement was replaced with a new employment agreement on November 10, 2021.

The Company entered into an employment agreement ("April 2021 Agreement") with Robert Folkes on April 14, 2021, to serve as the Company's Chief Financial Officer. The employment agreement was for a term of approximately two years and nine months and terminated on January 31, 2024. Mr. Folkes' annual base salary was $190,000 per year and he was eligible to receive a bonus of up to 50% of his base salary based upon the achievement of performance goals developed by the Compensation Committee. He could be terminated for cause or without cause upon ten (10) days advance written notice. His employment agreement contained customary confidentiality and non-competition provisions which survived for a period of one year after his employment with the Company was terminated. As discussed below, Mr. Folkes April 2021 Agreement was replaced with a new employment agreement on November 10, 2021

*Current Employment Agreements*

Effective as of November 10, 2021, the Company entered into new employment agreements with Mr. Lai, which replaced his 2019 Agreement, and Mr. Folkes which replaced his April 2021 Agreement. In addition, the Company entered into a new employment agreement with Randall Meyer to serve as the Company's Chief Operating Officer effective as of November 10, 2021. All of these employment agreements were amended in November 2022 to increase the base salaries of the executive officers, effective as of November 1, 2022. In addition, Mr. Lai's employment agreement was amended in February 2023 to provide that he would receive his salary payments in the form of equity instead of cash for the six-month period beginning on March 1, 2023 through August 31, 2023. With the exception of the salary and severance payments, the employment agreements are substantially similar.

All of these employment agreements expire on September 30, 2024. Messrs. Lai, Folkes, and Meyer each have annual base salaries of $350,000, $300,000, and $270,000, respectively, subject to potential increase or decrease from time to time as determined by the Compensation Committee of the Board of Directors. As previously noted, Mr. Lai will be receiving his salary payments in shares of the Company's common stock from March 1, 2023 through August 31, 2023. The Compensation Committee approved issuing 60,600 Shares (the "Total Interim Shares") to Mr. Lai for his service during the Interim Period as a restricted stock award unit agreement ("RSU Award Agreement") under the Company's Equity Incentive Plan. The Compensation Committee calculated the number of Total Interim Shares by taking (A) Mr. Lai's salary during the Interim Period ($175,000) divided by (B) the volume-weighted average closing price of the Company's common stock during the 10-day period preceding February 22, 2023 ($2.8878), rounded up to the nearest whole share. The Compensation Committee approved the vesting of 10,100 of the RSUs on March 1, 2023, with an additional 10,100 of the RSUs vesting on the first day of each month thereafter such that all of the RSUs would be fully vested on August 1, 2023, subject to Mr. Lai's continued employment with the Company through each applicable vesting date. Additional terms of the RSU Award Agreement are set forth in the Equity Incentive Plan. Effective May 1, 2024, an Amendment was signed to Mr. Lai's employment agreement lowering his base annual salary from $350,000 to $150,000 per year, with a term extension to March 31, 2027.

The employment agreements also provide for a target annual bonus as determined by the Compensation Committee. In addition to an annual salary and bonus, the employment agreements provide that the executive officers are entitled to participate in any equity and/or long-term compensation programs established by the Company for senior executive officers and all of the Company's retirement, group life, health, and disability insurance plans and any other employee benefit plans.

The employment agreements provide for termination of the executive officers at any time by the Company for Cause (as defined in the employment agreements) or without Cause. If an executive officer is terminated for Cause, he will receive his salary through the termination date and reimbursement of any unpaid expenses and accrued but unused vacation/paid time off ("Accrued Obligations"). If the executive officer's employment is terminated by the Company without Cause, subject to the execution of a release of any and all claims or potential claims against the Company, the executive officer will be entitled to receive a severance payment, his accrued but unpaid bonus, if any, and any Accrued Obligations owed through the termination date, in a lump sum payment within 10 days after the termination date. Mr. Folkes will receive a severance payment equal to 6 months of his base salary. Mr. Lai and Mr. Meyer will each receive a severance payment equal to 1 month's base salary. If the executive's employment is terminated as a result of his death or disability, he or his estate will receive his compensation through the date of termination, his accrued and unpaid bonus, if any, and Accrued Obligations through the date of termination.

Each executive officer is required to agree to non-competition, non-solicitation, and confidentiality obligations. The confidentiality covenants are perpetual, while the non-compete and non-solicitation covenants apply during the term of the new employment agreements and for 12 months following the executive officer's termination.

On January 19, 2024, Robert J. Folkes informed the Board of Directors (the "Board") of PetVivo Holdings, Inc. (the "Company") that he will be resigning as Chief Financial Officer ("CFO") of the Company, effective as of February 2, 2024. Mr. Folkes informed the Board that he will continue to provide CFO and accounting services to the Company, until it hires a new full-time Chief Financial Officer. The Company and Mr. Folkes entered into a transition services agreement on or before February 2, 2024 which ended March 31, 2024.

On March 8, 2024, PetVivo Holdings, Inc. (the "Company") appointed Garry Lowenthal to serve as the Company's Chief Financial Officer, with an annual salary of $200,000 per year, plus a $10,000 signing bonus with a term of three years. Mr. Lowenthal was also granted 90,000 RSU shares vesting at 45,000 shares on January 28, 2025 and 45,000 shares on January 28, 2026. During the fiscal year ending March 31, 2025, the Compensation Committee removed the vesting schedule for Mr. Lowenthal.

Effective January 31, 2025, Randall Meyer's position as Chief Operating Officer was eliminated and Mr. Meyer's employment terminated on January 31, 2025. Also, Mr. Meyer had an employment agreement that ended on September 30, 2024, whereby his salary was reduced from $270,000 per year to $150,000 per year.

**Potential Payments on Change in Control or Termination without Cause under November RSU Grants**

The employment agreements for Mr. Lai, Mr. Lowenthal, and Mr. Meyer do not contain any provisions providing for the acceleration of any salary or bonus payments if there is a change in control. The RSU Grants awarded to Mr. Lai, Mr. Folkes, and Mr. Meyer on September 9, 2021, and to Mr. Folkes on April 14, 2021 pursuant to our Equity Incentive Plan contain provisions that provide for accelerated vesting of the RSUs if there is a change of control of the Company (as such term is defined in the Equity Incentive Plan). In addition, if Mr. Lai, Mr. Folkes, or Mr. Meyer is terminated without cause, any RSUs that would have vested on or before the first anniversary of such termination had the executive remained employed shall be accelerated and deemed to have vested as of the termination date. Any time-based Restricted Shares that have not vested as described above may not be transferred and will be forfeited on the date the Named Executive Officer's employment with the Company terminates.

**<u>ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</u>**

As of July 10, 2025 (the "Record Date"), we had 24,388,731 shares of our common stock issued and outstanding. The following table sets forth, as of the Record Date, information concerning the beneficial ownership of shares of our common stock held by our directors, our named executive officers, our directors, and executive officers as a group, and each person known by us to be a beneficial owner of more than 5% of our outstanding common stock. Unless otherwise indicated, the business address of each of our directors, executive officers, and beneficial owners of more than 5% of our outstanding common stock is c/o PetVivo Holdings, Inc., 5151 Edina Industrial Blvd. Suite 575, Edina, MN 55439. Each person has sole voting and investment power with respect to the shares of our common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

---

| | | |
|:---|:---|:---|
| **Name of Beneficial Owner<sup>(1)</sup>** | **Number of**<br> **Shares**<br> **Beneficially**<br> **Owned** | **Beneficial**<br> **Ownership (%)** |
| John Lai <sup>(2)</sup> | 1729496 | 7.12% |
| Garry Lowenthal <sup>(3)</sup> | 445316 | 1.83% |
| Randall Meyer <sup>(4)</sup> | 631952 | 2.60% |
| Joseph Jasper <sup>(6)</sup> | 106754 | 0.44% |
| Diane Levitan <sup>(7)</sup> | 70000 | 0.29% |
| Robert Rudelius <sup>(8)</sup> | 342280 | 1.41% |
| Robert Costantino <sup>(9)</sup> | 79703 | 0.33% |
| Spencer Breithaupt<sup>(10)</sup> | 70000 | 0.29% |
| Michael Eldred<sup>(11)</sup> | 106250 | 0.44% |
| All Directors and Executive Officers as a Group (9 Persons) <sup>(12)</sup> | 3581751 | 14.74% |
| **Owners of more than 5% of our Stock** |  |  |
| Alan Sarroff <sup>(13)</sup> | 5620002 | 23.13% |
| Stanley Cruden <sup>(14)</sup> | 2413470 | 9.93% |

---

\* Less than one percent.

(1) Unless
 otherwise indicated, the business address of each officer and director of the Company is c/o PetVivo Holdings, Inc., 5151 Edina Industrial
 Boulevard, Suite 575, Minneapolis, MN 55439.

(2) Amount
 consists of 1,577,581 shares owned by Mr. Lai and warrants to purchase 141,815 shares and RSUs for 10,100 shares that are vested
 or will vest within 60 days of the Record Date.

(3) Garry
 Lowenthal was granted 90,000 common shares to vest as follows: 45,000 shares on January 28, 2025and 45,000 shares on January 28,
 2026. During the fiscal year ending March 31, 2025, the Compensation Committee removed the vesting schedule for Mr. Lowenthal. Amount
 consists of 445,316 shares owned by Mr. Lowenthal.

(4) Amount
 consists of 618,529 shares that are owned directly by Mr. Meyer and includes warrants to purchase 13,423 shares that are vested or
 will vest within 60 days of the Record Date. Mr. Meyer's last day of employment was January 31, 2025.

(5) Not
 used.

(6) Amount
 includes 106,754 shares held by Mr. Jasper.

(7) Amount
 consists 70,000 shares held by Ms. Levitan and options held by Ms. Levitan to purchase 35,954 shares at $1.06 per share that have
 vested or will vest within 60 days of the Record Date.

(8) Amount
 consists of 342,280 shares held by Mr. Rudelius directly, in his IRA, and by Noble Ventures,
 LLC,a company controlled by Mr. Rudelius.

(9) Amount
 consists of 79,703 shares held by Mr. Costantino.

(10) Amount
 consists of 70,000 shares held by Mr. Breithaupt.

(11) Amount
 consists of 106,250 shares held by Mr. Eldred.

(12) Amount
 includes 3,581,751 shares held by the Named Executive Officers and Directors directly, as a group of nine (9) persons.

(13) As
 reported in Mr. Sarroff's Schedule 13G filed with the SEC on February 5, 2025, reported ownership as A.L. Sarroff Fund, LLC,.
 Mr. Sarroff's directly owns 5,620,002 common shares and 4,638,696 warrants as follows: The Warrants are exercisable on the
 following schedule: $1,166,000.00 exercisable as of August 4, 2026, 111,000 exercisable as of December 6, 2026, and 861,696 as of
 April 29, 2027 and 2,500,000 exercisable as of July 9, 2027.

(14) As
 reported in Mr. Cruden's Schedule 13G filed with the SEC on March 31, 2025, Mr. Cruden directly owns 2,413,470 common shares.

**<u>ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE</u>**

The following is a summary of the transactions since April 1, 2020 between the Company and its executive officers, directors, nominees for directors, principal shareholders, and related parties involving amounts in excess of $120,000 or that the Company has chosen to voluntarily disclose.

**David Masters**

*Note and Settlement Agreement*

 

Effective September 1, 2020, the Company entered into two debt settlement agreements with David B. Masters, a director of the Company, pursuant to (i) an Amendment to Promissory Note ("Amendment") which amended certain outstanding promissory notes dated September 5, 2013, February 11, 2014, and August 14, 2014 (collectively, the "Outstanding Notes") issued by Gel-Del, the Company's wholly-owned subsidiary, with an aggregate amount owed of $65,700 and (ii) a Promissory Note ("Note") having a principal amount of $195,000, which represents accrued salary owed to Dr. Masters. The Amendment extends, for up to an additional two years and under the same terms as originally entered into, the Outstanding Notes. The Company also entered into a Settlement and General Release ("Settlement Agreement") with Dr. Masters that provides for the settlement and general release of any and all past claims, demands, damages, judgements, causes of action and liabilities that Dr. Masters may have had, may currently have or may acquire against the Company and its subsidiaries, including, but not limited to any claims related to (a) the ownership, operation, business, or financial condition of Company or its business, (b) any promissory note, loan, contract, agreement or other arrangement, whether verbal or written, including all unpaid interest charges, late fees, penalties or any other charges thereon, entered into or established between Dr. Masters and his affiliates and the Company on or prior to the September 1, 2020 or (c) the employment of Dr. Masters by the Company (except for claims directly relating to the breach of the Amendment, the Note or the Consulting Agreement).

Effective October 15, 2020, we entered into a note conversion agreement with David B. Masters in which he agreed to convert his Promissory Note having an outstanding principal amount of $192,500 plus a conversion fee of $3,500 into units (the "Units") consisting of one share of the Company's common stock and one warrant to purchase one share of Common Stock, as part of the Company's public offering of Units.

At the closing of the Company's public offering on August 13, 2021, the Note was converted into 43,556 Units, which consisted of 43,556 shares of the Company's common stock and warrant to purchase 43,556 shares of our common stock. The warrants have an exercise price of $5.625 per share and expire on August 13, 2026. The Company also repaid the outstanding balance under the Amendment, which was $25,954 as of the closing date of the public offering.

David Masters, a former employee, board member, and consultant to the Company, has threatened to file suit against the Company to recover in excess of $2 million. Masters' threatened litigation relates to allegations that the Company promised him additional compensation, shares, warrants, and future employment while he was associated with the Company. The Company mediated these claims with Masters in 2022 and executed a mediated settlement agreement resolving these claims for a one-time payment of $180,000, to be effective upon execution of a long form agreement containing these and other settlement terms. The parties appointed the mediator as arbitrator to resolve any disputes arising during the drafting of the long form agreement on commercially reasonable terms. In early 2023, Masters commenced arbitration to have certain terms in the long form agreement decided. The arbitrator issued an award setting the final terms of the agreement.

In September 2023, Masters executed the long-term agreement, and the Company recorded a settlement expense of $180,000. The settlement was paid in October 2023.

**John Lai**

On December 16, 2019, PetVivo, John Lai, Wesley Hayne, and Edward Wink entered into an escrow agreement ("Escrow Agreement") which replaced the prior escrow agreement dated June 7, 2017 between the parties. Pursuant to the Escrow Agreement, the escrow agent held 254,018 shares of the Company's common stock registered in the name of Mr. Lai in escrow, which shares would be released when (i) PetVivo obtains equity financing in an amount of at least $5 million and (ii) PetVivo's listed on Nasdaq, the New York Stock Exchange, or an equivalent securities exchange. This condition was met on August 13, 2021, and the shares were released to Mr. Lai.

In May 2021, Mr. Lai converted 42,188 warrants into common stock with an exercise and conversion price of $1.33 per share into 36,915 shares of our common stock on a cashless basis pursuant to the warrants' cashless conversion feature.

**<u>ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES</u>**

**Auditor Information:**

Auditor Name: Stephano Slack LLC

PCAOB ID: 3523

Location: Wayne, Pennsylvania

**Audit Fees**

The aggregate fees billed for the fiscal years ended March 31, 2025 and 2024 for professional services rendered by Stephano Slack LLC, the principal accountant for the audit of the Company's annual financial statements included in our Form 10-K and review of our quarterly unaudited financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $47,000 and $0 respectively.

Assurance Dimensions provided services for the year ended March 31, 2024. The aggregate fees billed for the fiscal years ended March 31, 2025 and 2024 for professional services rendered by Assurance Dimensions, the principal accountant for the audit of the Company's annual financial statements included in our Form 10-K and review of our quarterly unaudited financial statements that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $0 and $34,486, respectively.

**Audit-Related Fees**

For the fiscal years ended March 31, 2025 and 2024, there were no fees billed for services reasonably related to the performance of the audit or review of the financial statements outside of those fees disclosed above under "Audit Fees."

**Tax Fees**

For the fiscal years ended March 31, 2025, and 2024, there were no fees billed for services for tax compliance, tax advice, and tax planning work by our principal accountants.

**All Other Fees**

None.

**Pre-Approval Policies and Procedures**

The Audit Committee's policy is to pre-approve all audit and permissible non-audit services provided by the independent public accountants. These services may include audit services, audit-related services, tax services and other services. Pre-approval is generally provided for up to one year and any pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. Stephano Slack LLC, Assurance Dimensions, and management are required to periodically report to the Audit Committee regarding the extent of services provided by the independent public accountants in accordance with this pre-approval, and the fees for the services performed to date. The Audit Committee may also pre-approve particular services on a case by case basis. The Audit Committee approved one hundred percent (100%) of all services provided by Stephano Slack LLC and Assurance Dimension during Fiscal 2025 and 2024.

The Audit Committee has considered the nature and amount of the fees billed by Stephano Slack LLC and Assurance Dimension, and believes that the provision of the services for activities unrelated to the audit is compatible with maintaining the independence of both Stephano Slack LLC and Assurance Dimension.

**PART IV**

**<u>ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES</u>**

(a) Financial
 Statements.

Included in Item 8

(b) Exhibits
 required by Item 601.

&nbsp;&nbsp;&nbsp;&nbsp;3.1 [Articles of Incorporation, as amended (incorporated by reference to Exhibit 3.1 in the Company's Registration Statement on Form S-8 filed with the SEC on June 17, 2022).](https://www.sec.gov/Archives/edgar/data/1512922/000149315222017205/ex3-1.htm)

3.2 [Bylaws (incorporated by reference to Exhibit 3.3 in the Company's Registration Statement on Form S-1 (File No. 333-173569) filed with the SEC on April 18, 2011).](https://www.sec.gov/Archives/edgar/data/1512922/000146929911000228/techex33.htm)

4.1 [Description of Common Stock (incorporated by reference to Exhibit 4.1 in the Company's Annual Report on Form 10-K for fiscal 202 filed with the SEC on June 24, 2022).](https://www.sec.gov/Archives/edgar/data/1512922/000149315221015435/ex4-1.htm)

10.1 [Employment Agreement effective as of November 1, 2021 between PetVivo Holdings, Inc. and John Lai, as amended in November 2022 and February 2023 and further amended May 1, 2025.\*+](ex10-1.htm)

10.2 [Employment Agreement effective as of November 1, 2021 between PetVivo Holdings, Inc. and Robert Folkes, as amended in November 2022.\*+](ex10-2.htm)

10.3 [Employment Agreement effective as of November 1, 2021 between PetVivo Holdings, Inc. and Randall Meyer, as amended in November 2022.\*+](ex10-3.htm)

10.4 [Employment Agreement and Restricted Stock Award Agreement, dated March 8, 2024, between PetVivo Holdings, Inc. and Garry Lowenthal (incorporated by reference to Exhibit 10.1 in the Company's Form 8-K filed with the SEC on March 14, 2024)](https://www.sec.gov/Archives/edgar/data/1512922/000149315224009946/ex10-1.htm)

10.5 [PetVivo, Inc. 2020 Equity Compensation Plan (incorporated by reference to Appendix B in the Company's Definitive Information Statement filed with the SEC on September 1, 2020).+](https://www.sec.gov/Archives/edgar/data/1512922/000149315220017059/formdef-14c.htm)

10.6 [Form of Employee Stock Option Agreement for use with the PetVivo Holdings, Inc. 2020 Equity Incentive Plan (incorporated by reference to Exhibit 10.5 in the Company's Annual Report on Form 10-K for fiscal 2022 filed with the SEC on June 24, 2022).+](https://www.sec.gov/Archives/edgar/data/1512922/000149315222017738/ex10-5.htm)

10.7 [Form of Non-Employee Director Stock Option Agreement for use with the PetVivo Holdings, Inc. 2020 Equity Incentive Plan (incorporated by reference to Exhibit 10.6 in the Company's Annual Report on Form 10-K for fiscal 2022 filed with the SEC on June 24, 2022).+](https://www.sec.gov/Archives/edgar/data/1512922/000149315222017738/ex10-5.htm)

10.8 [Form of Employee Restricted Stock Unit Award Agreement for use with PetVivo Holdings, Inc. 2020 Equity Incentive Plan (incorporated by reference to Exhibit 10.6 in the Company's Annual Report on Form 10-K for fiscal 2022 filed with the SEC on June 24, 2022).+](https://www.sec.gov/Archives/edgar/data/1512922/000149315222017738/ex10-6.htm)

10.9 [Form of Non-Employee Director Restricted Stock Unit Award Agreement for use with PetVivo Holdings, Inc. 2020 Equity Incentive Plan (incorporated by reference to Exhibit 10.8 in the Company's Annual Report on Form 10-K for fiscal 2022 filed with the SEC on June 24, 2022).+](https://www.sec.gov/Archives/edgar/data/1512922/000149315222017738/ex10-6.htm)

10.10 [Distribution Services Agreement made as of June 17, 2022 by and between MWI Veterinary Suppl Co, Inc. and PetVivo Holdings, Inc. (incorporated by reference to Exhibit 10.1 in the Company's Quarterly Report on 10-Q filed with the SEC on August 11, 2022).](https://www.sec.gov/Archives/edgar/data/1512922/000149315222022105/ex10-1.htm)

10.11 [Lease dated January 10, 2023 by and between PetVivo Holdings, Inc. and Dewey AL L.L.C. and Dewey MS L.L.C\*](ex10-11.htm)

---

| | |
|:---|:---|
| 10.12 | [Settlement and General Release Agreement effective September 1, 2020 between PetVivo Holdings, Inc. and its wholly-owned subsidiaries and David B. Masters (incorporated by reference to Exhibit 10.3 in the Company's Form 8-K filed with the SEC on September 17, 2020).](https://www.sec.gov/Archives/edgar/data/1512922/000149315220017976/ex10-3.htm) |
| 10.13 | [Consulting Agreement effective September 1, 2020 between PetVivo Holdings, Inc. and David B. Masters (incorporated by reference to Exhibit 10.4 in the Company's Form 8-K filed with the SEC on September 17, 2020). +](https://www.sec.gov/Archives/edgar/data/1512922/000149315220017976/ex10-4.htm) |
| 10.14 | [Note Conversion Agreement effective as of October 15, 2020 by and between PetVivo Holdings, Inc. and David B. Masters (incorporated by reference to Exhibit 10.1 in the Company's Form 8-K filed with the SEC on October 26, 2020).](https://www.sec.gov/Archives/edgar/data/1512922/000149315220019959/ex10-1.htm) |
| 10.15 | [Escrow Agreement effective as of December 16, 2019 by and between PetVivo Holdings, Inc., John Dolan and John Lai (incorporated by reference to Exhibit 10.13 in the Company's reference to Exhibit 10.3 in the Company's Form S-1/A (File No. 333-24942) filed with the SEC on December 31, 2020).+](https://www.sec.gov/Archives/edgar/data/1512922/000149315220024630/ex10-13.htm) |
| 21.1 | [List of Subsidiaries (incorporated by reference to Exhibit 21.1 in the Company's Annual Report on Form 10-K for fiscal 2022 filed with the SEC on June 24, 2022).](https://www.sec.gov/Archives/edgar/data/1512922/000149315222017738/ex21-1.htm) |
| 23.1 | [Consent of Stephano Slack LLC\*](ex23-1.htm) |
| 23.2 | [Consent of Assurance Dimensions, Inc.\*](ex23-2.htm) |
| 31.1 | [Certification of Principal Executive Officer Required By Rule 13a-14(A) of the Securities Exchange Act of 1934, As Amended, As Adopted Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002\*](ex31-1.htm) |
| 31.2 | [Certification of Principal Financial Officer Required By Rule 13a-14(A) of the Securities Exchange Act of 1934, As Amended, As Adopted Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002\*](ex31-2.htm) |
| 32.1 | [Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\*](ex32-1.htm) |
| 32.2 | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\*](ex32-2.htm) |
| 101.INS\* | Inline XBRL Instance Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Filed herewith

+ Indicates compensatory plan

**<u>ITEM 16. FORM 10-K SUMMARY</u>**

Not Applicable.

**<u>ITEM 17.</u>**

**SIGNATURES**

Pursuant to the requirements of the Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **PetVivo Holdings, Inc.,** <br> a Nevada corporation | **PetVivo Holdings, Inc.,** <br> a Nevada corporation |
| July 10, 2025 | By: | */s/ John Lai* |
|  |  | John Lai |
|  | Its: | CEO, President and Director<br> (Principal Executive Officer) |
| July 10, 2025 | By: | */s/ Garry Lowenthal* |
|  |  | Garry Lowenthal |
|  | Its: | Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| */s/ John Lai* | July 10, 2025 |
| John Lai |  |
| CEO, President, and Director |  |
| (Principal Executive Officer) |  |

---

---

| | | |
|:---|:---|:---|
| */s/ Garry Lowenthal* | | July 10, 2025 |
| Garry Lowenthal |  |  |
| Chief Financial Officer |  |  |

---

---

| | | |
|:---|:---|:---|
| */s/ Spencer Breithaupt* | | July 10, 2025 |
| Spencer Breithaupt |  |  |
| Director |  |  |

---

---

| | | |
|:---|:---|:---|
| */s/ Diane Levitan* | | July 10, 2025 |
| Diane Levitan |  |  |
| Director |  |  |

---

---

| | | |
|:---|:---|:---|
| */s/ Robert Costantino* | | July 10, 2025 |
| Robert Costantino |  |  |
| Director |  |  |

---

---

| | |
|:---|:---|
| */s/ Joseph Jasper* | July 10, 2025 |
| Joseph Jasper |  |
| Director |  |

---

---

| | |
|:---|:---|
| */s/ Robert Rudelius* | July 10, 2025 |
| Robert Rudelius |  |
| Director |  |

---

---

| | |
|:---|:---|
| */s/ Michael Eldred* | July 10, 2025 |
| Michael Eldred |  |
| Director |  |

---

**PETVIVO HOLDINGS, INC.**

**INDEX TO FINANCIAL STATEMENTS**

**Audited Financial Statements for the Years Ended March 31, 2025 and 2024**

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm – Stephano Slack LLC](#f_001) PCAOB ID 03523 | F-2 |
| [Report of Independent Registered Public Accounting Firm – Assurance Dimensions](#AS_001) PCAOB ID 05036 | F-3 |
| [Consolidated Balance Sheets, as of March 31, 2025 and 2024](#f_002) | F-4 |
| [Consolidated Statements of Operations for the Years Ended March 31, 2025 and 2024](#f_003) | F-5 |
| [Consolidated Statements of Changes in Stockholders' Equity for the Years Ended March 31, 2025 and 2024](#f_004) | F-6 |
| [Consolidated Statements of Cash Flows for the Years Ended March 31, 2025 and 2024](#f_005) | F-7 |
| [Notes to Consolidated Financial Statements](#f_006) | F-8 |

---

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and

Stockholders of PetVivo Holdings, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheet of Petvivo Holdings, Inc. and its Subsidiaries (the Company) as of March 31, 2025, and the related consolidated statements of operations, stockholders' equity, and cash flows for the year ended March 31, 2025, and the related consolidated notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2025 and the results of its operations and its cash flows for year ended March 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Substantial Doubt About its Ability to Continue as a Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 13 to the consolidated financial statements, the Company has experienced negative cash flows from operations for the year ended March 31, 2025, which raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 13. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Stephano Slack LLC (PCAOB ID # 003523)

We have served as the Company's auditor since 2025.

