Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 244

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 244
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 on an actuarial valuation using the projected unit credit method
and is charged to Condensed Consolidated Statements of Operations in the year in which they accrue.

Defined
contribution plan

Eligible
employees of the Company in India participate in a defined contribution fund in accordance with the regulatory requirements in the Indian
jurisdiction. Both the employee and the Company contribute an equal amount to the fund which is equal to a specified percentage of the
employee’s salary.

The
Company has no further obligation under defined contribution plans beyond the contributions made under these plans. Contributions are
charged to profit or loss and are included in the Condensed Consolidated Statements of Operations in the year and/or period in which
they accrue.

xx.Stock-based compensation

The
Company accounts for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of US
GAAP, which requires compensation cost for grant-date fair value of stock-based awards to be recognized over the requisite service period.
The Company includes a forfeiture estimate in the amount of compensation expense being recognized based on the Company’s estimate
of equity instruments that will eventually vest. The fair value of stock-based awards, granted or modified, is determined on the grant
date at fair value, using appropriate valuation techniques. For the options that vest in a graded vesting manner over the vesting period,
the Company has adopted the graded vesting approach for recognition of compensation cost over the vesting period.

17

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary
of Significant Accounting Policies (Continued)

For
stock options or restricted stock units with service-based vesting conditions only, the valuation model, typically the Black-Scholes
option-pricing model, incorporates various assumptions including expected stock price volatility, expected term, and risk-free rates.
For stock options or restricted stock units with graded vesting, the fair- value-based measure is estimated of the entire award by using
a single weighted-average expected term. The Company estimated the volatility of common stock on the date of the grant based on weighted-average
historical stock price volatility of comparable publicly traded companies in its industry group. The risk-free rate is based on the U.S.
Treasury yield curve in effect at the time of grant with a term equal to the expected term. The Company estimates the term based on the
simplified method for employee stock options considered to be “plain vanilla” options as the Company’s