Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 84

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 Company has a 90-calendar-day cure period, expiring
on November 3, 2025, to regain compliance by maintaining a Global Market Capitalization of at least $5 million for 10 consecutive trading
days.

(B)On July 29, 2025, the Company notified Grant Thornton Bharat LLP (“GT Bharat”) that it was
dismissed as the Company’s independent registered public accounting firm, effective immediately. The decision to dismiss GT Bharat
was approved by the Audit Committee of the Company’s Board of Directors. On July 29, 2025, the Audit Committee of the Company’s
Board of Directors approved the engagement of Bansal & Co LLP (“Bansal”) as the Company’s new independent registered
public accounting firm for the fiscal year ending March 31, 2026, effective immediately.

Critical Accounting Policies and Estimates 

The Company prepared its
financial statements in accordance with GAAP. Our preparation of these financial statements requires us to make estimates, assumptions
and judgments that affect the reported amounts of assets, liabilities, and related disclosures at the date of the financial statements,
as well as revenue and expense recorded during the reporting periods. The Company evaluates our estimates and judgments on an ongoing
basis.

The Company bases its estimates
on historical experience and/or other relevant assumptions that the Company believes to be reasonable under the circumstances. Actual
results may differ materially from management’s estimates.

See Note 2, Summary of Significant
Accounting Policies, to our Unaudited Condensed Consolidated Financial Statements for further information related to our critical accounting
policies and estimates, which are as follows:

Debt

The debt instruments
of the Company consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic
prepayments of scheduled instalments and the same has been accounted for under ASC 470-50.

June 2025 Bridge Notes

During
the three months ended June 30, 2025, the Company has issued Bridge Notes which are repayable at the principal value along with an interest
of 12% p.a. on the maturity date and has been accounted for under ASC 470-10. The Company issued these Bridge Notes at discount and incurred
expenses on the issue of these Notes. As per ASC 835, the discount and the expenses incurred on issue of the Bridge Notes have been amortized
over the contractual period using the effective interest method. The Bridge Notes liabilities have been presented net off