Wayne, Pennsylvania

July 10, 2025

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Petvivo Holdings, Inc.

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Petvivo Holdings, Inc. (the Company) as of March 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders' equity and cash flows for each of the years in the two year period ended March 31, 2024, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended March 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

**Explanatory Paragraph- Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 10 to the consolidated financial statements, the Company has suffered recurring losses. For the year ended March 31, 2024, the Company had a net loss of $10,955,295 and net cash used in operating activities of $7,419,588; and as of March 31, 2024 an accumulated deficit of $82,799,324. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 10. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

We did not identify any critical audit matters that need to be communicated.

---

| |
|:---|
| ![](rep_002.jpg) |
| We have served as the Company's auditor since 2019. |
| Margate, Florida |
| June 28, 2024 |

---

**ASSURANCE DIMENSIONS, LLC**

**also d/b/a McNAMARA and ASSOCIATES, LLC**

**TAMPA BAY**: 4920 W Cypress Street, Suite 102 \| Tampa, FL 33607 \| Office: 813.443.5048 \| Fax: 813.443.5053

**JACKSONVILLE**: 4720 Salisbury Road, Suite 223 \| Jacksonville, FL 32256 \| Office: 888.410.2323 \| Fax: 813.443.5053

**ORLANDO:** 1800 Pembrook Drive, Suite 300 \| Orlando, FL 32810 \| Office: 888.410.2323 \| Fax: 813.443.5053

**SOUTH FLORIDA**: 2000 Banks Road, Suite 218 \| Margate, FL 33063 \| Office: 754.800.3400 \| Fax: 813.443.5053

www.assurancedimensions.com

"Assurance Dimensions" is the brand name under which Assurance Dimensions, LLC including its subsidiary McNamara and Associates, LLC (referred together as "AD LLC") and AD Advisors, LLC ("AD Advisors"), provide professional services. AD LLC and AD Advisors practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. AD LLC is a licensed independent CPA firm that provides attest services to its clients, and AD Advisors provide tax and business consulting services to their clients. AD Advisors, and its subsidiary entities are not licensed CPA firms.

**PETVIVO HOLDINGS, INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
| Assets: |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $227689 | $87403 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for credit losses | 60573 | 18669 |
| &nbsp;&nbsp;&nbsp;Subscriptions receivable | 4400000 |  |
| &nbsp;&nbsp;&nbsp;Inventory (Note 3) | 323504 | 390076 |
| &nbsp;&nbsp;&nbsp;Investments | 150000 |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets (Note 4) | 447801 | 545512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 5609567 | 1041660 |
| Property and Equipment, net (Note 5) | 766874 | 821656 |
| Other Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use | 961539 | 1194348 |
| &nbsp;&nbsp;&nbsp;Patents and trademarks, net (Note 6) | 23725 | 30099 |
| &nbsp;&nbsp;&nbsp; Licensing Agreement, net (Note 7) | 1950000 |  |
| &nbsp;&nbsp;&nbsp;Security deposit | 27490 | 27490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Assets | 2962754 | 1251937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $9339195 | $3115253 |
| Liabilities and Stockholders' Equity: |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $821081 | $821230 |
| &nbsp;&nbsp;&nbsp;Accrued expenses (Note 8) | 948554 | 243030 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities – current portion | 163834 | 190589 |
| &nbsp;&nbsp;&nbsp;Notes payable and accrued interest-current portion (Note 9) | 312865 | 7244 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable and accrued interest, net of discount of $149,644 and $0 (Note 10) | 1622377 | 150277 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | 448089 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 4316800 | 1412370 |
| Other Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities (net of current portion) | 797705 | 1003759 |
| &nbsp;&nbsp;&nbsp;Notes payable and accrued interest (net of current portion) (Note 9) | 5442 | 13171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Liabilities | 803147 | 1016930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 5119947 | 2429300 |
| Commitments and Contingencies (see Note 12) |  |  |
| Stockholders' Equity: (Note 14) |  |  |
| Preferred stock, par value $0.001 per share, 20,000,000 shares authorized: |  |  |
| &nbsp;&nbsp;&nbsp;Series A Preferred stock: 3,045,000 and 0 shares issued and outstanding at March 31, 2025 and March 31, 2024 | 3045 |  |
| &nbsp;&nbsp;&nbsp;Series B Preferred stock: 5,000,000 and 0 shares issued and outstanding at March 31, 2025 and March 31, 2024 | 5000 |  |
| Common stock, par value $0.001 per share, 250,000,000 shares authorized, 24,181,537 and 17,058,620 shares issued and outstanding at March 31, 2025 and March 31, 2024, respectively | 24182 | 17059 |
| &nbsp;&nbsp;&nbsp;Additional Paid-In Capital | 95385511 | 83468218 |
| &nbsp;&nbsp;&nbsp;Accumulated Deficit | (91198490) | (82799324) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | 4219248 | 685953 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Stockholders' Equity | $9339195 | $3115253 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

 

 

**PETVIVO HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended March 31,** | **Year Ended March 31,** |
|  | **2025** | **2024** |
| **Revenues** | $1132533 | $968706 |
| **Cost of Sales** | 137677 | 101823 |
| &nbsp;&nbsp;&nbsp;**Gross Profit** | 994856 | 866883 |
| **Operating Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Sales and Marketing | 2644095 | 3399666 |
| &nbsp;&nbsp;&nbsp;Research and Development | 1583250 | 1395371 |
| &nbsp;&nbsp;&nbsp;General and Administrative | 4823230 | 6693186 |
| &nbsp;&nbsp;&nbsp;Total Operating Expenses | 9050575 | 11488223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating Loss | (8055720) | (10621340) |
| **Other Income (Expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Loss on Extinguishment of Debt |  | (534366) |
| &nbsp;&nbsp;&nbsp;Settlement Expense |  | (180000) |
| &nbsp;&nbsp;&nbsp;Gain on Extinguishment of debt | 66076 | 386874 |
| &nbsp;&nbsp;&nbsp;Unrealized Loss on Change in Derivative Liabilities | (106513) |  |
| &nbsp;&nbsp;&nbsp;Other Income | 56399 |  |
| &nbsp;&nbsp;&nbsp;Interest Expense | (359408) | (6463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Other Income (Expense)** | (343446) | (333955) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss before taxes** | (8399166) | (10955295) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Loss** | $(8399166) | $(10955295) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Loss Per Share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted | $(0.41) | $(0.78) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted Average number of Common Shares Outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted | 20491422 | 13969754 |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

**PETVIVO HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**For the Years Ended March 31, 2025 and 2024**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at March 31, 2024** | **17058620** | $**17059** | **-** | $**-** |  | **-** | $**83468218** | $**(82799324)** | $**685953** |
| Sale of Common stock | 3060588 | 3061 |  |  |  |  | 2047039 |  | 2050100 |
| Sale of Series A Preferred stock |  |  | 3045000 | $3045 | - | <br>- | 1214955 |  | 1218000 |
| Sale of Series B Preferred stock |  |  | - |  | 5000000 | $5000 | 4995000 |  | 5000000 |
| Conversion of debt and interest to common stock | 430798 | 431 |  |  |  |  | 301127 |  | 301558 |
| Common stock issued for services | 1120000 | 1120 |  |  |  |  | 573171 |  | 574291 |
| Common stock issued Licensing Agreement | 1000000 | 1000 |  |  |  |  | 999000 |  | 1000000 |
| Common stock issued for investment | 230770 | 231 |  |  |  |  | 149769 |  | 150000 |
| Cashless warrant exercise | 2316 | 2 |  |  | - | <br>- | (2) |  |  |
| Cancellation of stock awards | (25000) | (25) |  |  |  |  | (13725) |  | (13750) |
| Common stock in lieu of compensation | 725436 | 725 |  |  |  |  | 372525 |  | 373250 |
| Stock option buyout program | 150072 | 150 |  |  |  |  | 72658 |  | 72808 |
| Warrant derivative | - | - | - | - | - | - | 98684 |  | 98684 |
| Stock based compensation |  |  |  |  |  |  | 1107520 |  | 1107520 |
| Vesting of restricted stock units | 427937 | 428 |  |  | - |  | (428) |  |  |
| Net loss | - | - | - | - | - | - | - | (8399166) | (8399166) |
| **Balance at March 31, 2025** | **24181537** | $**24182** | **3045000** | $**3045** | $**5000000** | $**5000** | $**95385511** | $**(91198490)** | $**4219248** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Common<br> Stock to be**<br>**Issued** |<br>**Total** |
| **Balance at March 31, 2023** | **10950220** | $**10950** | $**72420604** | $**(71844029)** | $**137500** | $**725025** |
| Common stock sold | 4684048 | 4685 | 6660254 |  | (137500) | 6527439 |
| Stock issued for services | 890500 | 891 | 1489950 |  |  | 1490841 |
| Return of stock issued for services | (250000) | (250) | (537250) |  |  | (537500) |
| Conversion of debt and interest to common stock | 549340 | 549 | 700206 |  |  | 700755 |
| Value of stock and warrants on extinguishment of debt |  |  | 509310 |  |  | 509310 |
| Cashless warrant exercise | 34678 | 34 | (34) |  |  |  |
| Vesting of restricted stock units in lieu of compensation | 50500 | 51 | 115544 |  |  | 115595 |
| Vesting of restricted stock units | 149334 | 149 | (149) |  |  |  |
| Stock based compensation |  |  | 2109783 |  |  | 2109783 |
| Net loss | - | - | - | (10955295) | - | (10955295) |
| **Balance at March 31, 2024** | **17058620** | $**17059** | $**83468218** | $**(82799324)** | **-** | $**685953** |

---

*The accompanying notes are an integral part of these consolidated financial statements.*

**PETVIVO HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** |
|  | **March 31, 2025** | **March 31, 2024** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Net Loss | $(8399166) | $(10955295) |
| &nbsp;&nbsp;&nbsp;Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1107520 | 2109783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 174590 | 126850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of Right-of-Use Asset | 178623 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on change in fair value of derivatives | 290616 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 106513 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consulting and investor relations services paid in stock | 574291 | 857653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued in lieu of compensation | 373250 | 115595 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cancellation of stock award | (13750) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for stock option buyout program | 72808 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 534366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest in convertible notes |  | 5699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on Extinguishment of debt | (66075) | (385874) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of lease vehicles | 1018 |  |
| &nbsp;&nbsp;&nbsp;Changes in Operating Assets and Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in prepaid expenses and other assets | 97710 | 41870 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable | (41904) | 68020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in inventory | 66572 | (19793) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts payable and accrued expenses | 271450 | 81538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (179641) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest in notes payable | 63622 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Used In Operating Activities | (5321953) | (7419588) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (63434) | (309104) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of Licensing Agreement | (500000) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Used in Investing Activities | (563434) | (309104) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of common stock and warrants | 2050100 | 6527439 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of preferred stock | 1818000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible notes | 1865000 | 670000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of note payable | 300000 | 150000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of notes payable | (7427) | (6658) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Provided by Financing Activities | 6025673 | 7340781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in Cash | 140286 | (387911) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash at Beginning of the Year | 87403 | 475314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash at End of the Year | $227689 | $87403 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash Paid During The Year For: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $8360 | $1573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUPPLEMENTAL DISCLOSURE ON NON-CASH FINANCING AND INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Common stock issued on conversion of convertible notes and accrued interest | $301558 | $700755 |
| &nbsp;&nbsp;&nbsp;Prepaid stock granted for investor relations services | $- | $216978 |
| &nbsp;&nbsp;&nbsp;(Decrease) increase to operating lease right of use asset and operating lease liabilities | $(53168) | $876367 |
| &nbsp;&nbsp;&nbsp;Vesting of restricted stock units | $428 | $- |
| &nbsp;&nbsp;&nbsp;Stock issued for investment | $150000 | $- |
| &nbsp;&nbsp;&nbsp;Stock issued for licensing agreement | $1000000 | $- |
| &nbsp;&nbsp;&nbsp;Accrued expense for licensing agreement | $500000 | $- |
| &nbsp;&nbsp;&nbsp;Warrants issued as debt discount | $98684 | $- |
| &nbsp;&nbsp;&nbsp;Derivative liabilities as debt discount | $341576 | $- |
| &nbsp;&nbsp;&nbsp;Preferred stock subscription | $4400000 | $- |

---

 

*The accompanying notes are an integral part of these consolidated financial statements.*

**PetVivo Holdings, Inc.**

**Notes to Consolidated Financial Statements**

**March 31, 2025 and 2024**

**<u>NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION</u>**

***(A) Organization and Description***

PetVivo Holdings, Inc. was incorporated in Nevada under a former name in 2009 and entered its current business in 2014 through a stock exchange reverse merger with PetVivo, Inc., a Minnesota corporation. This merger resulted in PetVivo, Inc. becoming a wholly-owned subsidiary of PetVivo Holdings, Inc. In April 2017, PetVivo Holdings, Inc. acquired another Minnesota corporation, Gel-Del Technologies, Inc. through a statutory merger, which is also a wholly-owned subsidiary of PetVivo Holdings, Inc. In April 2025, PetVivo Holdings, Inc. changed the name of its wholly-owned subsidiary PetVivo, Inc. to PetVivo Animal Health, Inc. to better reflect the industry in which PetVivo Holdings, Inc. sell our products.

The Company is in the business of licensing and commercializing our proprietary medical devices and biomaterials for the treatment and/or management of afflictions and diseases in animals, initially for dogs and horses. The Company began commercialization of its lead product Spryng® with OsteoCushion® Technology, a veterinarian-administered, intraarticular injection for the management of lameness and other joint afflictions such as osteoarthritis in dogs and horses in September 2021. The Company has a pipeline of additional products for the treatment of animals in various stages of development. A portfolio of nineteen patents protects the Company's biomaterials, products, production processes and methods of use. In February 2025, The Company signed an exclusive licensing agreement with VetStem, Inc. to market and sell their Precise PRP (Platelet-Rich Plasma) product for both canine and equine. Revenues are expected in fiscal year 2026. The Company's operations are conducted from its headquarter facilities in suburban Minneapolis, Minnesota.

***(B) Basis of Presentation***

The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC").

***(C) Principles of Consolidation***

The accompanying consolidated financial statements include all the accounts of the PetVivo Holdings Inc., and and its two wholly-owned Minnesota corporations, Gel-Del Technologies, Inc. and PetVivo Animal Health, Inc. (collectively, the "Company"). All intercompany transactions have been eliminated upon consolidation.

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act, enacted on April 5, 2021 and has elected to comply with certain reduced public company reporting requirements.

***(D) Use of Estimates***

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include allowance for credit losses, inventory obsolescence, estimated useful 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.

***(E) Cash and Cash Equivalents***

 ****

The Company considers all highly-liquid, temporary cash investments with original maturity of three months or less to be cash equivalents. The Company had no cash equivalents at March 31, 2025 and 2024.

 ****

***(F) Concentration Risk***

The Company maintains its cash with various financial institutions, which at times may exceed federally insured limits. At March 31, 2025 and 2024, the Company did not have cash balances in excess of the federally insured limits.

 ****

***(G) Accounts Receivable***

Accounts receivable is carried at their contractual amounts, less an estimated allowance for credit losses. Management estimates the allowance for credit losses using a loss-rate approach based on historical loss information, adjusted for management's expectations about current and future economic conditions, as the basis to determine expected credit losses. Management exercises significant judgment in determining expected credit losses. Key inputs include macroeconomic factors, industry trends, the creditworthiness of counterparties, historical experience, the financial conditions of the customers, and the amount and age of past due accounts. Management believes that the composition of receivables at year-end is consistent with historical conditions as credit terms and practices and the client base has not changed significantly. Receivables are considered past due if full payment is not received by the contractual due date. Past due accounts are generally written off against the allowance for credit losses only after all collection attempts have been exhausted. As of March 31, 2025 and 2024, the Company had not recorded an allowance for credit losses, as management determined that no reserve was necessary based on its assessment of the collectability of outstanding balances and the credit quality of its customers.

***(H) Inventory***

Inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method. Inventory consists primarily of finished goods.

The Company evaluates inventory for excess, and obsolescence based on factors such as current inventory levels, estimated product life cycles, historical and forecasted customer demand, and input from the product development team. When necessary, a reserve is recorded to reduce the carrying value of inventory to its estimated net realizable value. These estimates and assumptions are reviewed at least annually and updated as needed based on the Company's business plans and market conditions. As of March 31, 2025 and 2024, the Company determined that no inventory reserve was required.

***(I) Property & Equipment***

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized. Maintenance and repairs are charged to operations as incurred. Depreciation is computed by the straight-line method (after considering their respective estimated residual values) over the assets estimated useful life of 3 to 5 years for production and computer equipment and furniture and 5 to 7 years for leasehold improvements.

***(J) Patents and Trademarks***

The Company capitalizes direct costs for the maintenance and advancement of their patents and trademarks and amortizes these costs over the lesser of the useful life of 60 months or the life of the patent. We evaluate the recoverability of intangible assets periodically by considering events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired.

***(K) Loss Per Share***

The Company follows Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 260 when reporting Loss Per Share resulting in the presentation of basic and diluted loss per share. Because the Company reported a net loss for each of the years ended March 31, 2025 and 2024, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same.

***(L) Revenue Recognition***

The Company recognizes revenue in accordance with FASB ASC 606 "Revenue from Contracts with Customers."

The Company derives revenue from the sale of its pet care products directly to its veterinarian customers in the United States. The Company recognizes revenue when performance obligations under the terms of a contract with the veterinarian customer are satisfied. Product sales occur once control or title is transferred based on the commercial terms. Revenue is recognized upon delivery to the customer, which is when control of these products is transferred and in an amount that reflects the consideration the Company expects to receive for these products. Shipping costs charged to customers are reported as an offset to the respective shipping costs. The Company does not have any significant financing components as payment is received at or shortly after the point of sale.

The Company entered into a Distribution Services Agreement (the "Agreement") with MWI Veterinary Supply Co. (the "Distributor") on June 17, 2022. Contracts with the Distributor 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 5% of gross monthly sales payable in 45 days; the distribution fee is netted against revenue. The Agreement provides for a rebate payable to the Distributor based on annual sales volume 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:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br> **2025** | **March 31, 2024** |
| Accounts receivable | $- | $18669 |
| Rebate liability | 57264 | 57264 |
| Distribution fee payable | 2299 | 7583 |

---

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 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.

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 and $0, respectively. This represents 26% and 0% of total revenues for the years ended March 31, 2025 and 2024, respectively. Accounts receivable from Vedco was $53,904 and $0 at March 31, 2025 and 2024.

For the years ended March 31, 2025 and 2024, the Company recognized revenue from product sales to Clipper of $194,504 and $0, respectively. This represents 17% and 0% of total revenues for the years ended March 31, 2025 and 2024, respectively. There were no accounts receivable from Clipper at March 31, 2025 and 2024.

***(M) Research and Development***

The Company expenses research and development costs as incurred.

***(N) Fair Value of Financial Instruments***

FASB ASC 820, *Fair Value Measurements and Disclosure*s ("ASC 820") establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

● Level 1 - quoted market prices in active markets for identical assets or liabilities.

● Level 2 - inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

● Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amounts of the Company's financial instruments, such as cash, accounts receivable, accounts payable and other liabilities. approximates their fair value as of March 31, 2025, and March 31, 2024, due to the short-term nature of these items.

The fair value of the Company's debt approximates its carrying value as of March 31, 2025 and 2024. Factors that the Company considered when estimating the fair value of its debt included market conditions, liquidity levels in the private placement market, variability in pricing from multiple lenders and terms of debt.

***(O) Stock-Based Compensation***

The Company accounts for stock-based compensation under the provisions of FASB ASC 718, *Compensation—Stock Compensation,* which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. In accordance with ASU No. 2018-07, *Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting* share-based payment transactions for acquiring goods and services from nonemployees are included. Consistent with the accounting requirement for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied.

 ****

***(P) Income Taxes***

The Company accounts for income taxes under FASB ASC 740. Deferred tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. As required by FASB ASC 450, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.

The Company is not currently under examination by any federal or state jurisdiction.

The Company's policy is to record tax-related interest and penalties as a component of operating expenses.

***(Q) Recently Issued Accounting Pronouncements***

In June 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, as modified by FASB ASU No. 2019-10 and other subsequently issued related ASUs. The amendments in this Update affect loans, debt securities, trade receivables, and any other financial assets that have the contractual right to receive cash. The ASU requires an entity to recognize expected credit losses rather than losses incurred for financial assets. The amendments in this Update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted this new guidance effective January 1, 2023 utilizing the modified retrospective transition method. The adoption of this standard did not have a material impact on the Company's consolidated financial statements, but did change how the allowance for credit losses is determined.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose significant segment expenses and other segment items on an interim and annual basis and provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative threshold to determine its reportable segments. The new disclosure requirements are also applicable to entities that account and report as a single operating segment entity. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The Company adopted the guidance for the annual reporting period ended March 31, 2025. There was no impact on the Company's reportable segments identified.

**<u>NOTE 2 – RECLASSIFICATION OF PRIOR YEAR PRESENTATION</u>**

*Reclassification.* Certain prior period amounts have been reclassified to conform to current period presentation.

Certain prior year research and development costs have been reclassified from costs of sales to research and development operating expense for consistency with the current year presentation in the Consolidated Statements of Operations. There were no reclassifications made to the Consolidated Balance Sheets, Consolidated Statements of Changes in Stockholders' Equity or Consolidated Statements of Cash Flows.

**<u>NOTE 3 – INVENTORY</u>**

Inventory consists of the following at March 31, 2025 and March 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Finished goods | $21782 | $35442 |
| Work in process | 41540 | 20289 |
| Raw materials | 260182 | 334345 |
| &nbsp;&nbsp;&nbsp;Total | $323504 | $390076 |

---

**<u>NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS</u>**

Prepaid expenses and other current assets consists of the following at March 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Supplier advance | 195000 |  |
| Insurance | 128000 | 138000 |
| Investor relations services | 47000 | 217000 |
| Rent | 26000 | 25000 |
| Software subscription fees | 24000 | 20000 |
| Nasdaq and FINRA fees | 20000 | 67000 |
| Trade shows | 4000 | 44000 |
| Consulting |  | 26000 |
| Other | 3801 | 8512 |
| &nbsp;&nbsp;&nbsp;Total | $447801 | $545512 |

---

**<u>NOTE 5–PROPERTY AND EQUIPMENT, NET</u>**

Property and equipment consists of the following at March 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Leasehold improvements | $424041 | $418041 |
| Production equipment | 708150 | 661204 |
| R&D equipment | 25184 | 25184 |
| Computer equipment and furniture | 155305 | 144817 |
| &nbsp;&nbsp;&nbsp;Total, at cost | 1312680 | 1249246 |
| Accumulated depreciation | (545806) | (427590) |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | $766874 | $821656 |

---

For the years ended March 31, 2025 and 2024, depreciation expense was $118,216 and $118,300, respectively.

**<u>NOTE 6 – PATENTS AND TRADEMARKS, NET</u>**

The components of patents and trademarks, all of which are finite-lived, were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
| Patents | $3870057 | $3870057 |
| Trademarks | 26142 | 26142 |
| &nbsp;&nbsp;&nbsp;Total at cost | 3896199 | 3896199 |
| Accumulated Amortization | (3872474) | (3866100) |
| &nbsp;&nbsp;&nbsp;Patents and trademarks, net | $23725 | $30099 |

---

For the years ended March 31, 2025 and 2024, amortization expenses was $6,374 and $8,550, respectively. The annual amortization expense will be $6,374 for each of the next three years, from 2026 through 2028, and $4,603 in 2029, whereby the net intangible assets will be fully amortized.

**<u>NOTE 7 – LICENSING AGREEMENTS</u>**

The components of licensing agreements, all of which are finite-lived, were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
| License Agreement | $2000000 | $- |
| Accumulated Amortization | (50000) | - |
| &nbsp;&nbsp;&nbsp;Total net | $1950000 | $- |

---

In February 2025, the Company signed an exclusive licensing agreement with VetStem, Inc. to market and sell their Precise PRP (Platelet-Rich Plasma) for both canine and equine products. The exclusive licensing agreement is a **5** five-year agreement whereby the Company paid an initial licensing fee of $2,000,000, which was paid in a combination of $500,000 cash, $1,000,000 in stock issuances and $500,000 in future contract payments, which is included in accrued expenses as of March 31, 2025. The licensing fee will be amortized over sixty (60) months, the term of the agreement. The licensing agreement also has a nominal royalty fee payment between 3% to 4.5%, commencing in the seventh month of the licensing agreement. The royalty fee expense for the years ended March 31, 2025 and 2024 were $0 and $0, respectively. We also issued 250,000 warrants, with a strike price of $1.25 per share for a term of three years. The total warrant expense is valued at $46,030 to be amortized over thirty-six months.

For the years ended March 31, 2025 and 2024, amortization expenses was $50,000 and $0, respectively.

**<u>NOTE 8 – ACCRUED EXPENSES</u>**

The components of accrued expenses were as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2024** |
| Contract payable | $500000 | $- |
| Accrued payroll and related taxes | 284312 | 111353 |
| Accrued expenses | 164242 | 131677 |
| &nbsp;&nbsp;&nbsp;Total | $948554 | $243030 |

---

Pursuant to a lease on our manufacturing facility, the Company had recorded $332,238 as a payable to the lessor. As of March 31, 2024, the Company determined that this payable along with other vendor payables of $53,636, totaling $385,874 was included in accounts payable had exceeded the statute of limitations for payments, despite the Company's best efforts to pay, and was unable to do so. As of March 31, 2025, the Company determined that $66,075 of accounts payable had exceeded the statute of limitations for payments for the period ending March 31, 2025. As a result, following legal advice, a total of $66,075 and $385,874 of these payables were extinguished from the Company's balance sheets at March 31, 2025 and 2024, respectively and the gain on extinguishment of debt was included in other income on the Consolidated Statement of Operations.

**<u>NOTE 9 – NOTES PAYABLE AND ACCRUED INTEREST</u>**

In January 2020, the Company entered into a lease amendment for our corporate office facility whereby the lease term was extended through November of 2026 in exchange for a loan of $42,500. The note payable accrues interest at a rate of 6% per annum. As of March 31, 2025 and 2024, the amount outstanding on the note was $13,244 and $20,528, respectively. As of March 31, 2025, the Company classified $7,802 as a current liability and $5,442 in other liabilities. As of March 31, 2024, the Company classified $7,356 as a current liability and $13,171 in other liabilities.

On December 20, 2024, the Company entered into a promissory note for $100,000. The note accrued interest at a rate of 12% per annum. The entire unpaid principal balance, together with interest, shall be due and payable in full on or before the 20th day of June 2025, with an amended maturity date of December 31, 2025. On March 3, 2025, the Company entered into another promissory note for an additional $200,000 with the same terms. The entire unpaid principal balance, together with interest, shall be due and payable in full on or before the 3rd day of September 3, 2025.

The total non-convertible notes payables, including accrued interest, for these three notes for the year ended March 31, 2025 totals $318,307 consisting of $312,865 current portion with the long-term portion in other liabilities of $5,442, and for the year ended March 31, 2024 totals $20,415 consisting of $7,244 current portion with the long-term portion in other liabilities of $13,171.

