Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 295

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 295
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 (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 $ and $ for three months and nine months ended December 31, 2024, respectively 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 |     | $          | - |
| Total                                                              |     |                                  |     | $          | 7,950,503 |     |                                  |