Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 35

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 otherwise resulted from the Reverse Stock
Split were rounded up to the nearest whole share.

Every
20 shares of issued and outstanding Common Stock has been consolidated into one share, without affecting the par value. In addition,
(i) a proportionate adjustment has been made to the number of outstanding warrants, per share exercise price and the number of shares
issuable upon the exercise of all outstanding stock options and warrants to purchase shares of common stock as per the terms and conditions
of the respective warrant agreements, and (ii) the number of shares reserved for issuance pursuant to the Company’s equity incentive
plans was also reduced proportionately.

3BTroubled
                                            Debt Restructuring

Payable
against rental dues

On
April 22, 2025, the Company entered into a settlement agreement with Siddharth Assets, wherein the lessor has waived a portion of the
outstanding liability and penalty accrued thereon. The Company agreed to make settlement in four monthly instalments, starting from April
2025. In the event of default, $1,127 per month for every defaulted installment until realisation of the entire settlement amount shall
be paid additionally. During the quarter ended September 2025, the Company has fully paid the balance payable to Siddharth Assets.

The
Company has accounted for this transaction as troubled debt restructuring under ASC 470-60. The gain on troubled debt restructuring recorded
for the three months and six months ended September 30, 2025 is $Nil and $72,912 respectively ($352,447 for the three months and six
months ended September 30, 2024). Basic EPS was increased by $0.01 as a result of these gains during the period ended September 30, 2025.

Accounts
Payable

During
the year ended March 31, 2025, the Company carried out negotiations with its vendors and as per the revised agreements with the vendors,
they have granted a short-term deferral in payments and/or reduction in outstanding liability.

The Company has accounted for this transaction
as troubled debt restructuring under ASC 470-60 and the same was recorded as a net gain on troubled debt restructuring in the Consolidated
Statements of Operations during the year ended March 31, 2025. As per the terms of the revised contract with one of its vendor, the Company
had to pay the remaining liability within a specified period of time otherwise the reduction in liability will be reversed.

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