These note payments for the next five years are as follows: 2026 through 2030 is $312,865, $5,442, $0, $0 and $0 respectively. None of the promissory notes listed above have any collateral attached to them.

Interest expense for the years ended March 31, 2025 and 2024 was $6,138 and $1,573, respectively.

**<u>NOTE 10 – CONVERTIBLE NOTES PAYABLE AND ACCRUED INTEREST</u>**

In October 2023 and amended in November 2023, the Company entered into a promissory note for $120,000. The note accrued interest at a rate of 10% per annum. The principal and accrued interest were due in February 2024. The holder of the note had the option to convert the principal and accrued interest into shares of the Company's common stock at a conversion rate of $0.75 per share. On February 5, 2024, the note and accrued interest totaling $123,255 was converted into 164,340 shares of common stock.

On March 8, 2024, the Company entered into a convertible promissory note for $150,000. The note accrued interest at a rate of 10% per annum. The principal and accrued interest were due in April 2024. The holder of the note had the option to convert the principal and accrued interest into shares of the Company's common stock at a conversion rate of $0.70 per share. On April 10, 2024, the company entered into another promissory note for an additional $150,000 whereby the new principal balance was $300,000 with the same terms. On April 29, 2024, the noteholder converted the $300,000 principal balance, along with $1,558 of accrued interest into 430,798 common shares and 430,798 warrants to purchase shares with a strike price of $1.50 per share expiring in three years.

On September 9, 2024, the Company entered into a convertible promissory note for $150,000. The note accrued interest at a rate of 10% per annum. The original maturity date was November 9, 2024, whereby an amendment extended the maturity date to December 31, 2025. The holder of the note has the option to convert the principal and accrued interest at a conversion price of the lesser of i) the per Share price at which the Company sells Shares of the Company Common Stock in a Qualified Financing occurring on or before the Maturity Date of this Note, or ii) Fifty Cents ($0.50) per Share ("Conversion Price"); each Share consists of one (1) share of PetVivo Holdings, Inc. restricted common stock ("Common Stock"). On September 27, 2024, the Company entered into another promissory note for an additional $350,000 with the same terms. The original maturity date for this $350,000 note was November 24, 2024, whereby an amendment extended the maturity date to December 31, 2025. From October 10, 2024, through December 30, 2024, the Company entered into additional promissory notes totaling $650,000 with the same terms. These notes maturity dates were all amended with the amended maturity date of December 31, 2025. From February 12, 2025, through March 13, 2025, the Company entered into additional promissory notes totaling $540,000 with the same terms. These notes maturity dates were all amended with the amended maturity date of December 31, 2025.

On December 20, 2024, the Company entered into a convertible promissory note for $25,000. The note accrued interest at a rate of 12% per annum. The holder of the note has the option to convert the principal and accrued interest at a conversion price of the greater of i) the per Share price at which the Company sells Shares of the Company Common Stock in a Qualified Financing occurring on or before the Maturity Date of this Note, or ii) Fifty Cents ($0.50) per Share ("Conversion Price"); each Share consists of one (1) share of PetVivo Holdings, Inc. restricted common stock ("Common Stock"). The original maturity date was June 30, 2025, whereby an amendment extended the maturity date to December 31, 2025.

The total convertible notes payables (all current liability), including accrued interest, for these convertible notes for the year ended March 31, 2025 is $1,772,021, and for the year ended March 31, 2024 is 150,277.

Interest expense for the years ended March 31, 2025 and 2024 was $57,021 and $277, respectively.

**Derivative Liabilities – Variable Conversion Features**

The Company evaluated the terms of its convertible notes and determined that certain embedded conversion features were not indexed to the Company's own stock due to variable pricing provisions. As a result, the embedded conversion features were bifurcated and accounted for as derivative liabilities under ASC 815.

For each note with a derivative liability, the fair value of the derivative at inception was recorded as a discount to the carrying value of the note and is being amortized to interest expense over the term of the note using the effective interest method. The fair values of the derivative liabilities at inception dates of the notes and at March 31, 2025 were estimated using a binomial option pricing model with the following key inputs: closing stock price at Note inception dates and at March 31, 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 and 81.2% - 115.6% at March 31, 2025, risk-free rate rates between 4.14% - 5.18% at inception dates of notes and 4.08% at March 31, 2025, and dividend yield of zero. The fair value of the derivative liabilities at inception and March 31, 2025 was $341,576 and $448,089. The Company recognized an unrealized loss on the change in fair value of derivative liabilities of $106,513 and $0 for the years ended March 31, 2025 and 2024, respectively, . Interest expense related to the amortization of the debt discounts associated with derivative liabilities was $285,563 and $0 for the years ended March 31, 2025 and 2024, respectively.

**Convertible Notes Issued with Warrants**

On February 14, 2025, a total of 250,000 warrants were issued for two Notes totaling $500,000. The warrants have a three year term with an exercise strike price of $0.90 per share. The warrants were evaluated under ASC 480 and ASC 815 and were determined to be equity-classified instruments. The fair value of the warrants at inception was recorded as a discount to the carrying value of the associated notes and is being amortized to interest expense over the term of the notes using the effective interest method. The fair value at issuance was estimated using the binomial option pricing model with the following inputs: closing stock price of $0.74, strike price of $0.90, 3 year term , volatility rate of 113.7%, risk-free rate of 4.26%, and dividend yield of zero. The fair value of the warrants at inception was $98,684. Interest expense related to the amortization of the debt discounts associated with warrants was $5,053 and $0 for the years ended March 31, 2025 and 2024, respectively.

**Fair Value Allocation of Proceeds from Convertible Notes**

When convertible notes are issued with warrants, and no derivative liability is present, the proceeds are allocated between the debt and the warrants based on their relative fair values at issuance. When convertible notes are issued with both detachable warrants and embedded derivative liabilities, the proceeds are allocated using a sequential approach: first to the derivative liability at fair value, then to the warrants at fair value, and the residual amount to the debt host. For convertible notes that include only an embedded derivative liability and no warrants, the proceeds are allocated first to the derivative liability at fair value, with the residual amount allocated to the debt host.

**<u>NOTE 11 – RETIREMENT PLAN</u>**

In February 2021, the Company established a 401(k) retirement plan for its employees in which eligible employees can contribute a percentage of their compensation. The Company may also make discretionary contributions. For the years ended March 31, 2025 and 2024, the Company made contributions to the plan of $58,575 and $51,441, respectively.

**<u>NOTE 12 – COMMITMENTS AND CONTINGENCIES</u>**

The Company accounts for contingencies in accordance with ASC 450, Contingencies. A liability is recorded when it is probable that a loss has been incurred and the amount can be reasonably estimated. If a loss is reasonably possible but not probable, or if the amount cannot be estimated, the nature of the contingency and an estimate of the possible loss, if determinable, is disclosed. Remote contingencies are generally not disclosed unless related to guarantees.

**Lease Obligations**

We lease property and equipment under operating leases, typically with terms greater than 12 months, and determine if an arrangement contains a lease at inception. In general, an arrangement contains a lease if there is an identified asset and we have the right to direct the use of and obtain substantially all of the economic benefit from the use of the identified asset. We record an operating lease liability at the present value of lease payments over the lease term on the commencement date. The related right of use (''ROU") operating lease asset reflects rental escalation clauses, as well as renewal options and/or termination options. The exercise of lease renewal and/or termination options is at our discretion and is included in the determination of the lease term and lease payment obligations when it is deemed reasonably certain that the option will be exercised. When available, we use the rate implicit in the lease to discount lease payments to present value; however, certain leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement.

We classify our leases as buildings, vehicles or computer and office equipment and do not separate lease and non-lease components of contracts for any of the aforementioned classifications. In accordance with applicable guidance, we do not record leases with terms that are less than one year on the Consolidated Balance Sheets.

None of our lease agreements contain material restrictive covenants or residual value guarantees.

**Buildings** 

The Company entered into an eighty-four month lease for 3,577 square feet of newly constructed office, laboratory, and warehouse space located in Edina, Minnesota in May 2017. The base rent has annual increases of 2% and the Company is responsible for its proportional share of common space expenses, property taxes, and building insurance. This lease is terminable by the landlord if damage causes the property to no longer be utilized as an integrated whole and by the Company if damage causes the facility to be unusable for a period of 45 days. In January 2020, the Company entered into a lease amendment to extend the lease term through November of 2026 in exchange for receipt of a loan of $42,500 recorded to note payable. The monthly base rent as of March 31, 2025, and 2024 was $2,386 and $2,340, respectively.

The Company entered into a sixty-three month lease for 2,400 square feet of office space located in Edina, Minnesota in January 2022. This lease will expire in March 2027. The base rent has annual increases of 2.5% and the Company is responsible for its proportional share of common space expenses, property taxes, and building insurance. The monthly base rent as of March 31, 2025 and 2024 was $2,879 and $2,808, respectively.

On January 10, 2023, the Company entered into a new lease agreement for approximately 14,000 square feet of production and warehouse space with a commencement date of April 1, 2023, which is when the control and right of use for this asset took place. The initial monthly base rent is $8,420 and has annual increases of 2.5%. The Company is also responsible for its proportional share of common space expenses, property taxes, and building insurance. The lease will terminate on June 30, 2033, and the Company has a renewal option for a period of five years. The monthly base rent as of March 31, 2025 and 2024 was $8,631 and $8,420, respectively.

**Vehicles**

The Company leased vehicles for certain members of its field sales organization during the years ended March 31, 2025 and 2024, under a vehicle fleet program whereby the noncancelable lease was for a term of 48 months. During the year ended March 31, 2025, all of the leased vehicles under the vehicle fleet program were sold and the Company recognized a loss of $1,018 on the sale of the leased vehicles, reported in other income (expense). As a result of the sale, right-of-use assets were reduced by $53,168 and lease liability was reduced by $53,168. As of March 31, 2024, in addition to monthly rental fees specific to the vehicles, there are fixed monthly non-lease components that have been included in the ROU operating lease assets and operating lease liabilities. The non-lease components are not significant.

Operating lease expense for the years ended March 31, 2025, and 2024, was $167,339 and $145,004, respectively.

The following is a maturity analysis of the approximate annual undiscounted cash flows of the operating lease liabilities as of March 31, 2025:

---

| | |
|:---|:---|
| 2026 | $169000 |
| 2027 | 164000 |
| 2028 | 112000 |
| 2029 | 114000 |
| 2030 | 117000 |
| Thereafter | 402000 |
| Total | 1078000 |
| Less: amount representing interest | (116000) |
| Total | $962000 |

---

During the year ended March 31, 2024, in compliance with ASC 842, the Company recognized, based on the extended lease terms to November 2026, March 2027, and June 2033, and treasury rates of 0.40%, 7.6% and 4.39%, respectively, operating lease right-of-use assets of approximately $962,000 and a corresponding operating lease liabilities. As of March 31, 2025, the present value of future base rent lease payments based on the weighted average remaining lease terms of 4.2 years and weighted average discount rate of approximately 3.94%, is as follows:

---

| | |
|:---|:---|
| Present value of future base rent lease payments | $961539 |
| Base rent payments included in prepaid expenses | - |
| Present value of future base rent lease payments – net | $961539 |

---

As of March 31, 2025 and 2024, the present value of future base rent lease payments – net is classified between current and non-current assets and liabilities as follows:

SCHEDULE OF LEASE CURRENT AND NON-CURRENT ASSETS AND LIABILITIES

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Operating lease right-of-use asset | $961539 | $1194348 |
| Total operating lease assets | 961539 | 1194348 |
| Operating lease current liability | 163834 | 190589 |
| Operating lease non-current liability | 797705 | 1003759 |
| Total operating lease liabilities | $961539 | $1194348 |

---

**Employment Agreements**

The Company has employment agreements with its executive officers. As of March 31, 2025, these agreements contain severance benefits ranging from one month to six months if terminated without cause.

**Legal Proceedings**

From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. As of March 31, 2025, there were no pending or threatened legal actions that, in management's opinion, are expected to have a material adverse effect on the Company's financial position, results of operations, or cash flows.

**<u>NOTE 13 - GOING CONCERN</u>**

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern.

The Company incurred net losses of $8,399,166 for the year ended March 31, 2025, had net cash used in operating activities of $4,521,930 and has an accumulated deficit of $91,198,490 on March 31, 2025. These conditions raise substantial doubt about the Company's ability to continue as a going concern for a period of at least twelve months after the date of issuance of these financial statements. In view of these matters, the Company's ability to continue as a going concern is dependent upon the Company's ability to achieve a level of profitability and/or to obtain adequate financing through the issuance of debt or equity in order to finance its operations.

Management believes that the actions presently being taken to further implement its business plan will enable the Company to continue as a going concern. While the Company believes in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and raise additional funds. An investor subscribed to a $5 million Series B Preferred stock offering whereby $600,000 has been received by March 31, 2025. The remaining $4.4 million was received in May and June 2025.

These consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

**<u>NOTE 14 – STOCKHOLDERS' EQUITY</u>**

**Equity Incentive Plan**

On July 10, 2020, our Board of Directors unanimously approved the PetVivo Holdings, Inc "2020 Equity Incentive Plan" (the "2020 Plan"), which authorized the issuance of up to 1,000,000 shares of our common stock as awards under the 2020 Plan, subject to approval by our stockholders at the Annual Meeting of Stockholders held on September 22, 2020, when it was approved by our stockholders and became effective. On October 14, 2022, the stockholders of the Company approved the PetVivo Holdings, Inc. Amended and Restated 2020 Equity Incentive Plan (the "Amended Plan"), which increased the number of shares of the Company's common stock which may be granted under the Amended Plan from 1,000,000 to 3,000,000. Unless sooner terminated by the Board, the Amended Plan will terminate at midnight on July 10, 2030. The number of shares available to grant under the Amended Plan was 822,605 at March 31, 2025.

Employees, consultants, and advisors of the Company, and non-employee directors of the Company will be eligible to receive awards under the Amended Plan. In the case of consultants and advisors, however, their services cannot be in connection with the offer and sale of securities in a capital-raising transaction nor directly or indirectly to promote or maintain a market for PetVivo common stock.

The Amended Plan is administered by the Compensation Committee of our Board of Directors (the "Committee"), which has full power and authority to determine when and to whom awards will be granted, and the type, amount, form of payment, any deferral payment, and other terms and conditions of each award. Subject to provisions of the Amended Plan, the Committee may amend or waive the terms and conditions, or accelerate the exercisability, of an outstanding award. The Committee also has the authority to interpret and establish rules and regulations for the administration of the Amended Plan. In addition, the Board of Directors may also exercise the powers of the Committee.

The aggregate number of shares of PetVivo common stock available and reserved to be issued under the Amended Plan is 3,000,000 shares, but includes the following limits:

● the maximum aggregate number of shares of Common Stock granted as an Award to any Non-Employee Director in any one Plan Year will be 10,000 shares; provided that such limit will not apply to any election of a Non-Employee Director to receive shares of Common Stock in lieu of all or a portion of any annual Board, committee chair or other retainer, or any meeting fees otherwise payable in cash.

Awards can be granted for no cash consideration or for any cash and other consideration as determined by the Committee. Awards may provide that upon the grant or exercise thereof, the holder will receive cash, shares of PetVivo common stock, other securities or property, or any combination of these in a single payment, installments or on a deferred basis. The exercise price per share of any stock option and the grant price of any stock appreciation right may not be less than the fair market value of PetVivo common stock on the date of the grant. The term of any award cannot be longer than ten years from the date of the grant. Awards will be adjusted in the event of a stock dividend or other distribution, recapitalization, forward or reverse stock split, reorganization, merger or other business combination, or similar corporate transaction, in order to prevent dilution or enlargement of the benefits or potential benefits provided under the Amended Plan.

The Amended Plan permits the following types of awards: stock options, stock appreciation rights, restricted stock awards, restricted stock units, deferred stock units, performance awards, non-employee director awards, other stock-based awards, and dividend equivalents.

**Convertible Notes**

On July 27, 2023, the Company issued convertible promissory notes ("Convertible Debentures") in the aggregate amount of $550,000 to three accredited investors pursuant to debenture subscription agreements ("Debenture Subscription Agreement"). The Convertible Debentures mature on January 26, 2024 (the "Maturity Date"), bear interest at a rate of 10% per annum and automatically convert into shares of the Company's common stock on the earlier of (i) the Maturity Date or (ii) upon the occurrence of certain events prior to the Maturity Date, including, without limitation, the sale of common stock of at least $2 million.

On August 11, 2023, the Company entered into Convertible Debenture Conversion Agreements ("Conversion Agreements") with the three debenture holders ("Debenture Holders"). Pursuant to the Conversion Agreements, each Debenture Holder agreed to voluntarily and immediately convert the outstanding balance on their Convertible Debenture into shares of the Company's common stock prior to January 26, 2024, the maturity date of the Convertible Debentures, provided that the Company adjust the original conversion rate to one share of the Company's common stock for each $1.50 of principal (reduced from $1.60 in the Convertible Debenture) and pay an amount equal to six months of interest (the "New Conversion Rate") and grant warrants to the Debenture Holders providing each Debenture Holder with the right to purchase the number of shares of the Company's common stock issued to the Debenture Holder in the conversion. The Debenture Holders converted $550,000 in Convertible Debentures and accrued interest of $27,500 into 385,000 shares of the Company's common stock and warrants ("Warrants") to purchase an aggregate of 385,000 shares of the Company's common stock. The Warrants are exercisable any time on or after February 5, 2024 and prior to August 10, 2026 at an exercise price of $2.00 per share.

As a result of the inducement to the Debenture Holders to voluntarily convert the outstanding balance of their Convertible Debentures prior to their maturity date, the Company recognized a loss on extinguishment of debt of $534,366. The loss is comprised of the fair value of the warrants issued of $463,476, as determined by the Black Scholes model; the value of additional shares issued of $45,834 as a result of the lower conversion rate to one share of the Company's common stock issued and the additional interest of $25,056 which is the amount of interest credited to the Debenture Holders over the actual interest earned of $2,444. The value of the warrants and additional shares issued of $509,310 is reflected in the Consolidated Statements of Changes In Stockholders' Equity.

On February 5, 2024, an investor in our Company became a greater than 10% shareholder of the Company converted an outstanding promissory note dated October 16, 2023, as amended on November 13, 2023 (the "Convertible Note"), in the amount of $120,000, plus accrued interest of $3,255 into 164,340 shares of the Company's common stock. The maturity date of the Convertible Note was May 14, 2024, the interest rate was 10% per annum and the effective conversion price was $0.75 per share.

**Sale of Common Stock**

On August 4, 2023, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with two accredited investors (the "Investors"), pursuant to which the Company agreed to issue and sell to the Investors in a registered direct offering (the "Registered Offering") 1,200,002 shares ("Registered Shares") of the Company's common stock (the "Common Stock") at a price of $1.50 per share. Under the Purchase Agreements, the Company also agreed to issue and sell to the Investors in a concurrent private placement (the "Private Placement," and together with the Registered Offering, the "Offering") warrants to purchase an aggregate of 1,200,002 shares of Common Stock (the "Warrants"). Net proceeds from the Registered Offering were $1,775,782, after deducting offering expenses of $24,218. The net proceeds were allocated between the common stock and warrants based on the relative fair values which were $502,417 and $1,273,365, respectively. The Warrants are exercisable any time on or after February 5, 2024 and prior to August 10, 2026 at an exercise price of $2.00 per share.

On December 6, 2023, the Company entered into a Private Offering (the "Purchase Agreement") with five accredited investors (the "Investors"), pursuant to which the Company agreed to issue and sell to the Investors in a direct offering 352,224 shares of the Company's common stock (the "Common Stock") at a price of $0.90 per share. Under the Purchase Agreements, the Company also agreed to issue and sell to the Investors in a concurrent private placement (the "Private Placement," and together with the Offering, the "Offering") warrants to purchase an aggregate of 352,224 shares of Common Stock (the "Warrants"). Net proceeds from the Offering were $317,000 offset by a stock receivable of $27,000 which was received in January 2024. The proceeds were allocated between the common stock and warrants based on the relative fair values which were $145,820 and $171,180, respectively. The Warrants are exercisable any time from the issue date and prior to December 9, 2026, at an exercise price of $1.50 per share.

On February 2, 2024, the Company sold 1,386,469 units to thirteen investors, each unit consisting of one share of restricted common stock and one warrant to purchase one share of common stock, at a price of $0.90 per unit. In total the Company raised $1,247,819 pursuant to the private offering of the units. The warrants are immediately exercisable, have an exercise price of $1.50 per share (and no cashless exercise rights), and are exercisable until February 1, 2027.

Between April 2024 and February 2025, the Company sold an aggregate of 3,060,588 shares of restricted common stock in private offerings to various investors at prices ranging from $0.50 to $0.70 per share, raising total gross proceeds of $2,050,100.

**Preferred Stock**

For the year ended March 31, 2025, the Company issued 3,045,000 shares of Series A preferred stock in exchange for proceeds of $1,218,000 at a price of $0.40 per share.

The certificate of designation of rights and preferences has an optional conversion provision whereby each share of Series A Preferred Stock shall be convertible at any time at the option of a holder into shares of Common Stock. The Series A Preferred Stock also has an automatic conversion whereby the preferred shares shall automatically convert into Common Stock upon the one-year anniversary of the issuance of the Series A Preferred Stock. There are no dividends attached to the Series A Preferred Stock.

On March 26, 2025, the Company entered into a Subscription Agreement to receive $5,000,000 of equity financing in exchange for 5,000,000 shares of Series B Preferred Stock. The Company initially received $600,000 of proceeds on March 26, 2025, with the investor receiving an option to invest the remaining $4,400,000 pursuant to the same terms and conditions, which was fully received and funded on June 24, 2025.

Series B Preferred Stock is entitled to receive a specific dividend in an annual amount equal to Ten Percent (10%) of the total amount paid to secure the Series B Convertible Preferred Stock. The dividend shall be paid to the holder by the Company in quarterly payments of Common Stock. The amount of shares pursuant to the dividend shall be calculated by dividing the total quarterly dividend payment by the greater of i) the volume weighted average price of the common stock for the prior trading ten (10) day period from the date the quarterly dividend is owed, or ii) fifty cents ($0.50). Also, non-cumulative dividends may be paid when, and if declared by the Company's board of directors. As of March 31, 2025, there were no dividends declared.

Upon any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, no distributions of available funds and assets will be made to the holders of Common Stock until the holders of Series B Preferred Stock and Series A Preferred Stock receive a per share amount equal to the original issue price.

**Common Stock**

During the year ended March 31, 2025, the Company issued a total of 7,122,917 shares of common stock and canceled 25,000 shares, as detailed below:

i) 1,889,434 shares in connection with the sale of stock in April and May 2024 in exchange for proceeds of $1,322,600 at a price of $0.70 per share;

ii) 430,798 shares in April 2024 in connection with the conversion of a convertible note plus interest in exchange for proceeds of $301,558 at a price of $0.70 per share;

iii) 320,000 shares in April 2024 to service providers for consulting services fair valued based on the market price on the date of grant of $173,400;

iv) 56,000 shares in May 2024 to service providers for consulting services fair valued based on the market price on the date of grant of $40,760;

v) 150,000 shares related to vesting of restricted stock units ("RSUs"), vesting in April 2024;

vi) 120,000 shares in July 2024 to service providers for consulting services fair valued based on the market price on the date of grant of $56,020;

vii) 5,000 shares related to vesting of restricted stock units ("RSUs"), vesting in July 2024;

viii) 37,312 shares related to vesting of restricted stock units ("RSUs"), vesting in September 2024;

ix) 240,000 shares in October 2024 to the Company's executive officers, in lieu of compensation fair valued at $132,000, based on the market price on the date of grant;

x) (25000) shares returned in October 2024 by an executive officer for cancellation of shares issued in lieu of compensation valued at $13,750;

xi) 90,000 shares related to vesting of restricted stock units ("RSUs"), vesting in October 2024; and

xii) 225,000 shares in connection with the sale of stock in October and November 2024 in exchange for proceeds of $112,500 at a price of $0.50 per share;

xiii) 25,000 shares in October 2024 to a service provider for consulting services fair valued based on the market price on the date of grant of $11,500;

xiv) 60,000 shares in December 2024 to a service provider for consulting services fair valued based on the market price on the date of grant of $26,280;

xv) 375,000 shares in December 2024 to the Company's executive officers for performance services fair valued based on the market price on the date of grant of $150,750;

xvi) 121,808 shares in December 2024 to the Company's executive officers for conversion of accrued bonus fair valued at $50,000;

xvii) 72,812 shares related to vesting of restricted stock units ("RSUs"), vesting in December 2024.

xviii) 946,154 shares in connection with the sale of stock in January and February 2025 in exchange for proceeds of $615,00 at a price of $0.65 per share;

xix) 104,000 shares in January 2025 to service providers for consulting services fair valued based on the market price on date of grant of $77,780;

xx) 70,000 shares in January and February 2025 to employees for performance services fair valued based on the on date of grant of $41,500;

xxi) 52,500 shares related to vesting of restricted stock units ("RSUs"), vesting in January 2025;

xxii) 20,000 shares in February 2025 to service providers for consulting services fair valued based on the market price on the date of grant of $16,000;

xxiii) 20,000 shares in February 2025 to a Board Director for consulting services fair valued based on the market price on the date of grant of $10,800;

xxiv) 1,000,000 shares in February 2025 for purchase of an exclusive licensing agreement with VetStem, Inc fair valued at $1,000,000

xxv) 20,000 shares in March 2025 to service providers for consulting services fair valued at market on the date of grant of $11,000;

xxvi) 230,770 shares in March 2025 for investment in Digital Landia valued at $150,000;

xxvii) 225,000 shares in March 2025 to the Company's executive officers for performance services fair valued at market on the date of grant of $156,250;

xxviii) 68,628 shares in March 2025 to the Company's executive officers for conversion of accrued bonus fair valued at $35,000;

xxix) 150,072 shares in March 2025 for stock option buyout program fair valued at $72,808;

xxx) 20,312 shares related to vesting of restricted stock units ("RSUs"), vesting in March 2025;

xxxi) 2,317 shares in March 2025 related to a cashless warrant exercise

For the year ended March 31, 2024, the Company issued 6,108,400 shares of common stock as follows:

i) 793,585 shares in connection with the sale of stock in a registered direct offering which closed in April 2023 in exchange for proceeds of $2,182,359 net of offering costs of $88,765, at a price of $2.75 per share. The Company received $137,500 of those proceeds on March 31, 2023. The Company recorded this in common stock to be issued at March 31, 2023, and moved it to common stock and additional paid-in capital upon the issuance of shares of common stock in April 2023.

ii) From April 2023 through June 2023, 30,300 shares related to vesting of RSUs to John Lai, the Company's Chief Executive Officer, in lieu of compensation valued as of $74,589;

iii) From April 2023 through June 2023, 49,998 shares to service providers for consulting services valued at $123,078;

iv) From July 2023 through September, 2023, 349,498 shares to service providers for consulting services valued at market on the date of grant of $740,978;

v) In August 2023, sale of 1,200,002 shares of common stock in exchange for proceeds of $1,775,782, net of offering costs of $24,218, at a price of $1.50 per share;

vi) In August 2023, 385,000 shares issued in connection with the conversion of the Convertible Debentures totaling $577,500 including $27,500 of accrued interest at a price of $1.50 per share;

vii) From August 2023 through September 2023, 34,678 shares issued pursuant to two warrant holder's cashless exercise of warrants for purchase of 63,584 shares of common stock at an average strike price of $1.34 per share;

viii) From July 2023 through August 2023, 28,250 shares related to vesting of restricted stock units ("RSUs");

ix) In August 2023, 20,200 shares issued related to vesting of RSUs to John Lai, the Company's Chief Executive Officer, in lieu of compensation valued at $41,006

x) 125,000 shares in connection with the sale of stock in October 2023 in exchange for proceeds of $200,000;

xi) (250000) shares returned in October 2023 from a service provider for cancellation of consulting agreement valued at $537,500;

xii) During November and December 2024, an aggregate of 674,000 shares were sold pursuant to the "At The Market" (ATM) agreement. Proceeds from the sales were $959,033 less offering expenses of $65,779 to arrive at net proceeds of $893,254;

xiii) From October 2023 through December 2023, 167,004 shares in October 2023 to service providers for consulting services valued at market on the date of grant of $293,123;

xiv) During October through December 2023, 11,250 shares related to vesting of RSUs;

xv) During December 2023, 352,224 shares in connection with the sale of stock in exchange for proceeds of $290,000.

xvi) In January 2024, 1,386,469 shares were sold through the sale of stock in exchange for proceeds of $1,247,819;

xvii) During January through March 2024, 109,834 shares were issued related to vesting of RSUs;

xviii) During January through March 2024, 324,000 shares were issued to service providers for consulting services valued at market on the date of grant of $423,216;

xix) In February 2024, 164,340 shares were issued in connection with the conversion of a convertible note in totaling $123,255 including $3,255 of accrued interest at a price of $.75 per share;

xx) During February 2024, 152,768 shares were sold in connection with the sale of stock in exchange for proceeds of $1,247,819.

