Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 250

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 250
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 the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized
income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or
measurement are reflected in the period in which the change in judgment occurs. Interest related to unrecognized tax benefits in interest
expense and penalties.

xxviii.Contingencies

The
Company is subject to legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses associated
with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information
becomes available or circumstances change.

xxix.Segment information

Operating
segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the
Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The
Company’s CODM is its Board of Directors. The Company has determined it has one operating and reportable segment as the CODM reviews
financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

22

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary
of Significant Accounting Policies (Continued)

xxx.Common Stock Reverse Split

In October 2024 and March 2025, the Company
effectuated a one-for-hundred and a one-for- twenty reverse stock split, respectively. All share, stock option and warrant information
has been retroactively adjusted to reflect these stock splits.

xxxi.Reclassification

Certain prior year amounts have been
reclassified to conform with current year presentation. These changes did not have any effect on net loss, stockholder's equity, the
Condensed Consolidated Statements of Operations or the net change in cash and cash equivalents in the Condensed Consolidated Statement
of Cashflows.

xxxii.Recent
                                            Accounting Pronouncements

Accounting
Pronouncement Pending Adoption

In
December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” to improve
income tax disclosure requirements by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation
and (2) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to the income tax disclosure
requirements. The guidance