Company: ZCARW
Filing Date: 2025-03-04
Form Type: S-1
Source: 0001213900-25-020176
Chunk: 146

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-04
Form: S-1
Chunk 146
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 Common Stock, pre-funded, Series A and Series B warrants in the November 2024 and December 2024 offering (Refer to Note 22) and as consideration to the placement agents for the issuance. The Common stock and pre-funded warrants were classified as equity in accordance with ASC 815-40 since all the conditions required for equity classification are met. The Series A warrants and Series B warrants were classified as derivative financial instruments in accordance with ASC 815-10-15-83 since they contain an underlying, can only be net settled and required no initial net investment. Accordingly, the derivative instruments were measured at fair value and subsequently revalued at each reporting date. Upon issuance of these instruments, the Company had applied the with and without method and allocated a portion of the proceeds from the issuance to the Series A and Series B warrants based on the fair values of these warrants at initial measurement. The remaining proceeds were then allocated between the Common Stock and the pre-funded warrants using the relative fair value method.

| (b) | Warrants issued along with Redeemable 
 Promissory Note:                      |

During the nine months ended December 31, 2024, 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 since all the conditions required for equity classification are met. Upon issuance of the warrants, the Company had allocated a portion of the proceeds from the issuance of its Redeemable Promissory Note to the warrant based on the relative fair values of warrants and Redeemable Promissory Note in accordance with ASC 820. 81

| (c) | Warrants issued along with SSCPN                            
 and to placement agent (‘Derivative financial instrument’): |

During the year ended March 31, 2024, the Company issued warrants along with Senior Subordinated Convertible Promissory Note (“SSCPN)” and as consideration to the placement agent for the issuance of SSCPN. These warrants were deemed derivative instruments in accordance with ASC 815-10-15-83 since they contained an underlying, had cash less payment provisions, that could have been net settled in shares and had a very minimal initial net investment. Accordingly, the derivatives were measured at fair value and subsequently revalued at each reporting date until the close of Reverse Recapitalization consummated during year ended March 31, 2024.

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