The Company has issued shares of common stock to providers of consulting services which are reported in the Consolidated Statements of Stockholders' Equity. The value of these shares is reported as a prepaid expense and are amortized to expense over the contractual life of the respective consulting agreements. The amortization of stock issued for services as reported in the Consolidated Statements of Cash Flows was $229,380 and $442,559 for the years ended March 31, 2025 and 2024, respectively.

**Time-Based Restricted Stock Units**

We have granted time-based restricted stock units to certain participants under the Amended Plan that are stock-settled with common shares. Time-based restricted stock units granted under the Amended Plan vest over three years. Total stock-based compensation expense included in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows was $1,107,520 and $2,109,783 for the years ended March 31, 2025, and 2024, respectively, of which time-based restricted stock units was $319,619 and $667,668 for the years ended March 31, 2025, and 2024, respectively. At March 31, 2025, there was approximately $112,000 of total unrecognized pre-tax compensation expense related to time-based restricted stock units that is expected to be recognized over a weighted-average period of .5 years.

Our time-based restricted stock unit activity for the year ended March 31, 2025, was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Units**<br> **Outstanding** | **Weighted Average Grant Date Fair Value Per Unit** | **Aggregate Intrinsic Value (1)** |
| **Balance at March 31, 2024** | 32000 | 4.08 | 32000 |
| **Granted** | 611250 | 0.66 |  |
| **Vested** | (427936) | 0.89 |  |
| **Cancelled** | (10000) | 3.04 | - |
| **Balance at March 31, 2025** | 205314 | $0.58 | $123188 |

---

1) The aggregate intrinsic value of restricted stock units outstanding is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.60 for the Company's common stock on March 31, 2025.

**Stock Options**

Stock options issued to employees typically vest over three years and have a contractual term of seven years. Total stock-based compensation expense included in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows was $1,107,520 and $2,109,783 for the years ended March 31, 2025, and 2024, respectively, of which stock options was $485,109 and $1,102,522 for the years ended March 31, 2025 and 2024, respectively. At March 31, 2025, there was approximately $4,888 of total unrecognized stock option expense which is expected to be recognized on a straight-line basis over a weighted-average period of 0.2 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. Annually, we make predictive assumptions regarding future stock price volatility, dividend yield, expected term and forfeiture rate. The dividend yield assumption is based on expected annual dividend yield on a grant date. To date, no dividends on common stock have been paid by us. Expected volatility for grants is based on our average historical volatility over a similar period as the expected term assumption used for our options as the expected volatility. The risk-free interest rate is based on yields of U.S. Treasury securities with maturities similar to the expected term of the options for each option group. We use the "simplified method" to determine the expected term of the stock option grants. We utilize this method because we do not have sufficient public company exercise data in which to make a reasonable estimate.

The following table sets forth the assumptions used to estimate fair values of our stock options granted:

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br> **March 31, 2025** | **Year Ended**<br> **March 31, 2024** |
| Expected term | 3 years | 6 years |
| Expected volatility | 135.6% | 75.9 – 95.7% |
| Risk-free interest rate | 4.07% | 3.46% - 4.52 |
| Expected dividend yield | -% | -% |
| Weighted average estimated fair value of options during the year | $0.24 | $1.20 - $2.75 |

---

Our stock option activity for the years ended March 31, 2025 and 2024 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Options**<br> **Outstanding** | **Weighted- Average Exercise Price Per Share** | **Weighted-Average Remaining Contractual Life** | **Aggregate Intrinsic Value <sup>(1)</sup>** |
| **Balance at March 31, 2024** | 1509122 | 1.98 | 5.7 years | $- |
| **Granted** | 122000 | 0.80 |  |  |
| **Cancelled** | (1473168) | 2.02 |  |  |
| **Balance at March 31, 2025** | 157954 | $0.86 | 0.2 years | $- |
| **Options exercisable at March 31, 2025** | 35954 | $1.06 |  |  |

---

(1) The aggregate intrinsic value is calculated as the difference between the
 exercise price of the underlying awards and the closing stock price of $0.60 for the Company's common stock on March 31, 2025 and the closing stock price of $0.60 for the Company's common stock on March 31, 2024.

The following summarizes additional information about our stock options:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended**<br> **March 31, 2024** | **Year Ended**<br> **March 31, 2024** | **Year Ended**<br> **March 31, 2024** | **Year Ended**<br> **March 31, 2024** |
| **Number of:** |  |  |  |  |
| Non-vested options, beginning of period |  | 936707 |  | 709394 |
| Non-vested options, end of period |  | 122000 |  | 936707 |
| Vested options, end of period |  | 35954 |  | 572415 |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br> **March 31, 2025** | **Year Ended**<br> **March 31, 2024** |
| **Weighted-average grant date fair value of:** |  |  |
| Non-vested options, beginning of period | $1.84 | $2.23 |
| Non-vested options, end of period | $0.80 | $1.84 |
| Vested options, end of period | $1.06 | $2.21 |
| Forfeited options, during the period | $- | $2.03 |

---

**Warrants**

During the year ended March 31, 2025, the Company issued warrants to purchase an aggregate of 7,110,232 shares of common stock as follows:

i) 430,798 warrants in April 2024 in connection with the conversion of convertible debentures to common stock valued at $96,456;

ii) 1,889,434 warrants in May 2024 in connection with the sale of stock in a private offering;

iii) 3,045,000 warrants in July 2024 in connection with the sale of Series A preferred stock in a private offering;

iv) 250,000 warrants in February and March 2025 in connection with the purchase of an exclusive license agreement with VetStem; fair value of $46,030;

v) 1,000,000 warrants in February 2025 in connection with the investment in Digital Landia fair valued at $35,197;

vi) 250,000 warrants in February 2025 in connection with two investors who put in $500,000 in a short term convertible note;

vii) 150,000 warrants in February and March 2025 to a board member who put in $300,000 proceeds for a short-term promissory note;

viii) 95,000 warrants in March 2025 to a service provider fair valued at $15,775

During the year ended March 31, 2024 the Company issued warrants to purchase an aggregate of 4,386,463 shares of common stock as follows:

i) 1,200,002 warrants in August 2023 in connection with the sale of stock in the Registered Offering valued at $1,273,365;

ii) 385,000 warrants in August 2023 in connection with the conversion of convertible debentures to common stock valued at $646,197;

iii) 300,000 warrants in August 2023 to service providers valued at $234,741;

iv) 80,000 warrants in August 2023 to service providers valued at $87,485; and

v) 352,224 warrants in December 2023 in connection with the sale of stock in a private offering

vi) 430,000 warrants in January 2024 in connection with the sale of stock in a private offering

vii) 1,639,237 warrants in February 2024 in connection with the sale of stock in a private offering

These warrants' fair values were arrived at by using the Black-Scholes valuation model with the following assumptions:

---

| | |
|:---|:---|
|  | **Year Ended**<br>**March 31, 2025** |
| Stock price on valuation date | $0.49 - $0.68 |
| Exercise price | $0.50 -$3.00 |
| Term (years) | 2.0 – 3.0 |
| Volatility | 115.1% - 140.13 |
| Risk-free rate | 4.02% - 4.64 |

---

A summary of warrant activity for the years ended March 31, 2025, and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br> Warrants** | **Weighted-<br> Average<br> Exercise<br> Price** | **Weighted Average Remaining Contractual Term (in years)** | **Weighted-<br> Average<br> Exercisable<br> Price** |
| **Outstanding, March 31, 2024** | 7768946 | 3.29 | 5.7 | 3.29 |
| **Issued** | 7110232 |  |  |  |
| **Expired** | (246319) | - | - | - |
| **Outstanding, March 31, 2025** | 14632859 | $2.40 | 2.1 | $2.40 |

---

Total stock-based compensation expense included in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows was $1,107,520 and $2,109,783 for the years ended March 31, 2025, and 2024, respectively, of which warrants was $300,230 and $339,644 for the year ended March 31, 2025 and 2024, respectively. At March 31, 2025, there was no future unrecognized warrant expense.

**<u>NOTE 15 – INCOME TAXES</u>**

The following table presents the net deferred tax assets as of March 31, 2025 and 2024:

SCHEDULE OF DEFERRED TAX

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Net operating loss carryforwards | $12723000 | 10786000 |
| Stock compensation | 1857000 | 1539000 |
| Other | 98000 | 74000 |
| Total deferred tax assets | 14678000 | 12399000 |
| Valuation allowance | (14678000) | (12399000) |
| Net deferred tax assets | $- | $- |

---

Current income taxes are based upon the year's income taxable for federal and state tax reporting purposes. Deferred income taxes (benefits) are provided for certain income and expenses, which are recognized in different periods for tax and financial reporting purposes.

Deferred tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the period in which the differences are expected to affect taxable income. The Company's deferred income taxes arise from the temporary differences between financial statement and income tax recognition of net operating losses. These loss carryovers would be limited under the Internal Revenue Code should a significant change in ownership occur within a three-year period.

At March 31, 2025 and 2024, respectively, the Company had net operating loss carryforwards of approximately $44,300,000 and $37,500,000. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, the projected future taxable income and tax planning strategies in making this assessment. Based on management's analysis, they concluded not to retain a deferred tax asset since it is uncertain whether the Company can utilize this asset in future periods. Therefore, they have established a full reserve against this asset. The change in the valuation allowance during the years ended March 31, 2025 and 2024 was approximately $2,279,000 and $3,037,000, respectively. The net operating loss carryforwards prior to 2019, if not utilized, generally expire twenty years from the date the loss was incurred, and losses incurred after 2019 are carried forward indefinitely and subject to annual limitations for federal and Minnesota purposes.

Of the approximately $44,300,000 in net operating loss carryforwards, approximately $7,000,000 has been accumulated in our pre-merger operating subsidiary, Gel-Del Technologies, Inc. IRC 382 provides guidance around whether or not the Company is able to utilize the pre-merger Gel-Del Technologies, Inc. net operating loss of approximately $7,000,000. Management is currently analyzing whether or not these pre-merger dollars will be allowable if our deferred tax asset is ever realized.

The reconciliation of the statutory federal rate to the Company's effective income tax rate is as follows:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Tax benefits at statutory rate | 21.0% | 21.0% |
| State income tax benefit, net of federal | 7.7% | 7.7% |
|  | 28.7% | 28.7% |
| Valuation allowance | (28.7%) | (28.7%) |
| Net effective rate | - | - |

---

The Company's continuing practice is to recognize interest and/or penalties related to income tax matters in income tax expense. As of March 31, 2025 and 2024, the Company had no accrued interest and penalties related to uncertain tax positions.

The Company is subject to taxation in the U.S. and Minnesota. Our tax years for 2020 and forward are subject to examination by tax authorities. The Company is not currently under examination by any tax authority.

Management has evaluated tax positions in accordance with FASB ASC 740, and has not identified any tax positions, other than those discussed above, that require disclosure.

**<u>NOTE 16 – SEGMENT REPORTING</u>**

The Company manages the business activities on a consolidated basis and operates in one reportable segment. The Company's reportable segment is an emerging biomedical device company focused on the manufacturing, commercialization, and licensing of innovative medical devices and therapeutics for animals. The segment is animal health products. As the Company has one reportable segment, sales and marketing, research and development, including clinical trial expenses and general and administrative expenses are equal to consolidated results. Financial results for the Company's reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's Chief Operating Decision Maker ("CODM") in allocating resources and in assessing performance. The Company's CODM is the Chief Financial Officer. The measurement of segment profit or loss that the CODM uses to evaluate the performance of the Company's segment is net income attributable to animal health financial budgets and actual results used by the CODM to assess performance and allocate resources, as well as strategic decisions related to headcount and other expenditures are reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on operating income (loss) when deciding where and when to make expenditures.

SCHEDULE OF SEGMENT INFORMATION TEXT BLOCK

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| | | |
|:---|:---|:---|
|  | **For the Years Ended March 31,** | **For the Years Ended March 31,** |
|  | **2025** | **2024** |
| NET REVENUE | $1132533 | $968706 |
| Cost of Sales | 137677 | 101823 |
| Gross Profit | 994856 | 866883 |
| OPERATING EXPENSES |  |  |
| Sales and marketing | 2644095 | 3399666 |
| Research and development | 1583250 | 1395371 |
| General and administrative | 4823230 | 6693186 |
| Total operating expenses | 9050575 | 11488223 |
| NET OPERATING LOSS | (8055720) | (10621340) |

---

**<u>NOTE 17 – SUBSEQUENT EVENTS</u>**

On April 1, 2025, the Company issued 52,500 shares related to vesting of restricted stock units ("RSUs").

From April 3, 2025 to July 10, 2025, the Company issued a total of 68,000 shares to service providers for consulting services with a fair value on the date of grant of $46,420.

On June 6, 2025, the Company issued 70,000 shares related to a warrant exercise with proceeds of $140,000.

On June 10, 2025, the Company entered into a short-term convertible promissory note with an accredited investor for $160,000 with an annual interest rate of 10% and a maturity date of December 31, 2025. The principal amount and all accrued interest of the convertible note may be converted to shares of common stock ("Shares") at a conversion price of $0.75 per Share. The Company also issued 75,000 warrants, with a strike price of $0.75, a term of 2 years and a relative fair value of approximately $20,000, which will be reflected as a discount to the convertible note.

In May and June 2025, the Company received $4,400,000 in connection with the Series B Preferred Stock subscription receivable.

In May and June 2025, three of the Company Directors collectively entered into three short-term notes in an aggregate amount of $12,000 with an annual interest rate of 10% and a maturity date that is the earlier of December 31, 2025, or the closing of our Series B Preferred round.

On June 10, 2025, the Company issued 225,000 warrants to two consultants, with a strike price of $0.75, having a three-year term and fair valued at $68,363, which will be expensed over thirty-six months.

In June 2025, a warrant holder exercised 70,000 warrants with a strike price of $2.00 per share resulting in $140,000 proceeds to the Company. As an inducement to have the warrant holder exercise the warrant at $2.00 when the closing price of the common stock was $0.70, the Company issued the warrant holder 70,000 new warrants, with a three year term, a strike price of $1.00 per share and a fair value of approximately $17,000, which was immediately expensed.

On July 1, 2025, pursuant to an employment letter, the Company issued 16,694 shares of restricted common stock to an employee, fair valued at $12,000, which will be expensed over six month service period.

## Exhibit 10.1

**Exhibit 10.1**

**<u>FIRST AMENDMENT TO</u>**

**<u>EXECUTIVE EMPLOYMENT AGREEMENT</u>**

THIS FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (this "**Amendment**") is effective as of November 1, 2022, by and between PetVivo Holdings, Inc., a Nevada corporation (the "**Company**") and John Lai (the "**Executive**" and together with the Company, each a **"Party**,**"** and collectively the **"Parties.**")

<u>RECITALS</u>

**WHEREAS**, the Parties entered into that certain Executive Employment Agreement dated as of November 10, 2021 (as the same now exists or may hereafter be amended, modified, supplemented, renewed, restated, or replaced, the "**Employment Agreement**"); and

**WHEREAS**, pursuant to Section 3.1 of the Employment Agreement, the Compensation Committee of the Board of Directors of the Company conducted its annual performance and compensation review of the Executive and approved an increase to Executive's Base Salary.

**WHEREAS**, the Parties desire to modify the Employment Agreement to reflect the salary increase as set forth herein.

**NOW, THEREFORE**, in consideration of the premises, the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

<u>AGREEMENT</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used herein and not defined herein shall have the meaning ascribed to such term as set forth in the Employment Agreement, and all references to Sections, shall mean the Sections of the Employment Agreement unless reference is made to another document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendment to Employment Agreement</u>. Section 3.1 of the Employment Agreement is hereby amended such that the Executive's Base Salary is increased from $275,000 to $350,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Full Force and Effect</u>. Except as specifically amended, modified, or supplemented by this Amendment, the Employment Agreement, as amended, shall remain unchanged and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Governing Law</u>. The Parties expressly agree that (a) this Amendment shall be governed by, and construed in accordance with, the laws of the State of Minnesota, without giving effect to any conflict-of-law principles and (b) Section 8.2 of the Employment Agreement shall apply to any dispute hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Counterparts</u>. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature) or other commonly recognized transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[Signature Page Follows]

**IN WITNESS WHEREOF**, the parties have executed this Amendment as of the date first written above.

**EXECUTIVE:**

---

| | |
|:---|:---|
| By: | */s/ John Lai* |
|  | John Lai |

---

By: <u>/*s/ Robert J. Folkes*</u> <br> Robert J. Folkes, <br> Chief Financial Officer

**SECOND AMENDMENT TO EMPLOYMENT AGREEMENT<br> BETWEEN PETVIVO HOLDING, INC. AND JOHN LAI**

THIS SECOND AMENDMENT (this "Amendment") by and among PetVivo Holdings, Inc. ("PETVIVO" or the "Company"), and John Lai ("Employee") is made and entered into as of the 24<sup>th</sup> day of March, 2025 and having an Effective Date of May 1, 2024.

**<u>RECITALS</u>**

**WHEREAS**, the Company and Employee entered into an Employment Agreement dated as of November 10, 2021 ("Employment Agreement"); and

**WHEREAS**, PETVIVO and Employee would like to amend the provisions of the Employment Agreement in view of the desire of the Parties to extend the Agreement and adjust the compensation to the Employee to reduce the amount of Base Salary and provide other mutually-agreed compensation for the reduction.

**WHEREAS**, PETVIVO would like to extend the term of the Employment Agreement to end on March 31, 2027.

**WHEREAS**, PETVIVO and Employee would like the terms of this Amendment to be implemented on the Effective Date, May 1, 2024.

**NOW**, **THEREFORE**, in consideration of the above recitals and the covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**<u>AGREEMENT</u>**

1. Defined Terms. Capitalized terms that are used in this Amendment have the meanings set forth in the Employment Agreement, unless otherwise defined in this Amendment. Note that underlined text denotes additions and strikethrough text denotes deletions to the Employment Agreement.

2. In Section 2.5 of the Employment Agreement entitled "Term", this Section shall be deleted in its entirety and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 Term.** Subject to the provisions of Article IV, the term of employment of Executive under this Agreement shall commence on the date set forth above and continue until March 31, 2027 (the "Term").

3. In Section 3.1 of the Employment Agreement entitled "Base Salary", this Section shall be deleted in its entirety and replaced with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Base Salary.** The Company shall pay Executive the Base Salary to Executive in gross bi-monthly payments of Six Thousand Two Hundred Fifty Dollars ($6,250.00) payable on the 15<sup>th</sup> day and last day of each month for the remaining term of this Agreement or until termination. Executive shall be paid a Base Salary at an annual rate that is not less than One Hundred Fifty Thousand Dollars ($150,000.00) or such higher annual rate as may from time to time be approved by the Board of Directors or Compensation Committee.

4. The Company and Executive mutually agree to negotiate in good faith a fair and reasonable plan to provide compensation to the Executive that shall replace the Base Salary that is relinquished as a result of the reduction.

IN WITNESS WHEREOF, each of the parties has caused this Amendment to the Employment Agreement between the parties entered into on March 24, 2025 to be executed in the manner appropriate to each.

[*Signature Page to Follow*]

---

| | |
|:---|:---|
| PETVIVO, INC. | PETVIVO, INC. |
| By: |  |
|  | Garry Lowenthal |
|  | Chief Financial Officer |
| EMPLOYEE | EMPLOYEE |
| By: |  |
|  | John Lai |

---

## Exhibit 10.2

**Exhibit 10.2**

**EXECUTIVE EMPLOYMENT AGREEMENT**

THIS EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement"), dated the 10th day of November, 2021 (the "Effective Date"), is by and between PetVivo Holdings, Inc. a Nevada corporation ("Company"), and Robert J. Folkes, a resident of Minnesota ("Executive").

**RECITALS**

A. Company wishes to hire and Executive wishes to be employed by the Company in the capacity of Chief Financial Officer of the Company; and

B. In connection with this Agreement, the Company and Executive are hereby terminating the Employment Agreement between the Company and Executive dated April 14, 2021 ("Prior Employment Agreement").

C. In consideration of the foregoing promises and the parties' mutual covenants and undertakings contained in this Agreement, the Company and Executive agree as follows:

**ARTICLE I.**

**<u>DEFINITIONS</u>**

Capitalized terms used in the Agreement shall have their defined meaning throughout the Agreement. The following terms shall have the meanings set forth below, unless the context clearly requires otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 "Accrued Obligations"** shall have the meaning set forth in Section 4.1(g).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 "Base Salary"** shall have the meaning set forth in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 "Board"** means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 "Cause"** shall have the meaning set forth in Section 4.1(c) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5 "Company"** means all of the following, jointly and severally: (a) PetVivo Holdings, Inc; (b) any subsidiary; and (c) any successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6 "Confidential Information"** means information that is proprietary to the Company or proprietary to others and entrusted to the Company, whether or not a trade secret. Confidential Information includes, but is not limited to, information relating to business and operating plans and to business as conducted during Executive's employment with the Company or anticipated to be conducted, as evidenced by Company documents in existence as of the Termination Date, and to past or current or anticipated information as evidenced by Company documents in existence (as of the Termination Date), products or services. Confidential Information also includes, without limitation, information concerning research, development, purchasing, accounting, marketing, distribution and selling. All information that Executive has a reasonable basis to consider confidential is Confidential Information, whether or not originated by Executive and without regard to the manner in which Executive obtains access to this and any other proprietary information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7 "Disability"** means the Executive's inability by reason of physical or mental illness to fulfill his obligations hereunder for thirty (30) consecutive days or a total of ninety (90) days (whether or not consecutive) in any 180-day period, which, in the reasonable opinion of an independent physician selected by the Company or its insurers and reasonably acceptable to the Executive or the Executive's legal representative, renders the Executive unable to perform the essential functions of his job, even after reasonable accommodations are made by the Company, and which inability by reason of such physical or mental illness to fulfill his obligations has not been cured, as determined by such physician prior to the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.8 "Executive"** means Robert J. Folkes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.9 "Incentive Plan"** means the PetVivo Holdings, Inc. 2020 Equity Incentive Plan and any other equity compensation plans approved and adopted by the Board of Directors and shareholders after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.10 "Inventions"** means all inventions, original works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks (and all associated goodwill), mask works or trade secrets, whether or not such are patentable, copyrightable or protectable under any statutory or regulatory scheme, and whether or not in writing or reduced to practice, which Executive may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during Executive's employment by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.11** "**Stock Award**" means, individually or collectively, an option, stock appreciation right, restricted stock award, restricted stock unit, deferred stock unit, performance award, or other stock-based award, in each case granted to the Executive pursuant to the Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.12 "Termination Date"** shall mean the date specified in the Termination Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.13 "Termination Notice"** shall have the meaning set forth in Section 4.1(f).

**ARTICLE II.**

**<u>EMPLOYMENT, DUTIES, AND TERM</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Employment.** Upon the terms and conditions set forth in this Agreement, the Company hereby employs Executive, and Executive accepts such employment, as the Chief Financial Officer of the Company. Except as expressly provided herein, termination of this Agreement by either party or by mutual agreement of the parties shall also terminate Executive's employment by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Duties.** During the Term (as defined in Section 2.5 of this Agreement), the Executive shall serve as the Chief Financial Officer of the Company under the direction of the Board of Directors of the Company (the "Board"). During the Term the Executive shall devote all of Executive's business time, skill, and energies to promote the interests of the Company and to serve such positions with the Company as may be reasonably assigned by the Board which are consistent with the title of Chief Financial Officer of the Company. Executive shall undertake to perform all of Executive's duties and responsibilities for the Company and any current and/or future affiliates of the Company in good faith and on a full-time basis and shall at all times act in good faith in the course of Executive's employment under this Agreement and in the best interests of the Company and its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Certain Proprietary Information.** If Executive possesses any proprietary information of another person or entity as a result of prior employment or relationship, Executive shall honor any legal obligation that Executive has with that person or entity with respect to such proprietary information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 No Conflict.** The Executive represents and warrants that Executive is not a party to or subject to any agreement, covenant, understanding, or under any obligation, contractual or otherwise, to any firm, person or corporation, which would prevent his employment by the Company or adversely affect his ability to serve as an executive of the Company, as herein contemplated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 Term.** Subject to the provisions of Article IV, the term of employment of Executive under this Agreement shall commence on the date set forth above and continue until September 30, 2024 (the "Term").

**ARTICLE III.**

**<u>COMPENSATION, BENEFITS AND EXPENSES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Base Salary.** The Company will pay to Executive an annual base salary ("Base Salary") of $240,000 per year, less deductions and withholdings, which Base Salary will be paid in accordance with the Company's normal payroll policies and procedures. During each year after the first year of Executive's employment hereunder, the Compensation Committee of the Board (the "Committee") may review and increase Executive's Base Salary in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Award Grants**. During the Term, the Executive shall be eligible to receive one or more equity-based incentive awards at the discretion of the Committee. The terms of such awards, if any, shall be determined in the sole discretion of the Committee, including the types of awards, the number of securities covered by each award, the vesting conditions applicable to each award, and the manner in which awards are to be paid or settled. Nothing herein shall obligate the Company to make an equity award to the Executive at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Performance Bonus Compensation.** Executive may be eligible for a cash performance/incentive bonus that is approved and granted by the Committee pursuant to the achievement of milestones established by the Committee; such a performance/incentive bonus ("Bonus") shall be equal to fifty percent (50%) of the Base Salary of the Executive or such other percentage as determined by the Committee. Any Bonus shall be paid within seventy-four (74) days of the Company's fiscal year end. The Committee will consider such performance-based bonuses, including the milestones for such bonuses, for the Executive on a regular basis, which shall occur at least once each calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Benefits and Paid Time Off**. Executive shall be eligible to participate in any and all executive or employee benefits, including but not limited to any pension, equity incentive, health, welfare and fringe benefits Company maintains for its employees of similar tenure and grade, subject to and on a basis consistent with the terms of each such Plan or program and consistent with executives of similar tenure or grade. The Executive shall be entitled to paid time off in accordance with the Company's employment policies addressing paid time off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 Business Expenses**. The Company will reimburse Executive for all reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by the Executive in the performance of the duties and responsibilities hereunder, subject to the Company's normal policies and procedures for expense verification and documentation.

