Financial Analysis

NOTE 11 COMMITMENTS AND CONTINGENCIES 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. The Company is not currently party to any material legal proceedings and is not aware of any material loss contingencies requiring accrual or disclosure as of March 31, 2026. Lease Obligations The Company leases 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 …

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NOTE 14 INCOME TAXES No income tax benefit has been recorded for the years ended March 31, 2026, and 2025, as the Company has incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. The following table presents the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of March 31, 2026, and 2025: SCHEDULE OF DEFERRED TAX March 31, 2026 March 31, 2025 Deferred income tax asset: Net operating loss carryforwards $ 14,816,000 $ 12,723,000 Stock compensation 2,398,000 1,857,000 Other 637,000 98,000 Total deferred tax assets 17,851,000 14,678,000 Valuation allowance (17,851,000 ) (14,678,000 ) Net deferred tax assets $ - $ - As of March 31, 2026, the Company had net operating loss carryforwards of approximately $ 51,550,000 of which $ 7,000,000 has been accumulated in our pre-merger operating subsidiary, Gel-Del Technologies, Inc. Internal Revenue Code (IRC) 382 potentially limits the utilization of net operating losses when there is a greater than 50% change in ownership. The Company has not performed an analysis under IRC 382 related to the changes in ownership, which could place certain limits on the companys ability to utilize the NOLs. 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 def …

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(Q) Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public entities with fiscal years beginning after December 15, 2024. The Company adopted this guidance for the year ended March 31, 2026 and applied the guidance on a retrospective basis. The adoption did not have a material impact on the consolidated financial statements. Refer to Note 14 for further details. …

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NOTE 10 RETIREMENT PLAN 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, 2026 and 2025, the Company made contributions to the plan of $ 71,630 and $ 58,575 , respectively. …

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NOTE 15 SEGMENT REPORTING The Company manages the business activities on a consolidated basis and operates in one reportable segment. The Companys 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 Companys 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 Companys Chief Operating Decision Maker (CODM) in allocating resources and in assessing performance. The Companys CODM is the Chief Executive Officer. The measurement of segment profit or loss that the CODM uses to evaluate the performance of the Companys 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 2026 2025 For the …

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NOTE 13 STOCKHOLDERS EQUITY 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 Companys 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 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 exerci …

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NOTE 16 SUBSEQUENT EVENTS On April 7, 2026, the Company received $ 600,000 proceeds from the March 31, 2026 subscription receivable, in connection with the sale of 750,000 shares of common stock issued at $ 0.80 per share recorded against a subscription receivable and common stock to be issued on March 31, 2026. In April 2026, the Company issued an aggregate of 70,652 shares of common stock to an employee and board members with a fair value on the date of grant of $ 49,750 , recorded as stock compensation expense. In April 2026, the Company issued 176,174 shares of common stock, with a fair value of $ 125,000 to settle $ 125,000 of accrued dividends on Series B Preferred Stock. In May 2026, the Company issued an aggregate of 325,000 shares of common stock to employees for performance bonuses with a fair value of $ 253,500 recognized as compensation expense on the date of issuance. In May 2026, the Company issued 25,000 shares of common stock to an employee pursuant to an employment agreement as compensation with a fair value of $ 19,975 recognized as compensation expense on the date of issuance. On June 8, 2026, the Company signed a private placement subscription agreement with one investor for a total of 1,875,000 shares of common stock with a fair value of $ 0.80 per share for total proceeds of $ 1,500,000 recorded as a subscription receivable and common stock to be issued. Total proceeds received against the subscription receivable at June 29, 2026 totaled $ 150,000 for 18 …

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