Company: ZCARW
Filing Date: 2025-03-04
Form Type: S-1
Source: 0001213900-25-020176
Chunk: 292

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-04
Form: S-1
Chunk 292
---
 TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company has classified both the Series A and Series B warrants (both November 2024 and December 2024 offering) as derivative financial instruments as per ASC 815-10-15-83.

The gain on fair value change of the derivative financial instruments recorded was $ 5,471,519and $ 5,471,519, respectively, for three months and nine months ended December 31, 2024 which was recognized in the Condensed Consolidated Statements of Operations for their respective period (as no portion of such fair value adjustment resulted from instrument-specific credit risk).

As per the terms of the agreement, the number of warrants issued in the November 2024 and December 2024 offering are subject to anti-dilution adjustments wherein the exercise price of these Warrants will be adjusted to equal the floor price, if the Company secures any funding in a variable rate transaction and the number of warrants will also be adjusted such that aggregate exercise price of the warrants remains the same. Hence, the exercise price of warrants issued in November 2024 offering will be adjusted to equal the floor price once the stockholder’s approval is received and the exercise price of the warrants issued in December 2024 offering will also be adjusted to equal the price so adjusted for the warrants issued in the November 2024 offering.

The fair value of derivative financial instruments as on December 31, 2024 and March 31, 2024 are as follows:

|                                                        |     | December             
 31, 2024             |     |       |           |     | March                 
 31, 2024              |     |       |   |
|:-------------------------------------------------------|:----|:---------------------|:----|:------|----------:|:----|:----------------------|:----|:------|:--|
| As at                                                  |     | Balance              
 Sheet                
 Location             |     | Fair  
 Value |           |     | Balance               
 Sheet                 
 Location              |     | Fair  
 Value |   |
| Derivatives                                            
 not designated as hedging instruments under ASC 815-20 |     |                      |     |       |           |     |                       |     |       |   |
| Series                                                 
 A and Series B Warrants                                |     | Derivative financial 
 instruments          |     | $     | 7,950,503 |     | Derivative            
 financial instruments |     | $     |