**ARTICLE IV.**

**<u>TERMINATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Employment Term.** The Executive's employment under this Agreement may be terminated prior to the end of the Term upon the earlier to occur of any of the following events (at which time the Term shall be terminated):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Death</u>. The Executive's employment hereunder shall terminate upon his death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Disability</u>. The Company shall be entitled to terminate the Executive's employment hereunder for Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cause</u>. The Company may terminate the Executive's employment hereunder for Cause. For purposes of this Agreement, the term "<u>Cause</u>" shall include, without limitation, the following: (i) conviction (or a plea of *nolo contendere*) by the Executive to a felony; (ii) acts of fraud, dishonesty or misappropriation committed by the Executive and intended to result in substantial personal enrichment at the expense of the Company; (iii) willful, intentional or reckless misconduct by the Executive in the performance of the Executive's material duties required by this Agreement which materially damage or are reasonably likely to materially damage the financial position or reputation of the Company; or (iv) a material breach of this Agreement by the Executive which is not cured within thirty (30) days following receipt by the Executive of a Termination Notice from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Without Cause</u>. The Company may terminate the Executive's employment hereunder during the Term without Cause, for any reason, *provided* that the Company delivers to the Executive the Termination Notice at least thirty (30) days in advance of the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Voluntarily</u>. The Executive may voluntarily terminate his employment hereunder, *provided* that the Executive delivers to the Company the Termination Notice at least thirty (30) days in advance of the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notice of Termination</u>. Any termination of the Executive's employment hereunder by the Company or by the Executive during the Term shall be communicated by written notice of termination to the other party hereto in accordance with Section 8.4 (the "Termination Notice"). The Termination Notice shall specify: (i) the termination provisions of this Agreement relied upon, (ii) to the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provisions so indicated, and (iii) the applicable date of termination ("Termination Date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Accrued Obligations Upon Termination</u>. Upon termination of Executive's employment with the Company for any reason, the Company shall be obligated to pay to Executive, all Base Salary earned by Executive through his last day of employment, and any earned and payable (but as of yet unpaid) Annual Bonus for the previous year, any accrued but unused vacation/paid time off and any unreimbursed business expenses to the extent incurred before the termination and for which he would have been entitled to reimbursement but for the termination of employment (to the extent that they have been properly submitted or are due, or if not previously submitted or reviewed by the Company, the Company shall promptly review them if promptly submitted by the Executive thereafter), which are referred to herein as the "Accrued Obligations".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Compensation Upon Termination**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Disability or Death</u>. If the Executive's employment is terminated as a result of his Disability or death, the Company shall pay, as soon as practicable, but not later than sixty (60) days of such termination, to the Executive or to the Executive's estate, as applicable, the Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination for Cause</u>. If the Executive's employment is terminated by the Board for Cause, then the Company shall pay to the Executive, no later than the next pay date, the Accrued Obligations and the Executive shall have no further entitlement to any other compensation or benefits from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination by the Company without Cause</u>. If the Executive's employment is terminated by the Company other than as a result of the Executive's death or Disability and other than for Cause, then the Company shall pay to the Executive, no later than the next pay date, the Accrued Obligations. In addition, the Company shall make a lump sum severance payment to the Executive in an amount equal to six (6) months of his Base Salary, within ten (10) days following receipt of the Release required under Section 4.2(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Voluntary Termination by the Executive</u>. If the Executive voluntarily terminates his employment, then the Company shall pay to the Executive, no later than the next pay date, the Accrued Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Stock Awards</u>. If the Executive's employment is terminated for any reason, the vesting, exercisability and termination of the Stock Awards shall be determined by the terms in the award agreement for each Stock Award and/or the terms of the Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Release</u>. The Company shall have no obligation to make any severance payment under Section 4.2(c) unless the Executive executes and delivers (without revoking) to the Company within sixty (60) days following the Executive's Termination Date a general release in form and substance satisfactory to the Company of any and all claims he may have against the Company and its affiliates (the "Release").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Exclusive Obligations</u>. This Section 4.2 sets forth the only obligations of the Company with respect to the termination of the Executive's employment with the Company, and the Executive acknowledges that, upon the termination of his employment, he shall not be entitled to any payments or benefits which are not explicitly provided in this Section 4. The provisions of this Section 4.2 shall survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Return of Property.** Upon termination of Executive's employment for any reason, be it voluntary or involuntary, Executive shall promptly deliver to the Company (a) all records, manuals, books, documents, client lists, letters, reports, data, tables, calculations, prototypes and any and all copies of any of the foregoing which are the property of the Company or which relate in any way to the business or practices of the Company, and (b) all other property of the Company and Confidential Information which in any of these cases are in his possession or under his control. Executive shall not retain any copies or summaries of any kind of documents and materials covered by this Section 4.3.

**ARTICLE V.**

**<u>CONFIDENTIAL INFORMATION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Prohibitions Against Use.** Executive will not, during or subsequent to the termination of Executive's employment under this Agreement, use or disclose, other than in connection with Executive's employment with the Company, any Confidential Information to any person not employed by the Company or not authorized by the Company to receive such Confidential Information, without the prior written consent of the Company. Executive will use reasonable and prudent care to safeguard and protect and prevent the unauthorized use and disclosure of Confidential Information. The obligations contained in this Section 5.1 will survive for as long as the Company in its sole judgment considers the information to be Confidential Information. The obligations under this Section 5.1 will not apply to any Confidential Information that is now or becomes generally available to the public through (a) no fault of Executive or (b) to Executive's disclosure of any Confidential Information required by law or judicial or administrative process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Proprietary Information**. If Executive has possessed or possesses any proprietary information of another person or entity as a result of prior employment or relationship, Executive shall honor any legal obligation that Executive has with that person or entity with respect to such proprietary information.

**ARTICLE VI.**

**<u>NON-COMPETITION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Non-Competition.** Subject to Sections 6.2 and 6.3, Executive agrees that during the Term of this Agreement and for a period of one (1) year following termination of his employment for any reason, Executive will not, anywhere in the world, directly or indirectly, alone or as a partner, officer, director, shareholder or employee of any other firm or entity, engage in any commercial activity in competition with the Company which activity involves the development, distribution, sales or marketing of manufactured biomaterials containing proteins including, but not limited to, collagen-, elastin-, casein- or fibrin-containing products for any medical application. For purposes of this paragraph, "shareholder" shall not include beneficial ownership of less than five percent (5%) of the combined voting power of all issued and outstanding voting securities of a publicly held corporation whose stock is traded on a major stock exchange or quoted on a major stock exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 Covenant Not to Recruit.** Executive recognizes that the Company's workforce constitutes an important and vital aspect of its business on a world-wide basis. Executive agrees that for a period of one (1) year following the termination of this Agreement for any reason whatsoever, he shall not solicit, or assist anyone else in the solicitation of, any of the Company's then-current employees to terminate their employment with the Company and to become employed by any business enterprise with which the Executive may then be associated, affiliated or connected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 Judicial Modification.** If any of the foregoing covenants are deemed by a court of competent jurisdiction to be unenforceable because of their scope or duration, or the area or subject matter covered thereby, the Company and Executive agree that the court making such determination shall have the power to reduce or modify the scope, duration, subject matter and/or area of such covenant to the extent that allows the maximum scope, duration, subject matter and area permitted by applicable law.

**ARTICLE VII.**

**<u>INVENTIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 Assignment of Inventions**. Executive shall promptly make full, written disclosure to the Company, and will hold in trust for the sole right and benefit of the Company, and hereby irrevocably transfers and assigns, and agrees to transfer and assign, to the Company, or its designee, all his right, title and interest in and to any and all Inventions. Executive further acknowledges that all original works of authorship which are made by Executive (solely or jointly with others) within the scope of and during the period of his employment with the Company and which may be protected by copyright are "Works Made For Hire" as that term is defined by the United States Copyright Act. Executive understands and agrees that the decision whether to commercialize or market any Invention developed by Executive (solely or jointly with others) is within the Company's sole discretion and the Company's sole benefit and that no royalty will be due to Executive as a result of the Company's efforts to commercialize or market any such Invention.

Executive recognizes that Inventions relating to his activities while working for the Company and conceived or made by Executive, whether alone or with others, within one (1) year after cessation of Executive's employment, may have been conceived in significant part while employed by the Company. Accordingly, Executive acknowledges and agrees that such Inventions shall be presumed to have been conceived during Executive's employment with the Company and are to be, and hereby are, assigned to the Company unless and until Executive has established the contrary.

The requirements of this Section 7.1 do not apply to any intellectual property for which no equipment, supplies, facility or trade secret information of the Company was used, and which was developed entirely on the Executive's own time, and (a) which does not relate (i) directly to the Company's business or (ii) to the Company's actual or demonstrably anticipated research and development or (b) which does not result from any work the Executive performed for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2 Maintenance of Records**. Executive agrees to keep and maintain adequate and current written records of all Inventions made by Executive (solely or jointly with others) during his employment with the Company. The records will be in the form of notes, sketches, drawings and any other format that may be specified by the Company. The records will be available to and remain the sole property of the Company at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3 Trademark and Copyright Registrations**. Executive agrees to assist the Company, or its designee, at the Company's expense, in every proper way to secure the Company's rights in the Inventions and any copyrights, patents, trademarks, service marks, mask works, or any other intellectual property rights in any and all countries relating thereto, including, but not limited to, the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments the Company reasonably deems necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title, and interest in and to such inventions, and any copyrights, patents, trademarks, service marks, mask works, or any other intellectual property rights relating thereto. Executive further agrees that his obligation to execute or cause to be executed, when it is in his power to do so, any such instrument or paper shall continue after termination or expiration of this Agreement or the cessation of his employment with the Company. If the Company is unable, because of Executive's mental or physical incapacity or for any other reason, after reasonably diligent efforts, to secure Executive's signature to apply for or to pursue any application for any United States or foreign patents, trademarks or copyright registrations covering inventions or original works of authorship assigned to the Company as above, then Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Executive's agent and attorney-in-fact to act for and on his behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters, patents, trademarks or copyright registrations thereon with the same legal force and effect as if executed by Executive; this power of attorney shall be a durable power of attorney which shall come into existence upon Executive's mental or physical incapacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4 Prior Inventions**. Executive has identified on Exhibit A to this Agreement all Inventions relating in any way to the Company's business or demonstrably anticipated research and development that were made by Executive prior to employment with the Company, and Executive represents that such list is complete. Executive represents that Executive has no rights in any such Inventions other than those specified in Exhibit A. If there is no such list on Exhibit A, Executive represents that Executive has made no such Inventions at the time of signing this Agreement. Executive shall not incorporate, or permit to be incorporated, any prior Invention owned by Executive or in which he has an interest in a Company product, process or machine without the Company's prior written consent.

**ARTICLE VIII.**

**<u>GENERAL PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 No Adequate Remedy.** The parties declare that it is impossible to accurately measure in money the damages which will accrue to either party by reason of a failure to perform any of the obligations under this Agreement. Therefore, if either party shall institute any action or proceeding to enforce the provisions hereof, other than a claim by Executive for a payment pursuant to Section 4 of this Agreement, the party against whom such action or proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at law, and such party shall not assert in any such action or proceeding the claim or defense that such party has an adequate remedy at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 Arbitration.** Any claim arising out of or relating to Executive's employment with the Company including claims: (a) arising out of termination or discipline (including constructive discharge) or any denial of promotion; (b) relating to breach of contract (express or implied); (c) relating to tort; (d) relating to wages or other compensation due; (e) relating to benefits (except claims under an employee benefit or pension plan that either (i) specifies that its claims procedures shall culminate in an arbitration procedure different from this one, or (ii) is underwritten by a commercial insurer which decides claims; (f) concerning discrimination disputes (including, but not limited to race, sex, sexual orientation, religion, national origin, age, marital status, or disability), including complaints regarding hostile work environment, or other prohibited discriminatory conduct; and (g) concerning violation of any law, statute, regulation or ordinance, shall be settled by arbitration administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

Notwithstanding the above, claims that are not arbitrable are those for injunctive and/or other equitable relief, including but not limited to those for unfair competition and the use or disclosure of Confidential Information, as to which the Executive agrees that the Company may seek and obtain relief from a court of competent jurisdiction. Claims for workers' compensation or unemployment compensation benefits are also excluded from this requirement for arbitration.

The aggrieved party must give written notice to the other party of any claim. The written notice shall identify and describe the nature of the claims asserted and the facts upon which such claims are based. Except for such claims listed above which are not arbitrable, for all other claims this Section 8.2 specifically includes a waiver of the right to a court trial and a trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3 Successor and Assigns.** This Agreement shall be binding upon the parties hereto, their heirs, devisees, legal representatives, administrators, successors and assigns. Company may assign any or all of its rights and delegate its duties under this Agreement including, without limitation, those contained in the restrictive covenants provided in Section 6 of this Agreement without the consent of Executive to any subsidiary or affiliate of Company, to the purchaser of all or substantially all of Company's assets or stock, or any other successor to Company's business. In such case, the covenants and agreements made by Executive herein shall inure to the benefit of and protect Company's assigns or the successors in interest. This Agreement is personal to the Executive and may not be assigned by him. Except as provided in this Section, no party may assign or transfer his or its interests herein, or delegate his or its duties hereunder, without the written consent of the other party. Any assignment or delegation of duties in violation of this provision shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4 Notices.** All notices, requests and demands given to or made pursuant hereto shall, except as otherwise specified herein, be in writing and be personally delivered or mailed via overnight courier, with written confirmation of receipt, to the Company at its registered principal office or to the Executive at the address reflected in the Company's employment records as Executive's address. Either party may, by notice hereunder, designate a changed address. All notices and other communications given to any party hereto in accordance with the provisions of this Agreement will be deemed to have been given on the date of delivery if personally delivered or on the business day after the date when sent if sent by overnight courier, in each case addressed to such party as provided in this Section 8.4 or in accordance with the latest unrevoked direction from such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5 Captions; Construction.** The various headings or captions in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6 Governing Law.** The validity, interpretation, construction, performance, enforcement and remedies of or relating to this Agreement, and the rights and obligations of the parties hereunder, shall be governed by the substantive laws of the State of Minnesota (without regard to the conflict of laws, rules or statutes of any jurisdiction), and any and every legal proceeding arising out of or in connection with this Agreement shall be brought in the appropriate courts of the State of Minnesota, each of the parties hereby consenting to the exclusive jurisdiction of said courts for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7 Waivers.** No failure on the part of either party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise or any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8 <u>Section 409A</u>**. It is the parties' intention that any severance payment under Section 4.2(c) of this Agreement will be exempt from the requirements of Section 409A of the Internal Revenue Code, and guidance issued thereunder ("<u>Section 409A</u>") as a short term deferral under Treas. Reg. Sec. 1.409A-1(b)(4) and this Agreement shall be construed and administered in a manner consistent with such intent. Payments on account of a termination of employment may only be made upon a "separation from service" as defined under Section 409A. To the extent the payments under this Agreement are subject to Section 409A, the Agreement shall be interpreted and administered in a manner that complies with Section 409A. If at the time of the Executive's termination of employment Executive is a "specified" employee under Section 409A, then any payment or payments of deferred compensation subject to Section 409A that are payable on account of such termination shall not be made or commenced until the first day following the earlier of (a) the expiration of the six (6)-month period measured from the date of the "separation from service", or (b) the date of Executive's death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.9 Entire Agreement, Modification.** This Agreement constitutes the entire agreement and understanding between the parties hereto in reference to all the matters herein agreed upon. This Agreement replaces in full all prior employment agreements, consulting agreements or understandings of the parties hereto, and any and all such prior agreements or understandings are hereby rescinded by mutual agreement. This Agreement may not be modified or amended except by a written instrument signed by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.10 Execution in Counterparts.** This Agreement may be executed by each party in separate counterparts and by facsimile or PDF signatures, and each such duly executed counterpart shall be of the same validity, force and effect as the original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.11 Survival.** The parties expressly acknowledge and agree that the provisions of this Agreement which by their express or implied terms extend beyond the termination of Executive's employment hereunder (including, without limitation, the provisions of Sections 3.3, 3.4, and 4.2 or beyond the termination of this Agreement (including, without limitation, the provisions of Article V, Article VI and Article VII) shall continue in full force and effect notwithstanding Executive's termination of employment hereunder or the termination of this Agreement, respectively.

*[Remainder of Page Intentionally Left Blank]*

**IN WITNESS WHEREOF,** the parties hereto have caused this Executive Employment Agreement to be duly executed and delivered as of the date first above written.

---

| | |
|:---|:---|
| **EXECUTIVE:** | **EXECUTIVE:** |
| By: | */s/ Robert J. Folkes* |
|  | Robret J. Folkes |
| By: | /*s/ John Lai* |
|  | John Lai |
|  | Chief Executive Officer and President |

---

**<u>FIRST AMENDMENT TO</u>**

**<u>EXECUTIVE EMPLOYMENT AGREEMENT</u>**

THIS FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (this "**Amendment**") is effective as of November 1, 2022, by and between PetVivo Holdings, Inc., a Nevada corporation (the "**Company**") and Robert J. Folkes (the "**Executive**" and together with the Company, each a **"Party**,**"** and collectively the **"Parties.**")

<u>RECITALS</u>

**WHEREAS**, the Parties entered into that certain Executive Employment Agreement dated as of November 10, 2021 (as the same now exists or may hereafter be amended, modified, supplemented, renewed, restated, or replaced, the "**Employment Agreement**"); and

**WHEREAS**, pursuant to Section 3.1 of the Employment Agreement, the Compensation Committee of the Board of Directors of the Company conducted its annual performance and compensation review of the Executive and approved an increase to Executive's Base Salary.

**WHEREAS**, the Parties desire to modify the Employment Agreement to reflect the salary increase as set forth herein.

**NOW, THEREFORE**, in consideration of the premises, the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

<u>AGREEMENT</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used herein and not defined herein shall have the meaning ascribed to such term as set forth in the Employment Agreement, and all references to Sections, shall mean the Sections of the Employment Agreement unless reference is made to another document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendment to Employment Agreement</u>. Section 3.1 of the Employment Agreement is hereby amended such that the Executive's Base Salary is increased from $240,000 to $300,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Full Force and Effect</u>. Except as specifically amended, modified, or supplemented by this Amendment, the Employment Agreement, as amended, shall remain unchanged and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Governing Law</u>. The Parties expressly agree that (a) this Amendment shall be governed by, and construed in accordance with, the laws of the State of Minnesota, without giving effect to any conflict-of-law principles and (b) Section 8.2 of the Employment Agreement shall apply to any dispute hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Counterparts</u>. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature) or other commonly recognized transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[Signature Page Follows]

**IN WITNESS WHEREOF**, the parties have executed this Amendment as of the date first written above.

---

| | |
|:---|:---|
| **EXECUTIVE:** | **EXECUTIVE:** |
| By: | */s/ Robert J. Folkes* |
|  | Robret J. Folkes |
| By: | /*s/ John Lai* |
|  | John Lai |
|  | Chief Executive Officer |

---

## Exhibit 10.3

**Exhibit 10.3**

**<u>FIRST AMENDMENT TO</u>**

**<u>EXECUTIVE EMPLOYMENT AGREEMENT</u>**

THIS FIRST AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT (this "**Amendment**") is effective as of November 1, 2022, by and between PetVivo Holdings, Inc., a Nevada corporation (the "**Company**") and Randall Meyer (the "**Executive**" and together with the Company, each a **"Party**,**"** and collectively the **"Parties.**")

<u>RECITALS</u>

**WHEREAS**, the Parties entered into that certain Executive Employment Agreement dated as of November 10, 2021 (as the same now exists or may hereafter be amended, modified, supplemented, renewed, restated, or replaced, the "**Employment Agreement**"); and

**WHEREAS**, pursuant to Section 3.1 of the Employment Agreement, the Compensation Committee of the Board of Directors of the Company conducted its annual performance and compensation review of the Executive and approved an increase to Executive's Base Salary.

**WHEREAS**, the Parties desire to modify the Employment Agreement to reflect the salary increase as set forth herein.

**NOW, THEREFORE**, in consideration of the premises, the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

<u>AGREEMENT</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used herein and not defined herein shall have the meaning ascribed to such term as set forth in the Employment Agreement, and all references to Sections, shall mean the Sections of the Employment Agreement unless reference is made to another document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendment to Employment Agreement</u>. Section 3.1 of the Employment Agreement is hereby amended such that the Executive's Base Salary is increased from $220,000 to $270,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Full Force and Effect</u>. Except as specifically amended, modified, or supplemented by this Amendment, the Employment Agreement, as amended, shall remain unchanged and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Governing Law</u>. The Parties expressly agree that (a) this Amendment shall be governed by, and construed in accordance with, the laws of the State of Minnesota, without giving effect to any conflict-of-law principles and (b) Section 8.2 of the Employment Agreement shall apply to any dispute hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Counterparts</u>. This Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature) or other commonly recognized transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

[Signature Page Follows]

**IN WITNESS WHEREOF**, the parties have executed this Amendment as of the date first written above.

**EXECUTIVE:**

---

| | |
|:---|:---|
| By: | */s/ Randall Meyer* |
|  | Randall Meyer<br>|

---

By: <u>/*s/ John Lai*</u> <br> John Lai <br> Chief Executive Officer

## Exhibit 10.10

**Exhibit 10.11**

LEASE AGREEMENT

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| ARTICLE 1 GRANTING CLAUSE | 3.0 |
| ARTICLE 2 ACCEPTANCE OF PREMISES AND TENANT IMPROVEMENT ALLOWANCE | 4.0 |
| ARTICLE 3 USE | 5.0 |
| ARTICLE 4 RENT | 6.0 |
| ARTICLE 5 SECURITY DEPOSIT | 9.0 |
| ARTICLE 6 LATE CHARGE AND INTEREST | 9.0 |
| ARTICLE 7 UTILITIES | 10.0 |
| ARTICLE 8 REPAIRS AND MAINTENANCE | 10.0 |
| ARTICLE 9 ALTERATIONS | 12.0 |
| ARTICLE 10 INSURANCE | 13.0 |
| ARTICLE 11 ASSIGNMENT AND SUBLETTING BY TENANT | 13.0 |
| ARTICLE 12 DEFAULT | 15.0 |
| ARTICLE 13 LIMITATION OF LIABILITY AND DEFAULT OF LANDLORD | 16.0 |
| ARTICLE 14 DAMAGE AND DESTRUCTION | 17.0 |
| ARTICLE 15 CONDEMNATION | 18.0 |
| ARTICLE 16 INSPECTION | 18.0 |
| ARTICLE 17 RESERVED | 19.0 |
| ARTICLE 18 LIENS | 19.0 |
| ARTICLE 19 SUBORDINATION | 19.0 |
| ARTICLE 20 ESTOPPEL CERTIFICATES | 19.0 |

---

---

| | |
|:---|:---|
| ARTICLE 21 QUIET ENJOYMENT | 19.0 |
| ARTICLE 22 SURRENDER/HOLDOVER | 20.0 |
| ARTICLE 23 HOLD HARMLESS AND INDEMNIFICATION | 21.0 |
| ARTICLE 24 SIGNS | 22.0 |
| ARTICLE 25 PARKING | 22.0 |
| ARTICLE 26 POLICIES AND REGULATIONS | 22.0 |
| ARTICLE 27 RESERVED | 23.0 |
| ARTICLE 28 HAZARDOUS MATERIALS | 23.0 |
| ARTICLE 29 SECURITY SERVICE/ALARMS | 23.0 |
| ARTICLE 30 BROKERAGE | 24.0 |
| ARTICLE 31 NOTICES | 24.0 |
| ARTICLE 32 FORCE MAJEURE | 25.0 |
| ARTICLE 33 PATRIOT ACT COMPLIANCE | 25.0 |
| ARTICLE 34 SHARED DOCK AREA | 26.0 |
| ARTICLE 35 OPTION TO RENEW | 26.0 |
| ARTICLE 36 MISCELLANEOUS | 27.0 |
| ARTICLE 37 RIGHT OF FIRST OFFER | 28.0 |

---

This Lease Agreement ("Lease") dated as of this 10th day of January, 2023, by and between DEWEY AL L.L.C., a Minnesota limited liability company, and DEWEY MS L.L.C., a Minnesota limited liability company, as tenants in common (collectively, "Landlord"), and PETVIVO HOLDINGS, INC., a Nevada corporation ("Tenant").

WHEREAS, in consideration of the Rent hereinafter defined, and the covenants contained herein, Landlord and Tenant hereby agree as follows:

ARTICLE 1

GRANTING CLAUSE

In consideration of the obligation of Tenant to pay Rent, as herein provided, and in consideration of and subject to the terms, covenants and conditions hereof, Landlord leases to Tenant and Tenant takes from Landlord, that certain space depicted on Exhibit A-1 attached hereto and incorporated herein by reference consisting of approximately 3,794 rentable square feet office plus 9,348 rentable square feet of warehouse, and 931 rentable square feet of shared dock area, totaling 14,073 rentable square feet (the "Premises"), commonly known as Suite D in that certain building having an address of 5555 West 78th Street, Edina, Minnesota and consisting of 73,399 rentable square feet (the "Building") on that certain land legally described on Exhibit A-2 attached hereto and incorporated herein by reference (the "Property"), to have and to hold for a period of 123 months (10 years, 3 months) commencing April 1, 2023 (the "Commencement Date") and expiring June 30, 2033 (the "Lease Term"). Promptly after the Commencement Date, Landlord and Tenant shall execute a written statement confirming the Commencement Date and Lease Term (the "Lease Confirmation Certificate"), but the enforceability of this Lease shall not be affected should either party fail or refuse to execute such Lease Confirmation Certificate. Tenant shall also have the non-exclusive right to use in common with other parties those areas of the Property including the parking areas, grounds, common restrooms, corridors, doorways and entrances (collectively, the "Common Areas"). Notwithstanding the foregoing provisions to the contrary, the Commencement Date set forth above is subject to Tenant having access to the Premises for the purpose of completing the Tenant Improvements (as defined below) to the office portion of the Premises by not later than February 1, 2023, and to the remainder of the Premises by not later than March 1, 2023. Should Tenant's access be delayed past the dates set forth in the foregoing sentence and if Tenant is unable to complete the Tenant Improvements by April 1, 2023, then the Commencement Date shall be extended on a day for day basis equal to the number of days after the applicable date on which access to the applicable portion of the Premises was provided, or to the date that Tenant commences normal business operations at the Premises, whichever is earlier. Tenant shall have the right to access the Premises prior to the Commencement Date for the sole purpose of completing the Tenant Improvements; such access shall be without payment of Rent, but otherwise subject to the terms and conditions of this Lease. Upon completion of final plans for the Premises and determination of the respective actual rentable areas of the office and warehouse portions of the Premises, Landlord and Tenant shall confirm in writing such actual areas, provided that in no event shall such determination be deemed to increase or decrease the total rentable area of the Premises above 14,073 rentable square feet or to increase or decrease the Rent payable under this Lease.

