Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 31

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
---
the restructuring occurs.

If
the total future cash payments under the new terms exceed the carrying amount of the payable at the date of restructuring, no adjustment
to the carrying amount of the payable is made. Instead, the company calculates a New Effective Interest Rate (EIR) based on the revised
terms of the restructured payable. The debt is then amortized over the remaining life of the payable using the new EIR, with interest
expense recognized based on this rate in future periods.

20

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(p)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.

(q)Common Stock Reverse Split

In
October 2024, the Company effectuated a one-for-hundred reverse stock split. All share, stock option and warrant information has been
retroactively adjusted to reflect these stock splits. See Note 3 for additional disclosure.

(r)Recent Accounting Pronouncements

Accounting Pronouncement Pending
Adoption

In November 2024, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, “Disaggregation of Income
Statement Expenses, which requires public companies to disaggregate key expense categories such as inventory purchases, employee compensation
and depreciation in their financial statements. Further, in January 2025, the Financial Accounting Standards Board (“FASB”)
issued Accounting Standards Update No. 2025-01, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation
Disclosures (Subtopic 220-40): Clarifying the Effective Date” which clarifies the effective date of ASU 2024-03. The guidance is
effective for all public entities with fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning
after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact that adoption of the provisions of ASU 2024-03
will have on the Company’s Condensed Consolidated Financial Statements.

In December