Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 270

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 270
---
 shares prior to the First Reverse Stock Split)
of the Company’s Common Stock.

The SSCPN and Notes were adjusted
for their carrying value through Condensed Consolidated Statement of Operations as on date of Reverse Recapitalization and credited at
carrying value to the capital accounts upon conversion to reflect the stock issued.

During the year ended March 31, 2024,
the Company issued an unsecured convertible note (“Atalaya Note) which had features similar to that of SSCPN and were accounted
accordingly as enumerated above.

F-17 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| (l) | Net profit/(loss) per share attributable to common stockholders |

The Company computes net profit/(loss)
per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders
for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends
as if all the income for the period had been distributed. The Company’s convertible preferred stock is participating security. The
holders of the convertible preferred stock would be entitled in preference to common shareholders, at specified rate, if declared.

Then any remaining earnings would
be distributed to the holders of common stock and convertible preferred stock on a pro-rata basis assuming conversion of all convertible
preferred stock into common stock. This participating security do not contractually require the holders of such shares to participate
in the Company’s losses. As such, net losses for the periods presented were not allocated to the Company’s participating securities.

The Company’s basic profit/(loss)
per share is computed using the weighted-average number of ordinary shares outstanding during the period. The diluted profit/(loss) per
share is computed by considering the impact of potential issuance of common stock on the weighted average number of shares outstanding
during the period, except where the results would be anti-dilutive.

| (m) | Provisions and accrued expenses |

A provision is recognized in the
Condensed Consolidated Balance Sheets when the Company has a present legal or constructive obligation as a result of a past event, and
it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are
recognized at present value by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money.

Provisions for onerous contracts
are recognized when the expected