ARTICLE 2

ACCEPTANCE OF PREMISES AND TENANT IMPROVEMENT ALLOWANCE

(a) Tenant accepts the Premises in its current "AS-IS," "WHERE-IS" and "WITH ALL FAULTS" condition subject to Landlord's obligations under Article 2 (b) of this Lease and subject to Tenant's inspection prior to taking possession of the Premises . Landlord has made no representation or warranty as to the suitability of the Premises for the conduct of Tenant's business or that the Premises is in compliance with Legal Requirements that may be applicable to Tenant's use and occupancy, and Tenant waives any implied warranty that the Premises is suitable for Tenant's intended purposes. Except as otherwise expressly provided in this Lease, in no event shall Landlord have any obligation to cure, or liability for, any defects in the Premises or any limitation on its use. The taking of possession of the Premises shall be conclusive evidence that Tenant accepts the Premises as provided herein.

(b) An initial rendering of Tenant's proposed improvements to the Premises is attached hereto as Exhibit B and by this reference incorporated herein (the "Initial Plans"). The Initial Plans have been approved by each of Landlord and Tenant. The parties acknowledge that the Initial Plans are to modify the Premises to accommodate Tenant's intended use. Tenant shall promptly provide any more detailed plans promptly after receipt of the same. Landlord shall be responsible for constructing the portion of the improvements described in Exhibit B-2 as being performed by Landlord (hereafter called "Landlord Work") for and on behalf of Tenant. Tenant shall be responsible for constructing and paying for all other improvements shown on the Initial Plans, including the improvements described in Exhibit B-2 as being performed by Tenant ("Tenant Work"). Landlord and Tenant agree that the Landlord will provide a Tenant Improvement Allowance of $10 per square foot or $37,940, plus $25,000 for office and warehouse modifications. The allowance may be used for architectural fees, SAC & WAC charges, if any, signage, up to twenty (20) keys in addition to standard Premises locks and keys provided by Landlord, and Tenant Work. The allowance may not be used for any Furniture, Fixtures and Equipment. The Tenant Improvement Allowance shall be paid to Tenant within thirty (30) days after (i)Tenant completes the Tenant Work and requests such payment and (ii) Tenant provides Landlord with properly executed lien waivers from each of the contractors and subcontractors performing work on the Premises. All such work performed by Tenant and its contractors shall be done in a good and workmanlike manner using quality materials and shall comply with all applicable governmental laws, ordinances, rules, and regulations. Tenant agrees to indemnify and hold Landlord free and harmless from any liability, loss, cost, damage or expense (including attorney's fees) by reason of any of such Alterations. Prior to commencing any of the Tenant Work, Tenant shall provide to Landlord a full set of any architectural and engineering plans obtained by Tenant for the work to be performed, a sworn construction statement for Tenant's general contractor detaining the categories of the work to be completed, the contractor or subcontractor who will provide such work and an itemization of the cost of the work. If, within forty-five (45) days after the last to occur of completion of the Tenant Work and submission of a request for payment and properly executed lien waivers as described above, Landlord has not remitted to payment of the Tenant Improvement Allowance (or such lesser portion thereof for which Tenant has provided the required documentation as described above), Tenant may withhold payments of Base Rent and Additional Rent otherwise accruing under this Lease in an amount equal to the amount of the Tenant Improvement Allowance for which Tenant has provided a written request in compliance with the provisions above.

ARTICLE 3

USE

(a) During the Lease Term and subject to applicable Legal Requirements, Tenant shall be entitled to access the Premises 24 hours per day, seven days per week, 365 days per year, subject to Force Majeure events. The Premises shall be used only for office, warehouse, clean room (production and testing), and quality control (the "Permitted Use") and shall not be used for any other purpose. Landlord, in Landlord's sole and absolute discretion, shall have the right to deny its consent to any change in the Permitted Use. Tenant shall not conduct or give notice of any auction, liquidation or going out of business sale on the Premises. Tenant will use the Premises in a careful, safe and proper manner and will not subject the Premises to use that would damage the Premises, reasonable wear and tear excepted. Tenant shall not permit any objectionable or unpleasant odors, smoke, dust, gas, noise, vibrations, rodents, insects or pests to emanate from the Premises, nor take any other action which would constitute a nuisance or which would disturb, endanger or unreasonably interfere with any other tenants of the Building or Property.

(b) Overnight parking, outside storage, including, without limitation, storage of trucks and other vehicles (other than normal parking by Tenant's employees and invitees), are prohibited without Landlord's prior written consent.

(c) Tenant shall obtain, at Tenant's sole cost and expense, any and all licenses and permits necessary for Tenant's use of the Premises. Tenant shall use and occupy the Premises in compliance with all existing and future Legal Requirements (hereinafter defined) applicable to the Premises, as well as all requirements of Landlord's insurance carrier and lender, if any. If any Legal Requirements shall, by reason of the nature of Tenant's particular use or occupancy of the Premises (a "Tenant-Related Reason"), impose any duty upon Tenant or Landlord with respect to: (i) modification or other maintenance of the Premises or the Property or (ii) the use, alteration or occupancy thereof, Tenant shall comply with such Legal Requirements at Tenant's sole cost and expense. The term "Legal Requirements" shall mean all of the following: covenants and restrictions, laws, statutes, building and zoning codes, judgments, ordinances, governmental orders, conditions of approval, permits, licenses, rules, and regulations (including, but not limited to, Title III of the Americans With Disabilities Act of 1990), as the same may be amended and supplemented from time to time, including, without limitation, all legal requirements that pertain to the Property. Subject to Tenant's obligations hereunder, Landlord agrees to maintain the Property in compliance with all applicable Legal Requirements as required by the applicable governing authority. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be required to make, or reimburse Landlord for, any capital expenditures to comply with Legal Requirements unless the same are necessitated due to Tenant's particular use of the Premises or are otherwise reimbursable to Landlord pursuant to the express terms of this Lease, and provided further that Tenant shall be responsible for the cost of any improvements to the Premises to the extent required to be made due to any changes to Title III of the Americans With Disabilities Act of 1990 enacted after the date of this Lease, but if such improvement is of a nature that it would be required of any commercial use of the Premises (as opposed to being required due to Tenant's particular use of the Premises), then Tenant shall only be responsible for the portion of the cost of such improvement, amortized over the useful life of the improvement, accruing during the remaining term of this Lease).

ARTICLE 4

RENT

Tenant shall pay Base Rent and Additional Rent (hereinafter defined) (collectively referred to as "Rent") during the Lease Term, in advance, on the first day of each calendar month, or as otherwise set forth in this Lease, without notice, demand, setoff or deduction. In the event any Rent is due for a partial calendar month or year, the Rent shall be prorated to reflect that portion of the Lease Term within such month or year. The obligation to pay accrued but unpaid Rent shall survive the expiration or earlier termination of the Lease. The obligation of Tenant to pay Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations. The first full monthly installment of Base Rent shall be payable upon Tenant's execution of this Lease.

(a) Base Rent. Tenant shall pay to Landlord, as Base Rent, the amounts identified below. (THE BASE RENT MONTHLY AND PERIOD CHARGES SEEM TO BE INCORRECT. SEE TABLE FROM PREVIOUS VERSION)

---

| | | | |
|:---|:---|:---|:---|
| Dates | Price per sq ft | Monthly | Period |
| 4.1.23-6.30.23 | ABATED | ABATED | 0.00 |
| 7.1.23-3.31.24 | $7.18 | $8420.35 | $75783.11 |
| 4.1.24-3.31.25 | $7.36 | $8631.44 | $103577.28 |
| 4.1.25-3.31.26 | $7.54 | $8842.54 | $106110.42 |
| 4.1.26-3.31.27 | $7.73 | $9065.36 | $108784.29 |
| 4.1.27-3.31.28 | $7.93 | $9299.91 | $111598.89 |
| 4.1.28-3.31.29 | $8.12 | $9522.73 | $114272.76 |
| 4.1.29-3.31.30 | $8.33 | $9769.01 | $117228.09 |
| 4.1.30-3.31.31 | $8.54 | $10015.29 | $120183.42 |
| 4.1.31-3.31.32 | $8.75 | $10261.56 | $123138.75 |
| 4.1.32-3.31.33 | $8.97 | $10519.57 | $126234.81 |
| 4.1.33-6.30.33 | $9.19 | $10577.57 | $32332.72 |

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(b) Additional Rent. "Additional Rent" shall be Tenant's share of Building Operating Expenses, Taxes, and any other amounts due and payable under the terms and conditions of this Lease. Tenant's proportionate share is estimated to be 19.1733% of total building square footage. During each full or partial calendar year during the Term of this Lease, Tenant shall pay to Landlord, as Additional Rental, an amount equal to the Real Estate Taxes and Building Operating Expenses (both as hereafter defined) per square foot of rentable area in the Building multiplied by the number of square feet of rentable area in the Premises prorated for the period that Tenant occupied the Premises. In the event that during all or any portion of any calendar year, the Building is not fully rented and occupied Landlord may make any appropriate adjustment in occupancy-related Building Operating Expenses (which for the purposes of this Lease shall be limited to management fees and utilities) for such year for the purpose of avoiding distortion of the amount of such Building Operating Expenses to be attributed to Tenant by reason of variation in total occupancy of the Building, by determining on a commercially reasonable basis the Building Operating Expenses that would have been paid or incurred by Landlord had the Building been ninety-five percent (95%) rented and occupied, and the amount so determined shall be deemed to have been Building Operating Expenses for such year

(i) Landlord shall, each year during the Term of this Lease, give Tenant an estimate of Building Operating Expenses and Real Estate Taxes payable per square foot of rentable area for the coming calendar year. Tenant shall pay, as Additional Rental, along with its monthly Base Rent payments required hereunder, one-twelfth (1/12) of such estimated Building Operating Expenses and Real Estate Taxes and such Additional Rental shall be payable until subsequently adjusted for the following year pursuant to this Article. The 2022 estimated Operating Expense (CAM) expense is $2.38 and the estimated Real Estate Taxes are $2.94.

(ii) As soon as possible after the expiration of each calendar year, Landlord shall determine and certify to Tenant the actual Building Operating Expenses and Real Estate Taxes for the previous year per square foot of rentable area in the Building and the amount applicable to the Premises. If such statement shows that Tenant's share of Building Operating Expenses and Real Estate Taxes exceeds Tenant's estimated monthly payments for the previous calendar year, then Tenant shall, within thirty (30) days after receiving Landlord's certification, pay such deficiency to Landlord. In the event of an overpayment by Tenant, such overpayment shall be refunded to Tenant, at the time of certification, in the form of an adjustment in the Additional Rental next coming due, or if at the end of the Term by a refund.

(iii) For the purposes of this Article, the term "Real Estate Taxes" means the total of all taxes, fees, charges and assessments, general and special, ordinary and extraordinary, foreseen or unforeseen, which become due or payable against or upon the Building, the parcel(s) of land upon which it is located or Landlord. All costs and expenses incurred by Landlord during negotiations for or contests of the amount of Real Estate Taxes shall be included within the term "Real Estate Taxes." For purposes of this Article, the term "Building Operating Expenses" shall be deemed to mean all costs and expenses directly related to the Building incurred by Landlord in the repair, operation, management and maintenance of the Building including interior and exterior and Common Area maintenance, management fees, cleaning expenses, energy expenses, insurance premiums, and the amortization of capital improvements made to reduce operating costs or necessary or due to governmental requirements or requirements of the insurer under any insurance policy carried on the Building by Landlord, in each case only to the extent that such requirements are imposed after the date of this Lease, maintenance and service charges for services provided by Landlord or its affiliate, all as determined on a commercially reasonable basis by Landlord.

(iv) Notwithstanding anything to the contrary contained in this Lease, Building Operating Expenses and Real Estate Taxes shall not include: the cost of capital improvements, unless such capital improvements are necessary to reduce operating costs or are necessary or due to governmental requirements or requirements of the insurer under any insurance policy carried on the Building by Landlord, in each case only to the extent that such requirements are imposed after the date of this Lease (in which case, the portion of the cost of any such improvement, amortized over the useful life thereof, incurred in any applicable year during the term of this Lease, shall constitute an Operating Expense for which Tenant shall be responsible for its proportionate share); depreciation; principal payments of mortgage and other non-operating debts of Landlord; the cost of repairs or other work to the extent Landlord is reimbursed by insurance or condemnation proceeds; costs in connection with marketing and leasing space in the Building, including brokerage commissions; lease concessions, rental abatements and construction allowances granted to specific tenants; costs incurred in connection with the sale, financing or refinancing of the Property; fines, interest and penalties incurred due to the late payment of Building Operating Expenses or Real Estate Taxes; organizational expenses associated with the creation and operation of the entity which constitutes Landlord; any penalties or damages that Landlord pays to Tenant under the Lease or to other tenants in the Building under their respective leases; overhead and profit increment paid to subsidiaries or other affiliates of Landlord for services (including management services and the fees paid in connection therewith) on or to the Building or Property to the extent only that the costs of such services exceed the competitive cost for such services rendered by persons or entities of similar skill, competence and experience; or property management fees in excess of 3% of Base Rents and Additional Rents for the Building; any federal or state tax imposed on or measured by the income of Landlord from the operation of the Building or Property; any capital levy, franchise, capital stock, gift, estate or inheritance tax; any personal property taxes of Landlord or other tenants (other than taxes levied for property that is owned by Landlord and used exclusively in connection with the operation, maintenance and repair of the Building); all expenses for which Landlord has received reimbursements from other tenants at the Building or for which Landlord will be reimbursed from another source; costs of alterations or improvements of the leased premises of any other tenant in the Building; the cost of correcting defects in the original construction of the Building; costs, including, without limitation, penalties or fines imposed upon Landlord or any portion of the Building due to violation of any Laws or failure to timely pay obligations by Landlord or any other tenant or occupant; bad debt loss or rent loss; expenses for repairs occasioned by casualty loss to the extent such expense was required to be covered by insurance required to be maintained by Landlord under this Lease; expenses and costs associated with services provided to any tenant of the Building with separate charge, to the extent not provided to Tenant or for which Tenant is separately charged; costs for electricity or other utility services for which any tenant directly contracts with the local public service company, or which are otherwise charged directly to individual tenants (including Tenant) and costs of other services charged directly to individual tenants (including Tenant); labor and employee benefit costs for employees above the grade of property manager; rentals for equipment ordinarily considered to be of a capital nature; charges for services or materials provided by affiliates of Landlord to the extent in excess of customary charges for the same by landlords of similar buildings in the suburban Minneapolis market; dues paid to trade associations and similar expenses if there is no direct benefit to the tenants of the Building; the cost of removing hazardous substances in order to comply with legal requirements unless such hazardous substances were brought to the Property by Tenant or generated by Tenant; Landlord's general corporate overhead and general administrative expenses not related to the operation of the Building; the cost of any political or charitable donations; the cost of purchasing, installing and replacing art work in the Building; increases in premiums for insurance carried by Landlord pursuant to this Lease, which increase is caused by use of the Building or Property by Landlord or any other tenant of Landlord which is hazardous on account of fire or otherwise or premiums for any insurance carried by Landlord which is not customarily carried by other reasonably prudent landlords in comparable office building in the suburban Minneapolis market; repair costs or penalties resulting from the gross negligence of Landlord, its agents, employees, contractors and/or other parties within the reasonable control of Landlord; to the extent any costs includable in Building Operating Expenses are incurred with respect to both the Building or Property and other properties (including, without limitation, salaries, fringe benefits and other compensation of Landlord's personnel who provide such services to both the Building or Property and other properties), there shall be excluded from Building Operating Expenses a fair and reasonable percentage thereof which is properly allocable to such other properties; the cost of any separate electrical meter Landlord may provide to any of the tenants in the Building; costs relating to withdrawal liability or unfunded pension liability under the Multi-Employer Pension Plan act or similar law; rent on any ground lease; and duplications of charges otherwise expressly provided to be paid by Tenant under this Lease. Further, in no event shall Landlord be entitled to a reimbursement for Building Operating Expenses in excess of 100% of the costs actually paid or incurred by Landlord in any applicable calendar year.

(v) Landlord may at any time designate a fiscal year in lieu of a calendar year and in such event, at the time of such a change, there may be a billing for the fiscal year, which is less than 12 calendar months.

(vi) Landlord reserves, and Tenant hereby assigns to Landlord, the sole and exclusive right to contest, protest, petition for review, or otherwise seek a reduction in the Real Estate Taxes.

(vii) Tenant shall have the right from time to time (but not more than once in any 12 month period) to examine books and records relating to Building Operating Expenses and Real Estate Taxes for a period of four (4) months following Tenant's receipt of Landlord's annual certification thereof as described in subsection (ii) above. Such examinations shall be performed at Landlord's offices during normal business hours and on reasonable prior written notice to Landlord. Such examinations shall be performed by direct employees of Tenant and/or certified public accountant. In the event said examination discloses an overpayment by Tenant, Landlord shall credit Tenant's account in the amount of any overpayment disclosed. In the event Tenant's examination reveals that the payment of Tenant's Pro Rata Share of Building Operating Expenses or Real Estate Taxes was understated, Tenant shall pay such understated amount to Landlord as Additional Rent within thirty (30) days of the audit and shall pay for the cost of the audit. For the purposes of this Article 4, normal business hours shall be deemed to mean the period of time between 8:00 a.m. and 5:00 p.m., Monday through Friday, and specifically excluding Saturdays, Sundays and legal holidays.

(viii) The terms and provisions of this Paragraph 4 shall survive the expiration or earlier termination of this Lease.

ARTICLE 5

SECURITY DEPOSIT

Upon the execution hereof, Tenant agrees to pay Landlord the sum of $14,660.00 (the "Security Deposit") to guarantee the payment of Base Rent and Additional Rent and the performance by Tenant of all the terms of this Lease. Such amount held as a Security Deposit shall bear no interest. Upon the occurrence of any default hereunder by Tenant, Landlord may use said Security Deposit to the extent necessary to cure such default, whether rent or otherwise. Any remaining balance of said Security Deposit shall be returned to Tenant upon compliance with the terms hereof and within forty-five (45) days after acceptance of the vacated Premises by Landlord in accordance with this Lease. Tenant understands that its potential liability under this Lease is not limited to the amount of the Security Deposit. Use of such Security Deposit by Landlord shall not constitute a waiver but is in addition to other remedies available to Landlord under this Lease and under law. Upon the use of all or any part of the Security Deposit to cure any default of Tenant, Tenant shall forthwith deposit with Landlord the amount of Security Deposit so used within 10 days after the date of Landlord's written notice. Tenant will not be entitled to any interest on the Security Deposit, unless required by law.

ARTICLE 6

LATE CHARGE AND INTEREST

Tenant acknowledges and agrees that in the event any monthly installment of Rent is not paid by the fifth (5th) day of the month when due, Tenant shall be assessed a one-time late charge equal to ten percent (10%) of such delinquent sum. The provision for such late charge shall be in addition to all of Landlord's other rights and remedies hereunder or at law and shall not be construed as a penalty.

ARTICLE 7

UTILITIES

(a) Landlord agrees to furnish sewer and water services. Gas and electrical services to the Premises are separately metered and payment for such services shall be made by Tenant directly to the provider thereof. Any upgrade or modification to utility services required by Tenant during the term of this Lease shall be made at Tenant's expense.

(b) No temporary interruption or failure of such services incidental to the making of repairs, alterations or improvements, or due to accidents, strike, conditions, or events not under Landlord's control, shall be deemed as an eviction of the Tenant or relieve the Tenant from any of the Tenant's obligations hereunder, provided that if any utility interruption is within Landlord's control and is not caused by the act or omission of Tenant, if such interruption continues for more than five (5) consecutive business days, Rent shall abate from the sixth (6th) business day of such interruption until such service is restored.

(c) Reserved.

(d) Tenant shall pay when due all charges for such services furnished to the Premises during the Term or any renewal or extension thereof.

(e) Tenant shall remove the trash from its premises or provide its own dumpster for trash and recycling and store the dumpster outside in the dock area of the Building at all times, in an area designated by Landlord, and Tenant shall be responsible for the removal of such trash. Tenant shall not leave or store any materials or trash on the grounds or Parking Area and shall not litter the grounds or Parking Area. If Landlord makes a trash room or area available to Tenant in the Building, Tenant shall dispose of its trash in said room or area if so requested by Landlord.

ARTICLE 8

REPAIRS AND MAINTENANCE

(a) Landlord, subject to inclusion in Building Operating Expenses, shall maintain and repair in good condition, and replace, if necessary, the structural elements of the Building (including, without limitation, structural portions of the roof, foundation and exterior walls of the Building), excluding reasonable wear and tear, uninsured losses and damages caused by Tenant and/or Tenant Parties (hereinafter defined). For purposes of this Paragraph, the term "exterior walls" shall not include windows, plate glass, office doors, dock doors, dock bumpers, office entries or any exterior improvement made by Tenant. Any structural repair or replacement to any part of the Property resulting from damage caused by Tenant and/or Tenant Parties shall be performed by Landlord, at Tenant's sole cost and expense, which shall be payable upon demand.

(b) In addition to Landlord's obligations as set forth above, Landlord shall also maintain in good repair and condition the Common Areas, and provide for pest control, snow and ice removal on or about the Property, except Tenant is responsible for all areas leading to parking areas from the building which includes all entrances, steps, sidewalks and ramps between snow removal occurrences. All costs incurred by Landlord in connection with the obligations in the preceding sentence shall be included in Building Operating Expenses and paid by Tenant in accordance with Paragraph 4 above. Notwithstanding anything contained herein to the contrary, Tenant shall be responsible for maintaining in good condition and repair all vestibules and doorway entrances. Landlord shall not be responsible for janitorial service to the Premises, vestibules or restrooms.

(c) Tenant, at Tenant's sole cost and expense, shall, at all times during the Lease Term and in accordance with all applicable Legal Requirements, maintain, service, repair and replace, if necessary, and keep in good condition and repair all portions of the Premises which are not expressly the responsibility of Landlord under this Lease (excluding reasonable wear and tear and casualty), including, but not limited to, fixtures, equipment and appurtenances thereto, any windows, plate glass, office doors, dock doors and ancillary equipment, office entries, interior walls and finish work, floors and floor coverings, water heaters, electrical systems and fixtures, dock bumpers, dock levelers, trailer lights and fans, shelters/seals and restraints, branch plumbing and fixtures up to points of common connection and pest extermination. Tenant further agrees not to obstruct entries, halls, stairways or other Common Areas nor use the same for anything other than their intended purpose, to provide and use carpet protector mats in all locations within the office areas where chairs with casters are used and that the use of the Premises, Parking Area and the Common Areas shall be subject to such reasonable policies and regulations as may be promulgated by Landlord for the comfort and convenience of the owners, occupants and visitors of the Building. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be required to make, or reimburse Landlord for, any capital improvements to comply with Legal Requirements unless the same are necessitated due to Tenant's particular use of the Premises or are otherwise reimbursable to Landlord pursuant to the express terms of this Lease, and provided further that Tenant shall be responsible for the cost of any improvements to the Premises to the extent required to be made due to any changes to Title III of the Americans With Disabilities Act of 1990 enacted after the date of this Lease, but if such improvement is of a nature that it would be required of any commercial use of the Premises (as opposed to being required due to Tenant's particular use of the Premises), then Tenant shall only be responsible for the portion of the cost of such improvement, amortized over the useful life of the improvement, accruing during the remaining term of this Lease).

(d) Tenant shall bear the full cost (other than for available insurance proceeds, if any) of any non-structural repair or non-structural replacement to any part of the Property resulting from damage caused by Tenant and/or Tenant Parties, which such repair or replacement shall be performed by Landlord at Tenant's sole cost and expense (other than for available insurance proceeds, if any), which shall be paid within thirty (30) days after demand.

(e) Tenant shall perform all repairs and maintenance by a contractor approved by Landlord, in a good and workmanlike manner, using new materials of the same character, kind and quality as originally employed in, on or about the Property; and all such repairs and maintenance shall be in compliance with all applicable Legal Requirements, as well as all requirements of Landlord's insurance carrier and lender, if any. In the event Tenant fails to properly perform any such repairs or maintenance within a reasonable period of time, Landlord, after thirty (30) days' prior written notice to Tenant except in case of emergency, shall have the option to perform such repairs on behalf of Tenant, in which event Tenant shall reimburse Landlord, as Additional Rent, the costs thereof within thirty (30) days after receipt of Landlord's invoice for same.

(f) Tenant shall, at its own expense and in accordance with the requirements of Article 9 below, install, maintain and repair a rooftop heating, ventilation, and air conditioning (HVAC) unit and related ductwork and equipment that serves any clean rooms maintained by Tenant at the Premises (the "New HVAC Unit"), as well as an emergency back-up power source (the "Back-up Power Source"). Landlord shall have no obligation to maintain a regularly scheduled preventive maintenance/service contract ("Preventative Maintenance Agreement") for servicing the New HVAC Unit and shall not be responsible for any maintenance, repairs or replacement of such unit.

(g) Landlord, on behalf of Tenant, at Tenant's sole cost and expense, may enter into a Preventative Maintenance Agreement for servicing the five (5) ton HVAC unit to be relocated by Tenant at its expense over the warehouse area of the Premises in accordance with Exhibit B-2 (the "Relocated HVAC Unit") as well as any other HVAC units exclusively serving the Premises (other than the New HVAC Unit), Such Preventative Maintenance Agreement entered into by Landlord may include, without limitation, all services suggested or recommended by the equipment manufacturer in the operation and maintenance of such system. Landlord shall perform all repairs and maintenance necessary for the Relocated HVAC Unit as well as any other HVAC units serving the Premises (other than the New HVAC Unit). Tenant shall reimburse Landlord, as an Operating Expense, Tenant's proportionate share of all of Landlord's costs in connection with the Preventative Maintenance Agreement, which amount shall be considered Additional Rent hereunder. Tenant shall reimburse Landlord directly for Landlord's actual costs of repair and maintenance of the Relocated HVAC Unit as well as other HVAC units exclusively serving the Premises (other than the New HVAC Unit). Tenant will pay the cost of utilities for all heating, air conditioning and ventilation service provided to the Premises. Landlord shall replace, as necessary, any HVAC units exclusively serving the Premises (other than the New HVAC Unit), provided that in connection with any necessary replacement of such HVAC unit during the Term, Tenant will only be charged for the actual costs in monthly installments amortized over the useful economic life of such unit, together with interest at 5% per annum during each calendar year or portion thereof remaining in the Term. Notwithstanding anything to the contrary contained in this Lease, with respect to the Relocated HVAC Unit, for the first one (1) year following the Commencement Date, in no event shall Tenant be responsible for repair or other charges with respect to the same in excess of One Thousand and 00/100 Dollars ($1,000.00) except to the extent that any repair charges result from damage caused by Tenant, its agents or contractors in relocating and reinstalling said unit.

