Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 23

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
---
, the variability in number of warrants exercisable towards Series A and Series B of both the November
2024 and December 2024 offering was fixed in accordance with agreement. Hence, as per ASC 815-10, the outstanding Series A Series B warrants
for both November 2024 and December 2024 offering have been reclassified to equity at the reclassification date fair value.

Warrants exercised before the reclassification
have been reclassified at their respective exercise date fair value and warrants exercised after the
reclassification were adjusted with additional paid in capital.

18

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(b)Warrants issued along with Redeemable Promissory Note:

During the year ended March 31,
2025, the Company issued warrants along with Redeemable Promissory Note and as consideration to the placement agent for the issuance of
the Redeemable Promissory Note. These warrants were classified as equity in accordance with ASC 815-40 on the initial recognition.

xxiii.Net profit/(loss) per share attributable to common stockholders

The Company computes net profit/(loss)
per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders
for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends
as if all the income for the period had been distributed. The Company’s convertible preferred stock is participating security. The
holders of the convertible preferred stock would be entitled in preference to common shareholders, at specified rate, if declared.

Then any remaining earnings would
be distributed to the holders of common stock and convertible preferred stock on a pro-rata basis assuming conversion of all convertible
preferred stock into common stock. This participating security do not contractually require the holders of such shares to participate
in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities.

The Company’s basic profit/(loss)
per share is computed using the weighted-average number of ordinary shares outstanding during the period. The diluted profit/(loss) per
share is computed by considering the impact of potential issuance of common stock on the weighted average number of shares outstanding
during the period, except where the results would be anti- dilutive.

xxiv.Provisions and accrued expenses

A provision is recognized in the
Condensed Consolidated Balance Sheets when the Company has a present legal or