Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 86

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 was fixed in accordance with agreement. Hence, as per ASC 815-10, the outstanding Series A Series B warrants
for both November 2024 and December 2024 offering have been reclassified to equity at the reclassification date fair value.

Warrants exercised before the reclassification
have been reclassified at their respective exercise date fair value and warrants exercised after the reclassification were adjusted with
additional paid in capital.

(b)
Warrants issued along with Redeemable Promissory Note:

During the year ended March 31, 2025,
the Company issued warrants along with Redeemable Promissory Note and as consideration to the placement agent for the issuance of the
Redeemable Promissory Note. These warrants were classified as equity in accordance with ASC 815-40 on the initial recognition.

Fair value measurements and financial instruments

Fair value is defined as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy, which prioritizes
the inputs used to measure fair value. The hierarchy, as defined below, gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy
are set forth below:

    Level 1
    Observable inputs such as quoted prices in active markets for identical assets or liabilities.

    Level 2
    Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs other than the quoted prices that are observable either directly or indirectly for the full term of assets or liabilities.

    Level 3
    Unobservable inputs in which there is little or no market data and that are significant to the fair value of the assets or liabilities.

During the three months ended June 30, 2025, the
Company’s primary financial instruments included cash and cash equivalents, investments, accounts receivables, other financial assets,
accounts payable, debt, unsecured convertible note and other financial liabilities. The estimated fair value of cash equivalents, accounts
receivable, accounts payable and accrued liabilities approximate their carrying value due to short-term maturities of these instruments.

Troubled debt restructuring

As per ASC 470-60 Troubled
Debt Restructuring (TDR) refers