Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 19

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 The associated revenue is recognized when the customer redeems the loyalty points. The retail value of points is estimated
based on the current retail value measured as of the date the loyalty points are earned, less an estimated amount representing loyalty
points that are not expected to be redeemed (“breakage”). Breakage is reviewed on an annual basis and includes significant
assumptions such as historical breakage trends, internal Company forecasts and extended redemption period, if any.

11

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

2.Summary of Significant Accounting Policies (Continued)

Vouchers

During the six months ended September
30, 2025, the Company sold vouchers of certain redemption value that are utilized for payment towards facilitation fees. Vouchers may
be sold for less than their redemption value and in such cases, the transaction price is limited to the amount received, unless additional
consideration is expected. The sale of such vouchers results in the deferral of revenue equivalent to the amount received on the date
of sale. The associated revenue is recognized when the customer utilizes such voucher. On expiry of validity of the voucher, the unutilized
portion is recognized as Other operating revenues in the Condensed Consolidated Statements of Operations.

Contract liabilities

Contract liabilities primarily consist
of obligations to customers for advance received against bookings, revenue-share payable to customers for vehicles listed by them on Company’s
portal for short-term rentals and related to Company’s points-based loyalty program. As per ASC 606- 10-50-14 the Company does not
aggregate amount of transaction price allocated to remaining performance obligations as required under ASC 606-10-50-13, since the company’s
performance obligation is a part of a contract that has an original expected duration of one year or less.

vii.Cash and cash equivalents

Cash and cash equivalents include cash
on hand, bank balances. Cash and cash equivalents are recorded at cost, which approximates fair value.

Cash and cash equivalents include amounts
collected on behalf of but not yet remitted to the Hosts which are included in accrued and other current liabilities in the Condensed
Consolidated Financial Statements.

viii.Restricted Cash

The Company is required to place cash
in an indemnification escrow fund with the placement agent for all indemnification liabilities and expenses payable by the Company as
per the placement agent agreement for a period of 3 years from closing of the November