ARTICLE 9

ALTERATIONS

Tenant will not make any alterations, repairs, additions or improvements in or to the Premises (the foregoing being the "Alterations") or add, disturb or in any way change any plumbing, wiring, life/safety or mechanical systems, locks, or structural portions of the Building without the prior written consent of the Landlord as to the character of the Alterations, the manner of doing the Alterations, and the contractor(s) doing the Alterations. Such consent shall not be unreasonably withheld, conditioned or delayed so long as such Alterations do not materially affect the Building structure, roof or mechanical, plumbing, electrical or HVAC systems. As a condition to Landlord's consent to Alterations proposed by Tenant, the anticipated cost of which exceeds $50,000.00, Landlord may impose such conditions with respect thereto as Landlord deems appropriate, including, without limitation, requiring Tenant to furnish surety performance and/or payment bonds or other security for the payment of all costs incurred in connection with such Alterations, insurance against liabilities that may arise out of such Alterations, plans and specifications approved by Landlord and permits necessary for such Alterations, and any such Alterations shall performed by contractors recommended by or approved by Landlord (such approval not to be unreasonably withheld, conditioned or delayed). If such Alterations are performed by contractor(s) not retained by Landlord, Tenant shall, upon completion of such Alterations, deliver to Landlord evidence that payment for all such Alterations has been made by Tenant including mechanic's lien waivers from all contractors and subcontractors. All such Alterations shall be done in a good and workmanlike manner using quality materials and shall comply with all applicable governmental laws, ordinances, rules, and regulations. Tenant agrees to indemnify and hold Landlord free and harmless from any liability, loss, cost, damage or expense (including attorney's fees) by reason of any of such Alterations. Tenant shall pay the reasonable cost of modifications, if any, to the Building outside of the Premises required to accommodate any Alteration, provided that Landlord notifies Tenant in writing at the time of consenting to such Alteration as to the need for and estimated cost of any such modifications. If at the time Landlord consents to any Alteration Landlord notifies Tenant in writing that Landlord requires the removal of any such Alteration upon termination of this Lease, Tenant will remove the same upon termination of this Lease and repair any damages made from installation or removal of the Alterations to original condition or better. All other Alterations will remain Landlord's property upon termination of this Lease and will be relinquished to Landlord in good condition, ordinary wear and tear, casualty or condemnation excepted. Notwithstanding the foregoing provisions to the contrary, Tenant shall have the right, at Tenant's sole cost and expense, to remove the New HVAC Unit and the Back-up Power Source at the end of the Lease Term or any renewal thereof, provided that Tenant shall repair, at Tenant's sole cost and expense, any damage to the roof and Building caused by such removal. If Tenant elects not to remove the New HVAC Unit, than prior to the date of expiration or other termination of this Lease it shall provide Landlord with copies of any repair and maintenance records Tenant has received for the New HVAC Unit.

ARTICLE 10

INSURANCE

(a) Tenant will keep in force at its own expense for so long as this Lease remains in effect public liability insurance with respect to the Premises in which Landlord and any agent of Landlord identified to Tenant shall be named as an additional insured, in companies and in form acceptable to Landlord with a minimum combined limit of liability of Four Million Dollars ($4,000,000.00). This limit shall apply per location. Said insurance shall also provide for contractual liability coverage by endorsement. Tenant will further deposit with Landlord the policy or policies of such insurance or certificates thereof, or other acceptable evidence that such insurance is in effect, which evidence shall provide that Landlord shall be notified in writing thirty (30) days prior to cancellation, material change, or failure to renew the insurance. If Tenant shall not comply with its covenants made in this Article, Landlord may, at its option, cause insurance as aforesaid to be issued and in such event Tenant agrees to pay the premium for such insurance promptly upon Landlord's demand.

(b) Landlord shall maintain "all risk" or "special form" property insurance covering the full replacement cost of the Property (including, without limitation, the improvements, equipment and building systems located thereon), but expressly excluding any Alterations, Tenant's personal property. Landlord may, but is not obligated to, maintain such other insurance and additional coverages customary for owners of comparable buildings in the southwest suburban Minneapolis area as it may reasonably deem necessary. The cost of all such insurance shall be included as part of the Building Operating Expenses charged to Tenant as set forth in Paragraph 4. Tenant shall not do anything that would make void or voidable any insurance on the Premises or Property, and Tenant shall be responsible for paying to Landlord any increase in such insurance attributable solely to Tenant's use or occupancy.

(c) All property insurance policies required to be maintained by Landlord and Tenant shall include a waiver of subrogation in favor of Landlord Parties or Tenant Parties, as the case may be. If any policy requires an endorsement to provide for waiver of subrogation, the applicable party shall cause the policy to be so endorsed. Landlord and Tenant, in the exercise of their commercial business judgment, acknowledge that the use of insurance is the best way to protect against the risk of loss to their respective properties and economic interests in the Property and the Premises. Accordingly, each agree that in the event of loss or damage to their respective properties or interests, such loss will be satisfied first by the insurance proceeds paid to the party suffering the loss, next by the additional insurance proceeds that would have been paid to the party suffering the loss had the insurance required hereunder been carried by such party, and finally, by the party causing the loss or damage. Without limiting any required waiver of subrogation herein, if and to the extent that applicable law permits a full waiver of claims between landlords and tenants in leases such as this Lease, then Landlord and Tenant waive all claims against the other as well as any of its affiliates, parent and subsidiaries, and their respective trustees, directors, officers, members, managers, venturers, partners, shareholders, agents, contractors, representatives, lenders, assignees, affiliates and employees of the other for any loss, damage or injury, notwithstanding the negligence of either party in causing a loss or the availability of insurance proceeds.

ARTICLE 11

ASSIGNMENT AND SUBLETTING BY TENANT

(a) Landlord's Consent Required.

(i) No portion of the Premises or of Tenant's interest in this Lease may be transferred by Tenant, whether by sale, assignment, mortgage, sublease, transfer, operation of law, or act of Tenant, without Landlord's prior written consent, which shall not be unreasonably withheld, conditioned or delayed. Any attempted transfer without consent shall be void and shall constitute a non-curable breach of this Lease. If Tenant is a partnership, any cumulative transfer of more than twenty percent (20%) of the partnership interests shall require Landlord's prior written consent. If Tenant is a corporation, any change in the ownership of a controlling interest of the voting stock of the corporation shall require Landlord's prior written consent, unless such ownership interests are publicly traded. Any assignee shall become liable directly to Landlord for all obligations of Tenant hereunder.

(ii) Any assignment of the Lease or subletting of the Premises shall be subject to an administrative fee in the amount of Five Hundred and No/100 Dollars ($500.00), in addition to any reasonable legal fees, due and payable by Tenant to Landlord as a condition to the granting of Landlord's consent as required hereunder.

(iii) Notwithstanding the foregoing provisions to the contrary, Tenant may assign or otherwise transfer this Lease, or any part thereof, or any interest hereunder, and may sublet or permit the use of the Premises, or any part thereof, without the prior written consent of Landlord, to: (i) any parent, subsidiary, affiliate, division or corporation controlled by or under common control of Tenant, or (ii) a successor entity related to Tenant by reorganization, merger, consolidation or the sale of all or substantially all of the capital stock or assets of Tenant (or any other transaction substantially similar in effect) (any transfer in described in clause (i) or (ii) above, a "Permitted Transfer"), provided that: (A) in the event of a transfer described in clause (i) above Tenant shall not be released from any of its obligations under this Lease;and (B) in the event of a transfer described in clause (i or ii) above, any successor entity has a net worth not less than the net worth of Tenant immediately prior to such transfer and (C) Landlord is notified in writing of such transfer prior to the transfer being made.

(b) No Release. No assignment of the Lease or subletting of the Premises under this Paragraph , with or without Landlord's consent, shall release Tenant or change Tenant's primary liability to pay the Rent and to perform all other obligations of Tenant under this Lease. Landlord's acceptance of Rent from any other person is not a waiver of any provisions of this Paragraph. Consent to one assignment or subletting is not a consent to any subsequent assignment or subletting. If Tenant's assignee is in breach of this Lease, Landlord may proceed directly against Tenant without pursuing remedies against the assignee. Landlord may consent to subsequent assignments or modifications of this Lease by Tenant's assignee, without notifying Tenant or obtaining its consent. Such action shall not relieve Tenant's liability under this Lease. In addition, as used in this Paragraph, the term "Tenant" shall also mean any entity that has guaranteed Tenant's obligations under this Lease, and the restrictions applicable to Tenant contained herein shall also be applicable to such guarantor.

(c) Recapture Right. In the event of any proposed subletting or assignment (other than as permitted in subparagraph 11(a) (iii) above), Landlord shall have the option, in Landlord's sole and absolute discretion, to terminate this Lease, or in the case of a proposed subletting of less than the entire Premises (other than as permitted in subparagraph 11(a) (iii) above), to recapture the portion of the Premises to be sublet, as of the date the subletting or assignment is to be effective. The option shall be exercised by Landlord giving Tenant written notice within thirty (30) days following Landlord's receipt of Tenant's written notice as required above. If this Lease shall be terminated with respect to the entire Premises, the Lease Term shall end on the date stated in Tenant's notice as the effective date of the sublease or assignment as if that date had been originally fixed in this Lease for the expiration of the Lease Term. If Landlord recaptures only a portion of the Premises, the Base Rent during the unexpired Lease Term shall abate proportionately based on the Base Rent due as of the date immediately prior to such recapture and Tenant's Pro Rata Share shall be adjusted appropriately.

(d) Excess Rent/Consideration. In the event that the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment, plus any bonus or other consideration therefore or incident thereto) exceeds the Rent payable under this Lease, then Tenant shall be bound and obligated to pay Landlord, as Additional Rent hereunder, one-half of all such excess Rent and other excess consideration (after deduction for reasonable expenses associated with such sublease or assignment, including legal and brokerage fees, advertising charges, and rent credits or other inducements actually incurred by Tenant) within ten (10) days following receipt thereof by Tenant.

(e) Collection of Rent. If this Lease is assigned or if the Premises is sublet (whether in whole or in part), or in the event of the mortgage, pledge or hypothecation of Tenant's leasehold interest, or grant of any concession or license related to the Premises, or if the Premises is occupied in whole or in part by anyone other than Tenant, then upon a breach by Tenant hereunder Landlord may collect Rent from the assignee, sublessee, mortgagee, pledgee, party to whom the leasehold interest was hypothecated, concessionee, licensee or other occupant and, except to the extent set forth in the preceding paragraph, apply the amount collected to the next Rent payable hereunder; and all such Rent collected by Tenant shall be held in deposit for Landlord and immediately forwarded to Landlord. No such transaction or collection of Rent or application thereof by Landlord, however, shall be deemed a waiver of these provisions or a release of Tenant from the further performance by Tenant of its covenants, duties or obligations hereunder.

ARTICLE 12

DEFAULT

If any one or more of the following occurs: (1) Base Rent, Additional Rent or other payment due from Tenant to Landlord shall be and remain unpaid in whole or in part for more than five (5) days after such payment is due; (2) Tenant shall violate or default on any of the other covenants, agreements, stipulations or conditions herein, or in any parking agreement(s) or other agreements between Landlord and Tenant relating to the Premises, and such violation or default shall continue for a period of thirty (30) days after written notice from Landlord of such violation or default, provided that if the nature of the default reasonably requires more than thirty (30) days to cure, Tenant shall have such additional time as is reasonably necessary provided that Tenant commences cure within thirty (30) days of written notice from Landlord and thereafter diligently prosecutes the same to completion; (3) if Tenant shall commence or have commenced against Tenant proceedings under a bankruptcy, receivership, insolvency or similar type of action; or (4) if Tenant shall abandon the Premises (provided that Tenant shall not be deemed to have abandoned the Premises if it continues to pay Rent and perform its other obligations under this Lease, and takes reasonable steps to monitor and secure the Premises); then it shall be optional for Landlord, without further notice or demand, to cure such default or to declare this Lease forfeited and the said Term ended, or to terminate only Tenant's right to possession of the Premises, and to re-enter the Premises, with or without process of law, using such force as may be necessary to remove all persons or chattels therefrom, and Landlord shall not be liable for damages by reason of such re-entry or forfeiture; but notwithstanding re-entry by Landlord or termination only of Tenant's right to possession of the Premises, the liability of Tenant for the rent and all other sums provided herein shall not be relinquished or extinguished for the balance of the Term of this Lease and Landlord shall be entitled to periodically sue Tenant for all sums due under this Lease or which become due prior to judgment, but such suit shall not bar subsequent suits for any further sums coming due thereafter. Tenant shall be responsible for, in addition to the rentals and other sums agreed to be paid hereunder, the cost of any necessary maintenance, repair, restoration, reletting (including related cost of removal or modification of tenant improvements) or cure as well as reasonable attorney's fees incurred or awarded in any suit or action instituted by Landlord to enforce the provisions of this Lease, regain possession of the Premises, or the collection of the rentals due Landlord hereunder. If Tenant is in breach of any provision of this Lease, other than for the payment of Rent, Landlord may (but shall not be obligated to) cure such breach on behalf of Tenant, at Tenant's sole cost and expense. Further, Landlord may (but shall not be obligated to) perform any obligation of Tenant, without notice to Tenant, should Landlord deem the performance of same to be an emergency or otherwise necessary to comply with Legal Requirements. Any monies expended by Landlord to cure any such breach or resolve any deemed emergency shall be payable by Tenant as Additional Rent. If Landlord incurs any expense, including reasonable attorneys' fees, in prosecuting and/or defending any action or proceeding by reason of any emergency or breach, Tenant shall reimburse Landlord for same, as Additional Rent, within thirty (30) days following receipt of Landlord's written demand thereof. Each right or remedy of Landlord provided for in this Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Lease now or hereafter existing at law or in equity or by statute or otherwise.

ARTICLE 13

LIMITATION OF LIABILITY AND DEFAULT OF LANDLORD

(a) Landlord shall not be in default of any obligation of Landlord hereunder unless Landlord fails to perform such obligations within thirty (30) days after receipt of written notice of such failure from Tenant; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for its performance, Landlord shall not be in default if Landlord commences to cure such default within the thirty (30) day period and thereafter diligently prosecutes the same to completion. All obligations of Landlord hereunder shall be construed as covenants, not conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate this Lease for breach of Landlord's obligations hereunder.

(b) The term "Landlord" in this Lease shall mean only the then current owner of the Property; and in the event of a sale or conveyance by such owner of its interest in the Property, such owner shall be released from any and all liability under this Lease thereafter accruing.

(c) Any liability of Landlord shall be limited solely to Landlord's interest in the Property, and in no event shall any personal liability be asserted against any or all of Landlord Parties in connection with this Lease nor shall any recourse be had to any other property or assets of any or all of Landlord Parties.

(d) Tenant's sole and exclusive remedy for a default or breach of this Lease by Landlord shall be either (i) an action for damages, or (ii) an action for injunctive relief; Tenant hereby waiving and agreeing that Tenant shall have no other remedies on account of any breach or default by Landlord under this Lease including, without limitation, any offset rights. Under no circumstances whatsoever shall Landlord ever be liable for punitive, consequential or special damages under this Lease; and Tenant waives any rights it may have to such damages under this Lease in the event of a breach or default by Landlord under this Lease.

ARTICLE 14

DAMAGE AND DESTRUCTION

(a) Tenant will notify Landlord promptly after Tenant learns of any fire, casualty, damage to or defect in the Premises or Building which was caused by Tenant, its contractors, employees, licensees or invitees or for the repair of which Landlord might be responsible. If fifty percent (50%) or more of the rentable area of the Building is damaged or destroyed by fire or other casualty, the Landlord shall have the right to terminate this Lease, provided it gives written notice thereof to the Tenant within ninety (90) days after such damage or destruction. If (i) the above-described portion of the Building is damaged by fire or other casualty, and Landlord does not elect to terminate this Lease, or (ii) if less than the above-described portion of the Building is so damaged or destroyed, then the Landlord shall, at its expense, restore the Premises to as near the condition which existed immediately prior to such damage or destruction, as reasonably possible, and the rentals shall abate during such period of time as the Premises are untenantable, in the proportion that the untenantable portion of the Premises bears to the entire Premises. In addition, if the Premises is damaged in whole or in part during the last twelve (12) months of the Term of this Lease, such damage is not caused by Tenant or its invitees and is not suitable, in Tenant's reasonable opinion, for the conduct of Tenant's business, then Tenant may terminate this Lease by giving Landlord notice within forty-five (45) days of the occurrence of such casualty. Notwithstanding anything contained herein to the contrary, Landlord will not be required to spend more for such repair and restoration than the insurance proceeds available to the Landlord as a result of the fire or other casualty. To the extent Tenant is responsible for insuring leasehold improvements, furniture, equipment or Tenant's inventory and stock-in-trade, Tenant agrees, promptly upon notice from Landlord that Landlord is repairing the Premises or the Building, to file such claims and pursue such repairs to the Premises in order to rebuild the Premises, including all such leasehold improvements, furniture and equipment and to reopen Tenant's business within 20 days after the completion of Landlord's repairs. In the event the Landlord has not completed restoration of the premises within one hundred eighty (180) days from the date of casualty (subject to delay due to weather conditions, shortages of labor or materials or other reasons beyond Landlord's reasonable control, Tenant may, so long as such delay is not caused in whole or primarily by Tenant, terminate this Lease by written notice to Landlord within thirty (30) days following the expiration of such 180 day period (as extended for reasons beyond Landlords control as provided above) unless, within thirty (30) days following receipt of such notice, Landlord has substantially completed such restoration and delivered the premises to Tenant for occupancy. Notwithstanding anything to the contrary herein, in the event Tenant is responsible for the damage or destruction provided for in this Article 14, Tenant shall not have the right to terminate this Lease if Landlord is willing to rebuild and restore the Premises.

(b) In no event will Landlord be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting in any way from damage cause by fire or other casualty or the repair of such damage, provided however that, to the extent Tenant remains in possession of a portion of the Premises, Landlord will take all reasonable steps to minimize the disruption to Tenant's business and use of such portion of the Premises during the period of repair.

ARTICLE 15

CONDEMNATION

If the whole or any material part of the Property or the Premises shall be taken in condemnation, or transferred by agreement in lieu of condemnation, which in Tenant's reasonable judgment, materially and adversely affects Tenant's Permitted Use of the Premises, or in Landlord's reasonable judgment, materially interferes with or impairs its ownership or operation of the Property, then either Tenant or Landlord may terminate this Lease by serving the other party with written notice of same, effective as of the taking date. If neither Tenant nor Landlord elects to terminate this Lease as aforesaid, then this Lease shall terminate on the taking date only as to that portion of the Premises so taken, and the Rent and other charges payable by Tenant shall be reduced proportionally. Landlord shall be entitled to, and Tenant hereby assigns to Landlord any interests it might have in, the entire condemnation award for all realty and improvements and the value of Tenant's leasehold interest. Tenant shall, to the extent available from the condemning authority and separately awarded to Tenant but only to the extent that same shall not diminish Landlord's award, be entitled to an award for Alterations, trade fixtures, Tenant's personal property, and reasonable moving expenses only, provided Tenant independently petitions the condemning authority for same. Notwithstanding the aforesaid, if any condemnation only takes a portion of the parking area and the remaining portion of the parking area is sufficient to provide Tenant, in Tenant's reasonable opinion, with adequate parking, this Lease shall continue in full force and effect without modification.

ARTICLE 16

INSPECTION

Upon no less than 24 hours prior written notice to Tenant (except in the event of an emergency when no such notice shall be necessary), Landlord shall have the right to enter and inspect the Premises at any reasonable time to ascertain the condition of the Premises or to make such repairs as may be required or permitted to be made by Landlord under the terms of this Lease; provided, however, Landlord shall use commercially reasonable efforts to minimize any disruption to Tenant's business in the Premises during such entry by Landlord, and provided further that any clean rooms in the Premises are secure areas to which Landlord shall not have access unless accompanied by a designated representative of Tenant except in the event of an emergency when no prior notice shall be necessary provided that Landlord shall promptly thereafter notify Tenant of such entry. In addition, thereto, during the last nine (9) months of the Lease Term, Landlord shall have the right to enter the Premises at any reasonable time to show the Premises to prospective tenants, and during said nine (9) months, Landlord shall have the right to erect on the Property suitable signs indicating that the Premises is available for lease. Landlord shall retain sole control over the Common Areas and public parts of the Property, and shall have the right at any time, without the same constituting any actual or constructive eviction and without incurring any liability to Tenant therefor, to change the arrangement and/or location of Common Areas and public parts of the Property.

ARTICLE 17

RESERVED

ARTICLE 18

LIENS

In the event any lien shall at any time be filed against the Premises or any part of the Building by reason of work, labor, services or materials performed or furnished to Tenant or to anyone holding the Premises through or under Tenant or to secure any portion of the Premises for payment of any debt, Tenant shall forthwith cause the same to be discharged of record. If Tenant shall fail to cause such lien forthwith to be discharged within thirty (30) days after being notified of the filing thereof, then, in addition to any other right or remedy of Landlord, Landlord may, but shall not be obligated to, discharge the same by paying the amount claimed to be due, or by bonding, and the amount so paid by Landlord and all costs and expenses, including reasonable attorney's fees incurred by Landlord in procuring the discharge of such lien, shall be due and payable in full by Tenant to Landlord on demand.

ARTICLE 19

SUBORDINATION

Tenant agrees that this Lease shall be subordinate to any mortgage(s) that may now or hereafter be placed upon the Building or any part thereof, and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, replacements, and extensions thereof, provided the mortgagee named in any such mortgage shall agree to recognize this Lease and not disturb Tenant's rights hereunder in the event of foreclosure provided the Tenant is not in default beyond any applicable cure period. This subordination and non-disturbance shall be self-operative and no further certificate or instrument of subordination need be required by any such mortgagee. In confirmation of such subordination and non-disturbance, however, Tenant shall promptly execute and deliver any instrument, in recordable form, as reasonably required by Landlord's Mortgagee and is consistent with the provisions of this Article 19. In the event of any mortgagee electing to have the Lease a prior encumbrance to its mortgage, then and in such event upon such mortgagee notifying Tenant to that effect, this Lease shall be deemed prior in encumbrance to the said mortgage, whether this Lease is dated prior to or subsequent to the date of said mortgage.

ARTICLE 20

ESTOPPEL CERTIFICATES

Each party hereto agrees that at any time, and from time to time during the Term of this Lease (but not more often than twice in each calendar year), within twenty (20) days after request by the other party hereto, it will execute, acknowledge and deliver to such other party or to any prospective purchaser, assignee or mortgagee designated by such other party, an estoppel certificate in a customary form reasonably acceptable to Landlord. Tenant agrees to provide Landlord (but not more often than twice in any calendar year), within twenty (20) days of request, the then most current publicly available financial statements of Tenant and any guarantors of this Lease, and if available, shall be audited and certified by a certified public accountant. Landlord shall keep such financial statements confidential, except Landlord shall, in confidence, be entitled to disclose such financial statements to existing or prospective mortgagees or purchasers of the Building.

ARTICLE 21

QUIET ENJOYMENT

So long as Tenant is not then in default under this Lease beyond any applicable cure period, Tenant shall, subject to the terms of this Lease, have peaceful and quiet enjoyment of the Premises against any person claiming by, through or under Landlord.

ARTICLE 22

SURRENDER/HOLDOVER

(a) Upon the expiration or earlier termination of the Lease, Tenant shall surrender the Premises to Landlord in the same condition as received, broom clean (excluding reasonable wear and tear, casualty and condemnation). Tenant may remove trade fixtures, including kitchen cabinets, countertop, sink, faucet, attached to the Property. In addition, Tenant shall have the right to remove Tenant's office demountable partitions, manufacturing and production equipment, water system, laboratory dish washers, clean room improvements, and any HVAC system installed by Tenant except the five (5) ton unit relocated by Tenant as provided for herein. Tenant will pay Landlord on within thirty (30) days after demand the cost of repairing any damage to the Premises or building caused by installation and/or removal of any such items. Any Alterations, trade fixtures and Tenant's personal property that are not removed by Tenant, as permitted or required herein, shall be deemed abandoned and may be stored, removed, and/or disposed of by Landlord at Tenant's sole cost and expense; and Tenant waives all claims against Landlord for any damages resulting from Landlord's retention and/or disposition of such items. All obligations of Landlord or Tenant hereunder not fully performed as of the termination of the Lease shall survive such termination, including, without limitation, indemnity obligations, payment obligations, and obligations concerning the condition and repair of the Premises.

(b) If Tenant retains possession of the Premises after the expiration or earlier termination of the Lease, unless otherwise agreed in writing, such possession shall be subject to immediate termination by Landlord at any time, and all obligations of Tenant under this Lease shall be applicable during such holdover period, except that the Base Rent payable by Tenant during such holdover period (regardless of whether or not Landlord has consented to such holdover) shall be an amount equal to one hundred fifty percent (150%) of the Base Rent payable during the last full calendar month of the Lease Term prior to any such holdover, computed on a per diem basis during such holdover period. All other payments shall continue under the terms of this Lease. In addition, Tenant shall be liable for all damages incurred by Landlord as a result of such holding over. No holding over by Tenant, unless otherwise agreed in writing, shall be construed as consent for Tenant to retain possession of the Premises.

(c) After Tenant takes sole possession of the Premises, Tenant is responsible, at its sole cost and expense, for removing any person or entity, authorized or unauthorized by Tenant, from the Premises who may have been on the Premises after Tenant takes such possession and prior to the expiration or earlier termination of the Lease and continues to occupy any portion of the Premises thereafter. Failure to remove such person or entity from the Premises upon the expiration or earlier termination of the Lease constitutes a holdover and Tenant is authorized to act as Landlord's agent for the limited purpose of removal of such occupant, even if such removal occurs after the expiration or earlier termination of the Lease.

ARTICLE 23

HOLD HARMLESS AND INDEMNIFICATION

(a) Except in the event of, and to the extent of, Landlord's negligence, willful misconduct or breach of this Lease, Tenant hereby indemnifies, defends, and holds Landlord and Landlord Parties (hereinafter defined) harmless from and against any and all Losses (hereinafter defined) arising from or in connection with any negligent or willful act or omission of any or all of Tenant, its affiliates, parents, subsidiaries, and their respective trustees, directors, shareholders, partners, members, managers, venturers, officers, employees, agents, invitees, assignees, sublessees, contractors, or representatives (collectively, "Tenant Parties"). Tenant also indemnifies, defends, and holds the Landlord Parties harmless from and against any and all Losses arising from or in connection with any or all of: (x) any breach by Tenant of any or all of its warranties, representations and covenants under this Lease; (y) the creation or existence of any Hazardous Materials in, at, on or under the Premises or the Property, if and to the extent brought to the Premises or the Property or caused by any or all of Tenant and Tenant Parties; and (z) any violation or alleged violation by any or all of Tenant and Tenant Parties of any Legal Requirement. The obligations of Tenant in the two prior sentences are referred to collectively as "Tenant's Indemnified Matters." In case any action or proceeding is brought against any or all of the Landlord Parties by reason of any of Tenant's Indemnified Matters, Tenant, upon notice from Landlord, shall resist and defend such action or proceeding by counsel reasonably satisfactory to, or selected by, Landlord. The term "Losses" shall mean all claims, demands, expenses, actions, judgments, damages (actual, but except in connection with third party tort claims, not indirect, special, consequential, or punitive), penalties, fines, liabilities, losses of every kind and nature, suits, administrative proceedings, costs, and fees, including, without limitation, reasonable attorneys' and consultants' fees and expenses, and the costs of cleanup, remediation, removal, and restoration that are in any way related to any matter covered by the foregoing indemnity.

