Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 419

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 419
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 in connection with a
most favored nations provision included in the transaction documents for a prior financing of Zoomcar, Inc. or (ii) to settle outstanding
amounts owed by the Company to its Placement Agent and the Legal Counsels.

117

On June 24, 2025, the Company
has issued a bridge note to certain investors (1800 Diagonal Lending LLC, and Boot Capital LLC) totaling $402,000 at a discount of
$42,000. The note is repayable in five monthly installments beginning November 30, 2025, and maturing on March 31, 2026, with interest
accruing at 12% per annum on the outstanding principal. The Company received net proceeds of $350,000 after adjusting issuance
cost of $10,000. In the event of an uncured default under either of the Bridge notes, the holder has the right to elect to convert
the outstanding amount (includes principal, accrued interest, default interest, and other fees as applicable) into the Company’s
Common stock at a conversion price equal to 75% of the lowest trading price of the Company’s Common stock during the fifteen trading
days immediately prior to the applicable conversion date.

On July 31, 2025 , the Company
further issued to certain investors (Boot and DLL) convertible Bridge notes for a total principal amount of $206,225 with an initial issue
discount of $23,725. The July Bridge Notes include scheduled monthly installment repayments and interest payments starting August 30,
2025 and have a maturity date of May 31, 2025, with interest at 12% per annum. The net proceeds disbursed to the Company were $175,000
after deduction of legal and due diligence fees of $7,500. Hence, the total debt issuance costs amounts to $7,500. In the event of an
uncured default under either of the July Bridge Notes, the July Note Holders have the right to elect to convert the outstanding amount
(includes principal, accrued interest, default interest, and other fees as applicable) into the Company’s Common stock at a conversion
price equal to 75% of the lowest trading price of the Company’s Common stock during the fifteen trading days immediately prior to
the applicable conversion date.

On August 19, the Company
issued a note to Labrys totaling a principal amount of $180,000 at a discount of $18,000. The