Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 2246

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 7A
Chunk 2246
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of rights under prior financing agreements. These have been recorded as “Loss on litigation settlement” amounting to $12,738,865
and “Loss on extinguishment of liability” amounting to $3,458,248 under “Other expenses” in the Consolidated Statements
of Operations based on the fair value of the instruments issued (Refer Note 26).         Placement agent compensation across all offerings, wherever applicable included warrants to purchase
10% of the shares of common stock and shares underlying the pre-funded warrants, Series A Warrants equal to 10% of those sold at closing,
and Series B Warrants equal to 10% of those issued at or following the Reset Date. Specifically, 37,930 Common Stock Warrants were issued,
exercisable at prices ranging from $39.00 to $80.60 per share (1.95 to 4.03 prior to the Second Reverse Stock Split), and classified
as equity instruments.         Holders of common stock are entitled to one vote per share, dividends at the discretion of the Board of Directors, and a pro-rata share of residual assets upon liquidation. This comprehensive activity reflects the Company’s capital restructuring and financing strategy during the reporting period.         Series A warrants were issued with initial exercise prices of $80.60
($4.03 prior to the Second Reverse Stock Split), $39.00 ($1.95 prior to the Second Reverse Stock Split), and $6.24, each exercisable for
five years from the initial exercise date. Series B warrants were issued with zero initial eligibility, subject to increase on the Reset
Date based on the Reset Share Amount formula. All warrants were adjusted for the Second Reverse Stock Split. Placement agents received
10% of the Series A and Series B warrants issued to investors, along with Common Stock Warrants, as compensation. The Company classified
all Series A and Series B warrants as derivative financial instruments under ASC 815- 10-15-83 upon initial recognition. Due to anti-dilution
and reset provisions, the exercise prices of Series A and Series B warrants were adjusted to the floor price during the year, and the
number of warrants was increased to maintain the aggregate exercise price. As a result, the number of exercisable warrants became fixed,
eliminating variability, and the outstanding Series A and Series B warrants were reclassified to equity at their respective reclassification
date fair values. Warrants exercised before re