(b) Except in the event of, and to the extent of, Tenant's negligence, willful misconduct or breach of this Lease, Landlord hereby indemnifies, defends, and holds Tenant and Tenant Parties (hereinafter defined) harmless from and against any and all Losses arising from or in connection with any negligent or willful act or omission of any or all of Landlord, its affiliates, parents, subsidiaries, and their respective trustees, directors, shareholders, partners, members, managers, venturers, officers, employees, agents, invitees, assignees, sublessees, contractors, or representatives (collectively, "Landlord Parties"). Landlord also indemnifies, defends, and holds the Tenant Parties harmless from and against any and all Losses arising from or in connection with any or all of: (x) any breach by Landlord of any or all of its warranties, representations and covenants under this Lease; (y) the creation or existence of any Hazardous Materials in, at, on or under the Premises or the Property, if and to the extent brought to the Premises or the Property or caused by any or all of Landlord and Landlord Parties; and (z) any violation or alleged violation by any or all of Landlord and Landlord Parties of any Legal Requirement. The obligations of Landlord in the two prior sentences are referred to collectively as "Landlord's Indemnified Matters." In case any action or proceeding is brought against any or all of the Tenant Parties by reason of any of Landlord's Indemnified Matters, Landlord, upon notice from Tenant, shall resist and defend such action or proceeding by counsel reasonably satisfactory to, or selected by, Tenant.

(c) The terms of this Article 24 shall survive the expiration or earlier termination of this Lease.

ARTICLE 24

SIGNS

No signs or other advertising materials shall be erected, attached or affixed to any portion of the interior or exterior of the Premises or the Building without the express prior written consent of Landlord. Tenant agrees that the only Tenant signage permitted on or in any part of the Premises and visible from the exterior of the Premises shall be Landlord's standard building signage, approved and installed by Landlord at Tenant's expense. Tenant agrees to maintain its signage in good repair, and to hold Landlord harmless from any loss, cost, or damages resulting from the erection, existence, maintenance, or removal of the signage. Landlord may upon 24 hours' prior notice enter the Premises at any time and, at the expense of Tenant, remove unauthorized signs without liability for damages. Landlord may replace or maintain any signage at the Premises or Building and the cost of such replacement or maintenance shall be the obligation of Tenant payable on demand.

ARTICLE 25

PARKING

Tenant shall be entitled to park in common with other tenants of the Property in those areas designated for non-reserved parking. In no event shall Landlord grant reserved or other preferential parking rights to any tenants or other occupants such that total non-reserved parking available to Tenant is equal to less than 2.3 parking spaces per 1,000 rentable square feet of leased space. Tenant shall be responsible for all vehicles owned, rented or used by Tenant and/or Tenant Parties in or about the Property and agrees not to use or permit the use of overnight storage of any motor vehicles or trailers on the property. Tenant shall not park or store any motor vehicles or trailers within the Premises. Upon request by Landlord, Tenant shall move its trucks and vehicles if, in Landlord's reasonable opinion, said vehicles are in violation of any of the above restrictions.

ARTICLE 26

POLICIES AND REGULATIONS

Tenant shall, at all times during the Lease Term and any extension thereof, comply with all reasonable policies and regulations covering use of the Premises and the Property. Landlord may revise any such policies and regulations from time to time in Landlord's reasonable discretion, provided that any such policies and regulations are consistent with similar buildings in the southwest suburban Minneapolis area and are enforced uniformly and in a non-discriminatory manner. Landlord shall not have any liability or obligation for the breach of any policies or regulations by other tenants in the Property. In the event of any conflict between such policies and regulations and other provisions of this Lease, the provisions of this Lease shall control. Attached hereto and incorporated herein by reference as Exhibit B is the Landlord's current Policies and Regulations, which may be amended from time to time by Landlord.

ARTICLE 27

RESERVED

ARTICLE 28

HAZARDOUS MATERIALS

Except for Hazardous Materials contained in products used by Tenant in de minimis quantities for ordinary cleaning and office purposes, and except for de minimis quantities of gas, propane, fluids, or oil used in Tenant's equipment or forklifts as part of Tenant's normal business operations, including, but not limited to, the materials listed on Exhibit D attached hereto and incorporated herein by reference (collectively, "Permitted Materials"), Tenant shall not cause or permit any Hazardous Material to be generated, produced, brought upon, used, stored, treated, or disposed of in, on or about the Property by Tenant and/or Tenant Parties, without the prior written consent of Landlord. Landlord shall be entitled to take into account any factors or facts as Landlord may determine to be relevant to determining whether to grant or withhold consent to Tenant's proposed activity with respect to Hazardous Material. In no event, however, shall Landlord be required to consent to the installation or use of any storage tanks in, on or about the Property other than as described on Exhibit E attached hereto and incorporated herein by reference, subject to minor modifications from time to time by Tenant to conform to best treatment practices, as determined by Tenant. Tenant shall at all times comply with all applicable Legal Requirements relating to Hazardous Materials generated, brought upon, used, stored, treated or disposed of by Tenant in, on or about the Premises. Tenant, at Tenant's sole cost and expense, shall remediate in a manner satisfactory to Landlord, or any Legal Requirements, any Hazardous Materials released in, on or about the Property by Tenant and/or Tenant Parties. Tenant shall complete and certify to disclosure statements as requested by Landlord from time to time relating to Tenant's transportation, storage, use, generation, manufacture or release of Hazardous Materials on the Premises. Landlord shall at all times comply with all applicable Legal Requirements relating to Hazardous Materials generated, brought upon, used, stored, treated or disposed of by Landlord in, on or about the Property. Landlord, at Landlord's sole cost and expense, shall remediate in a manner satisfactory to Landlord, or any Legal Requirements, any Hazardous Materials released in, on or about the Property by Landlord and/or Landlord Parties. As defined in any applicable laws, Tenant is and shall be deemed to be the "operator" of Tenant's "facility" and the "owner" of all Hazardous Materials brought on the Premises by Tenant and/or Tenant Parties, the wastes, by-products or residues generated, resulting or produced therefrom. As used in the Lease, the term "Hazardous Materials" includes Permitted Materials and also means any flammable items, explosives, radioactive materials, hazardous or toxic substances, material, waste or related materials, including any substances defined as or included in the definition of "hazardous substance," "hazardous wastes," "hazardous material," or "toxic substances" now or subsequently regulated under any applicable federal, state, or local laws or regulations, including, without limitation, petroleum-based products, paints, solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs and similar compounds and including any different products and materials which are subsequently found to have adverse effects on the environment or the health and safety of persons. Each of the covenants and agreements of Tenant set forth in this Paragraph shall survive the expiration or earlier termination of this Lease.

ARTICLE 29

Tenant acknowledges and agrees that, while Landlord may patrol the exterior of the Building and the surrounding Property, Landlord is not providing any security services with respect to the Premises and that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any other damage suffered or incurred by Tenant in connection with any unauthorized entry into the Premises or any other breach of security with respect to the Premises. Tenant shall be permitted to install their own security system for the Premises after obtaining the prior written consent of Landlord for the equipment and manner of installation. Tenant shall be responsible for all costs and fees related to any security system, and Landlord shall be provided with all system access codes, passwords, instructions and emergency contact information, provided that Landlord shall give the Tenant not less than 24 hours prior notice of entry, except in case of emergency, in which case Landlord shall notify Tenant as promptly as reasonably possible thereafter, and provided further that any clean rooms in the Premises are secure areas to which Landlord shall not have access unless accompanied by a designated representative of Tenant except in the event of an emergency when no prior notice shall be necessary provided that Landlord shall promptly thereafter notify Tenant of such entry. Tenant shall remove all such security systems and installations, and repair any damage caused by such removal, upon surrender of the Premises and restore premises to original condition.

ARTICLE 30

BROKERAGE

Landlord and Tenant each warrant to the other that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, and that it knows of no other real estate broker or agent who is or might be entitled to a commission in connection with this Lease except for Avison Young and Bahno Commercial Real Estate, whose commissions shall be paid by Landlord. Landlord and Tenant each hereby agree to indemnify, defend and hold the other harmless from and against all claims for any brokerage commissions, finders' fees, or similar payments by any persons and all costs, expenses, and liabilities incurred in connection with such claims, including reasonable attorneys' fees and costs.

ARTICLE 31

NOTICES

All notices required to be given under this Lease shall be in writing and shall be deemed to have been received (i) upon delivery if delivered by hand, (ii) one day after deposit with a nationally recognized overnight courier service, or (iii) three business days after deposit in the United States mail, certified or registered, postage prepaid, return receipt requested. All notices shall be addressed to the parties hereto at their respective addresses set forth below. If any notice is refused, or if the party to whom any such notice is sent has relocated without leaving a forwarding address, then the notice shall be deemed to have been received on the date the notice-receipt is returned stating that the same was refused or is undeliverable at such address. Either party may designate a different notice address by giving notice of same to the other party in accordance with this Section.

Notice to Landlord: DEWEY MS LLC

DEWEY AL LLC

c/o Allied Parking, Inc.

800 South 9th Street

Minneapolis, MN 55404-1205

With copy to:

W Management, LLC

800 South Ninth Street

Minneapolis, MN 55404

Attn: Anne Snyder

Notice to Tenant: PETVIVO HOLDINGS, INC.

5555 West 78th Street, Suite D

Edina, MN 55439

Attn: Randy Meyer

With copy to:

PETVIVO HOLDINGS, INC.

5151 Edina Industrial Boulevard, Suite 575

Edina, MN 55439

Attn: Robert J. Folkes

ARTICLE 32

FORCE MAJEURE

Except for monetary obligations, in the event any obligation to be performed by either Landlord or Tenant is prevented or delayed due to strikes, lockouts, labor disputes, acts of God, inability to obtain labor or materials, governmental restrictions, governmental regulations, governmental controls, delay in issuance of permits, enemy or hostile governmental action, civil commotion, or other causes beyond the reasonable control of such party (each or collectively referred to herein as "Force Majeure"), the party liable to perform such obligation shall be excused from performing same for a period of time equal to any aforesaid delay.

ARTICLE 33

PATRIOT ACT COMPLIANCE

Tenant represents to Landlord that Tenant is not a person or entity described by Section 1 of the Executive Order (No. 13224) Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism, 66 Fed. Reg. 49,079 (September 24, 2001), and does not engage in any dealings or transactions, and is not otherwise associated, with any such persons or entities or any forbidden entity. A "forbidden entity" is defined as (a) the governments of Cuba, Iran, North Korea, Myanmar, Syria and Sudan (each, a "Prohibited Country") and any of their agencies, including but not limited to, political units and subdivisions (each, a "Prohibited Government"); (b) any company that (i) is wholly or partially managed or controlled by a Prohibited Government, (ii) is established, organized under or whose principal place of business is in any Prohibited Country, (iii) has failed to submit an affidavit following request therefor averring that it does not own or control any property or asset in and has not and does not transact business with any Prohibited Country; and (c) to Tenant's knowledge, any publicly traded company identified by an independent researcher specializing in global security as (i) owning or controlling property or assets or having employees or facilities located in, (ii) providing goods or services to or obtaining goods or services from, (iii) having distribution agreements with, issuing credits or loans to or purchasing bonds or commercial paper issued by, or (iv) investing in any Prohibited Country or any company domiciled in any Prohibited Country. For purposes of this Paragraph, a "company" is any entity whether publicly traded or privately owned capable of affecting commerce, including but not limited to, a government, government agency, natural person, legal person, sole proprietorship, partnership, firm, corporation, subsidiary, affiliate, franchisor, franchisee, joint venture, trade association, financial institution, utility, public franchise, provider of financial services, trust, or enterprise and any association thereof.

ARTICLE 34

SHARED DOCK AREA

Tenant will have use of the shared dock area as shown in Exhibit B. All tenants using the shared dock area will be responsible for cleaning, maintenance, and repairs of the dock area including levelers, hoods, bumpers, overhead doors, and any other items related to the shared dock area. All tenants using the shared dock area will be charged their proportionate share of repairs, maintenance, replacement, and improvement expenses made by the Landlord in accordance with the shared dock area with Tenant's proportionate share being seventy-five percent (75%). Landlord agrees to cooperate with Tenant and to enforce any indemnity or similar provisions in any lease of portions of the shared dock area with other tenants of the Property to the extent that Landlord and Tenant reasonably determine that any damage to the dock area was caused by such other user.

ARTICLE 35

OPTION TO RENEW

ill have a One-Time Option to Renew current space for five (5) years at the current market rent at that time by giving the Landlord six (6) month written notice prior to lease expiration. The space will be renewed "as is" and Landlord will not be required to provide Tenant Improvement Allowance. Co-Broker Fees will not be paid by Landlord if Tenant chooses to exercise Option. If Landlord and Tenant cannot agree on the market rent rate within 30 days after Tenant's receipt of Landlord's proposed market rent rate (it being agreed that both Landlord and Tenant will be reasonable in their attempt to determine the market rent rate), Tenant, by written notice to Landlord made within 5 business days after the expiration of such 30 day period, may cause said rate to be determined by arbitration in accordance with the following provisions, failing such timely notice Tenant's One-Time Option to Renew shall be null and void and of no force and effect: The determination of the market rent rate will be determined by an arbitration board consisting of three reputable real estate professionals with experience with similar buildings within the southwest suburban Minneapolis area. Within 20 days after initiation of arbitration, each party shall appoint one arbitrator who shall have no material financial or business interest in common with the party making the selection and shall not have been employed by such party for a period of three years prior to the date of selection. If a party fails to give notice of appointment of its arbitrator within the 20 day period provided above, then upon 5 business days' notice the other party may appoint the second arbitrator. The arbitrators selected by the parties shall attempt to agree upon a third arbitrator. If the first two arbitrators are unable to agree on a third arbitrator within 30 days after the appointment of the second arbitrator, then such third arbitrator shall be appointed by the presiding judge of the Hennepin County District Court, or by any person to whom such presiding judge formally delegates the matter or, if such methods of appointment fail, by the American Arbitration Association. Within 30 days of the appointment of the third arbitrator, Landlord, Tenant and the three arbitrators shall meet at the Premises, and in a proceeding held in accordance with the rules of the American Arbitration Association, Landlord and Tenant shall each submit to the arbitrators their proposals for the market rent rate and shall be allowed to present such evidence and testimony in support thereof as is allowed under the rules of the American Arbitration Association. The arbitrators shall be instructed that within 30 days after the date on which Landlord, Tenant and the arbitrators conclude such meeting, the arbitrators shall select one of the two proposed market rent rate figures, with no compromise or alternative market rent rate figures to be permitted. The market rent rate figure selected by a majority of the arbitrators shall be binding upon Landlord and Tenant. The decision of the arbitrators, determined as above set forth, will be final and non-appealable. Except where specifically provided otherwise in the Lease, each party shall bear its own expenses in connection with the arbitration and the costs of its arbitrator, and the cost of the third arbitrator shall be shared equally by Landlord and Tenant. The costs of all counsel, experts and other representatives that are retained by a party will be paid by such party.

ARTICLE 36

MISCELLANEOUS

(a) All exhibits attached hereto are hereby incorporated into this Lease and made a part hereof.

(b) All of the covenants of Landlord and Tenant hereunder shall be deemed and construed to be "conditions" as well as "covenants" as though both words were used in each separate instance.

(c) Except as otherwise expressly provided in this Lease, Landlord shall not unreasonably withhold, condition or delay any consent or approval required under this Lease.

(d) Neither this Lease, nor any memorandum thereof, shall be recorded in any public records by Tenant without the prior written consent of Landlord.

(e) The paragraph headings appearing in this Lease are inserted only as a matter of convenience, and in no way define or limit the scope of any paragraph.

(f) Submission of this Lease shall not be deemed to be an offer, an acceptance or a reservation of the Premises and Landlord shall not be bound hereby until Landlord has delivered to Tenant, or to Tenant's designated agent a fully executed copy of this Lease, signed by both of the parties in the spaces herein provided. Until such delivery, Landlord reserves the right to show and lease the Premises to other prospective tenants.

(g) All of the terms of this Lease shall extend to and be binding upon the parties hereto and their respective heirs, executors, administrators, successors, and assigns.

(h) This Lease and the parties' respective rights hereunder shall be governed by the laws of the State of Minnesota. In the event of litigation, suit shall be brought in the County of Hennepin, State of Minnesota. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, LANDLORD AND TENANT HEREBY WAIVE ANY AND ALL RIGHT TO A TRIAL BY JURY ON ANY ISSUE INVOLVING THIS LEASE.

(i) In the event of any legal action or proceeding brought by either party against the other arising out of this Lease, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs (including, without limitation, court costs and expert witness fees) incurred in such action. Such amounts shall be included in, but in addition to, any judgment rendered in any such action or proceeding.

(j) No waiver by either Landlord or Tenant of any provision of this Lease or of any breach by the other party hereunder shall be deemed to be a waiver of any other provision hereof, or of any subsequent breach by such party. Neither Landlord's nor Tenant's consent to or approval of any act by the other party requiring Landlord's or Tenant's consent or approval under this Lease shall not be deemed to render unnecessary the obtaining of Landlord's or Tenant's, as the case may be, consent to or approval of any subsequent act of the other party

(k) No act or thing done by Landlord or Landlord's agents during the Lease Term shall be deemed an acceptance of a surrender of the Premises, unless in writing signed by Landlord. The delivery of the keys to any employee or agent of Landlord shall not operate as a termination of the Lease or a surrender of the Premises. The acceptance of any Rent by Landlord following a breach of this Lease by Tenant shall not constitute a waiver by Landlord of such breach or any other breach unless such waiver is expressly stated in a writing signed by Landlord. No endorsement or statement on any check or payment, or on any letter accompanying any check or payment, shall be deemed an accord and satisfaction; and Landlord may accept any check or payment without prejudice to Landlord's right to recover any additional amount due or to pursue any other remedy in this Lease.

(l) In the event any provision of this Lease is invalid or unenforceable, the same shall not affect or impair the validity or enforceability of any other provision.

(m) In addition to all other amounts due in this Lease any amount not paid by Tenant within five (5) days after its due date in accordance with the terms of this Lease shall bear interest from such due date until paid in full at the lesser of the highest rate permitted by applicable law or ten percent (10%) per year. It is expressly the intent of Landlord and Tenant at all times to comply with applicable Legal Requirements governing the maximum rate or amount of any interest payable on or in connection with this Lease. If applicable Legal Requirements are ever judicially interpreted so as to render usurious any interest called for under this Lease, or contracted for, charged, taken, reserved, or received with respect to this Lease, then it is Landlord's and Tenant's express intent that all excess amounts theretofore collected by Landlord be credited on the applicable obligation (or, if the obligation has been or would thereby be paid in full, refunded to Tenant), and the provisions of this Lease immediately shall be deemed reformed and the amounts thereafter collectible hereunder reduced, without the necessity of the execution of any new document, so as to comply with the applicable Legal Requirements, but so as to permit the recovery of the fullest amount otherwise called for hereunder.

(n) Time is of the essence of this Lease and each and all of its provisions.

(o) Tenant hereby covenants and warrants that Tenant is a duly authorized and existing entity, that Tenant has and is qualified to do business in the state in which the Property is located, that the Tenant has full right and authority to enter into this Lease pursuant to the terms of its formation and that each person signing on behalf of Tenant is authorized to do so. Tenant shall provide Landlord on demand with such evidence of such authority as Landlord shall reasonably request, including, without limitation, resolutions, certificates, and opinions of counsel. Landlord hereby covenants and warrants that Landlord is a duly authorized and existing entity, that Landlord has and is qualified to do business in the state in which the Property is located, that the Landlord has full right and authority to enter into this Lease pursuant to the terms of its formation, and that each person signing on behalf of Landlord is authorized to do so. If and when included within the term "Tenant," as used in this instrument, there is more than one person, firm, or corporation, each shall be jointly and severally liable for the obligations of Tenant.

(p) This Agreement is the result of arms-length negotiations between Landlord and Tenant and their respective attorneys. Accordingly, neither party shall be deemed to be the author of this Lease and this Lease shall not be construed against either party.

(q) Upon Landlord's written request, Tenant shall promptly furnish Landlord, from time to time, with the most current annual and quarterly financial statements prepared in accordance with generally accepted accounting principles, certified by Tenant to be true and correct, and any other financial information or summaries that Tenant typically provides to its lenders or shareholders.

(r) This Lease may be executed in one or more counterparts, each of which will constitute an original, and all of which together shall constitute one and the same agreement. Executed copies hereof may be delivered by e-mail or facsimile and, upon receipt, shall be deemed originals and binding upon the parties hereto. Without limiting or otherwise affecting the validity of executed copies hereof that have been delivered by e-mail or facsimile, the parties will use best efforts to deliver originals as promptly as possible after execution.

(s) If and when included within the term "Landlord," as used in this instrument, there is more than one person, firm, limited liability company, or corporation, each shall be jointly and severally liable for the obligations of Landlord.

ARTICLE 37

RIGHT OF FIRST OFFER

(a) Tenant shall have a one-time right of first offer to lease Suite C or Suite E within the Building that becomes available during the initial Term of this Lease (the "Offer Space") subject to the terms and conditions of this Article (a "Right of First Offer").

(b) During the initial Term (the "ROFO Period") if Landlord believes that the Offer Space will become available for lease within the following six (6) months, Landlord shall provide Tenant a first opportunity to lease the Offer Space by providing a notice indicating the terms on which Landlord would be willing to lease the Offer Space ("Landlord's First Offer Notice"). Tenant shall have a period of twenty (20) days following receipt of Landlord's First Offer Notice to give Landlord notice that Tenant will lease the Offer Space on the identical terms and conditions set forth in Landlord's First Offer Notice. If Tenant responds affirmatively, then this Lease shall be amended to incorporate the terms included in Landlord's First Offer Notice and the term with respect to the Offer Space shall commence on the later of thirty (30) days after (i) the Offer Space becomes vacant; or (ii) Tenant's acceptance of Landlord's First Offer Notice. Landlord's First Offer Notice may only be accepted in whole, not in part. The term of the lease for any Offer Space shall be co-terminous with the term of this Lease (including any renewal option).

[SIGNATURES ARE ON THE FOLLOWING PAGE.]

HEREFORE, Landlord and Tenant have respectively executed this Lease as of the date set forth by their respective signatures as below written.

---

| | | | |
|:---|:---|:---|:---|
| LANDLORD: | LANDLORD: | TENANT: | TENANT: |
| Dewey AL L.L.C. and Dewey MS L.L.C. | Dewey AL L.L.C. and Dewey MS L.L.C. | Petvivo Holdings, Inc. | Petvivo Holdings, Inc. |
| By: | /s/ Gena Janetka | By: | /s/ John Lai |
| Name: | Gena Janetka | Name: | John Lai |
| Title: | Agent for Owner Dewey MS L.L.C. | Title: | CEO |
| Date: | 1/5/2023 | Date: | 1/10/2023<br>|

---

---

| | |
|:---|:---|
| By: | /s/ Joel Lavintman |
| Name: | Joel Lavintman |
| Title: | Agent for Owner Dewey AL L.L.C. |
| Date: | 1/4/2023 |

---

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Registration Statement (Form S-8 No. 333-265717) of PetVivo Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Registration Statement (Form S-8 No. 333-267931) of PetVivo Holdings, Inc.; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Registration Statement (Form S-3 No. 333-264700) of PetVivo Holdings, Inc.

of our report dated July 10, 2025, with respect to the consolidated financial statements of PetVivo Holdings, Inc., included in this Annual Report (Form 10-K) of PetVivo Holdings, Inc. for the year ended March 31, 2025.

/s/ Stephano Slack LLC

Wayne, Pennsylvania

July 10, 2025

## Exhibit 23.2

**Exhibit 23.2**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the following Registration Statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Registration Statement (Form S-8 No. 333-265717) of PetVivo Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Registration Statement (Form S-8 No. 333-267931) of PetVivo Holdings, Inc.; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Registration Statement (Form S-3 No. 333-264700) of PetVivo Holdings, Inc.

of our report dated June 28, 2024, with respect to the consolidated financial statements of PetVivo Holdings, Inc. and its subsidiaries, included in this Annual Report (Form 10-K) of PetVivo Holdings, Inc. for the year ended March 31, 2025.

/s*/ Assurance Dimensions LLC*

Coral Springs, Florida

July 10, 2025

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Principal Executive Officer**

**Required By Rule 13a-14(A) of the Securities Exchange Act of 1934, As Amended,** 

**As Adopted Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002**

I, John Lai, certify that:

1. I have reviewed
 this annual report on Form 10-K of PetVivo Holdings, Inc.;

2. Based on my knowledge,
 this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
 made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
 report;

3. Based on my knowledge,
 the financial statements, and other financial information included in this report, fairly present in all material respects the financial
 condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's
 other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
 in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
 and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such
 disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
 that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
 fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant
 deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
 likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal control over
 financial reporting.

---

| | | |
|:---|:---|:---|
| Date: July 10, 2025 | By: | */s/ John Lai* |
|  |  | John Lai |
|  |  | CEO, President, and Director |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Principal Financial Officer**

**Required By Rule 13a-14(A) of the Securities Exchange Act of 1934, As Amended,** 

**As Adopted Pursuant To Section 302 of the Sarbanes-Oxley Act of 2002**

I, Garry Lowenthal, certify that:

1. I have reviewed
 this annual report on Form 10-K of PetVivo Holdings, Inc.;

2. Based on my knowledge,
 this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
 made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
 report;

3. Based on my knowledge,
 the financial statements, and other financial information included in this report, fairly present in all material respects the financial
 condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's
 other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
 in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
 and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such
 disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
 that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within
 those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent
 fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is
 reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's
 other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the
 equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant
 deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
 likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal control over
 financial reporting.

---

| | | |
|:---|:---|:---|
| Date: July 10, 2025 | By: | */s/ Garry Lowenthal* |
|  |  | Garry Lowenthal |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to** 

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report of PetVivo Holdings, Inc. a Nevada corporation (the "Company") on Form 10- K for the year ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), John Lai, Principal Executive Officer of the Company, certifies to the best of his knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to§ 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The
 information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of
 the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

---

| | | |
|:---|:---|:---|
| Date: July 10, 2025 | By: | */s/ John Lai* |
|  |  | John Lai |
|  |  | CEO, President, and Director |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**Pursuant to 18 U.S.C. Section 1350, as Adopted** **Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Annual Report of PetVivo Holdings, Inc. a Nevada corporation (the "Company") on Form 10- K for the year ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Garry Lowenthal, Principal Financial Officer of the Company, certifies to the best of his knowledge, pursuant to 18 U.S.C. § 1350, as adopted pursuant to§ 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report
 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained
 in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

---

| | | |
|:---|:---|:---|
| Date: July 10, 2025 | By: | */s/ Garry Lowenthal* |
|  |  | Garry Lowenthal |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---