PetVivo (PETV) - 2026 Q1 - Quarterly Report

PART I Financial Statements PetVivo Holdings, Inc. reported increased revenue to $297,500 but a wider net loss of $2.3 million for the quarter ended June 30, 2025, with total assets decreasing to $6.9 million and cash increasing to $3.3 million from $4.4 million in financing, alongside a going concern warning Consolidated Balance Sheets As of June 30, 2025, the company's total assets decreased to $6.9 million from $9.3 million, while cash and cash equivalents significantly increased to $3.3 million from $228 thousand, and total liabilities decreased to $3.2 million from $5.1 million Consolidated Balance Sheet Summary (Unaudited) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Assets | | | | Cash | $3,303,844 | $227,689 | | Total Current Assets | $4,400,859 | $5,609,567 | | Total Assets | $6,890,496 | $9,339,195 | | Liabilities & Equity | | | | Total Current Liabilities | $3,117,433 | $4,316,800 | | Total Liabilities | $3,159,519 | $5,119,947 | | Total Stockholders' Equity | $3,730,977 | $4,219,248 | Consolidated Statements of Operations For the three months ended June 30, 2025, revenues more than doubled to $297,500 from $123,751, yet the net loss available to common stockholders increased to $2.34 million from $2.05 million, primarily due to $466,720 in other expenses, despite an improved net loss per share of ($0.09) Consolidated Statement of Operations Summary (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $297,500 | $123,751 | | Gross Profit | $186,726 | $110,757 | | Operating Loss | ($1,844,317) | ($2,044,432) | | Net Loss | ($2,311,037) | ($2,047,063) | | Net Loss Per Share (Basic and Diluted) | ($0.09) | ($0.11) | | Weighted Average Shares Outstanding | 24,302,790 | 18,683,975 | Consolidated Statements of Cash Flows For the three months ended June 30, 2025, the company used $1.63 million in operating cash, with $4.71 million provided by financing activities, primarily from $4.4 million in preferred stock proceeds, resulting in a net cash increase of $3.08 million and an ending cash balance of $3.3 million Consolidated Statement of Cash Flows Summary (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | ($1,633,755) | ($1,530,469) | | Net Cash Used in Investing Activities | $0 | ($15,178) | | Net Cash Provided by Financing Activities | $4,709,910 | $1,470,658 | | Net Increase (Decrease) in Cash | $3,076,155 | ($74,989) | | Cash at End of Period | $3,303,844 | $12,414 | Notes to Financial Statements The notes detail accounting policies, including the termination of distribution agreements with MWI and Covetrus, new partnerships with Vedco and Clipper, a June 30, 2025 amendment to convertible notes reclassifying a $768,493 derivative liability to equity, a $314,768 lease termination fee, and reiterate the substantial doubt about the company's ability to continue as a going concern - The company mutually terminated its non-exclusive distribution agreements with MWI Veterinary Supply Co. in March 2025 and Covetrus North America LLC in February 2025[38][40] - New distribution partnerships were established with Vedco, Inc. and Clipper Distributing, LLC in December 2024[42] - On June 30, 2025, the company amended its convertible notes to fix the conversion price at $0.50 per share[78] - This modification was treated as a debt extinguishment, resulting in the re-measurement and reclassification of a $768,493 derivative liability to additional paid-in capital and the recognition of a $763,259 beneficial conversion feature[79][81] - The company terminated its ten-year lease on a 14,073 square foot production and warehouse space effective June 30, 2025, incurring total termination fees of $314,768[93] - The company has a history of net losses, negative operating cash flow, and an accumulated deficit of $93.5 million, which raises substantial doubt about its ability to continue as a going concern[99] - On March 26, 2025, the company entered into a subscription agreement for $5 million of Series B Preferred Stock[104] - The remaining $4.4 million was fully received and funded on June 24, 2025[104] Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes the 140% year-over-year revenue growth to new Precise PRP product sales, but notes a wider net loss due to non-cash charges, with liquidity significantly boosted by a $5 million private placement of Series B preferred stock, though these funds are only sufficient until December 31, 2025, reinforcing the going concern risk and need for additional capital Results of Operations Revenues for the three months ended June 30, 2025, increased to $297,500 from $123,751, driven by $149,257 in Precise PRP sales, while operating expenses decreased slightly to $2.03 million from $2.16 million, but the net loss increased to $2.31 million from $2.05 million due to $466,720 in other expenses Results of Operations Comparison | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $297,500 | $123,751 | | Cost of Sales | $110,774 | $12,994 | | Total Operating Expenses | $2,031,043 | $2,155,189 | | Net Loss | ($2,311,037) | ($2,047,063) | - The increase in revenues was primarily due to sales of Precise PRP products, which began following an exclusive licensing agreement with VetStem[143] Liquidity and Capital Resources As of June 30, 2025, the company had working capital of $1.28 million and cash of $3.3 million, achieved through a $5 million private placement of Series B convertible preferred stock, yet management believes this is insufficient for the next twelve months, necessitating additional capital - The company's working capital was $1,283,426 as of June 30, 2025, with cash and cash equivalents of $3,303,844[151] - Net cash provided by financing activities was $4.7 million, primarily from $4.4 million in proceeds from the Series B preferred stock receivable[154] - Management states that despite the recent $5 million financing, they do not have sufficient cash for the next twelve months and will need to raise additional capital[152] Going Concern The company's financial statements include an explanatory paragraph from auditors expressing substantial doubt about its ability to continue as a going concern, as management believes the $5 million private placement proceeds are only sufficient to fund operations until December 31, 2025 - The company's auditors have expressed substantial doubt about its ability to continue as a going concern[157] - Management believes the proceeds from the recent $5 million private placement are sufficient to fund operations only until December 31, 2025[157] Qualitative and Quantitative Disclosures About Market Risk This section is not required for the company as it qualifies as a smaller reporting company - Disclosure is not required as the company is a smaller reporting company[164] Controls and Procedures Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to material weaknesses in complex accounting for convertible notes and derivative liabilities, with remediation efforts expected to be completed before March 31, 2026 - Management concluded that disclosure controls and procedures were not effective as of June 30, 2025[165] - The ineffectiveness is due to material weaknesses related to the accounting for modifications of convertible notes, beneficial conversion features, warrant debt discounts, and derivative liabilities[165] - Remediation efforts are underway, including hiring additional accounting personnel, with an expected completion date prior to March 31, 2026[166] PART II. OTHER INFORMATION Legal Proceedings The company reports that it is not involved in any material legal proceedings outside of the ordinary course of business - The company is not currently involved in any material legal proceedings[169] Risk Factors The company states there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - The company refers to the risk factors disclosed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025, indicating no material updates[171] Unregistered Sales of Equity Securities and Use of Proceeds During the quarter, the company issued shares of common stock in several unregistered transactions, including for consulting services, RSU vesting, conversion of accounts payable, and a warrant exercise generating $140,000 in proceeds - The company conducted several unregistered sales of equity securities during the quarter, including shares issued for consulting services in April and May 2025, shares issued upon the vesting of RSUs in April and June 2025, 8,000 shares issued to convert a $6,000 accounts payable balance in June 2025, and 70,000 shares issued upon a warrant exercise, generating $140,000 in proceeds in June 2025[172][173][174] Defaults Upon Senior Securities The company reported no defaults upon senior securities - No defaults upon senior securities were reported[176] Other Information The company reported no other information - No other information was reported[178] Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications as required by the Sarbanes-Oxley Act of 2002 and Inline XBRL data files - The report includes standard exhibits such as CEO/CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[180]