Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 34

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 have any impact on the Company’s Condensed Consolidated Financial Statements.

In
September 2025, the FASB issued ASU 2025-07 which refines the scope of the guidance on derivatives in ASC 815 and clarifies the guidance
on share-based payments from a customer in ASC 606. The ASU is intended to address concerns about the application of derivative accounting
to contracts that have features based on the operations or activities of one of the parties to the contract and to reduce diversity in
the accounting for share-based payments in revenue contracts. ASU 2025-07 is effective for annual reporting periods beginning after December
15, 2026, including interim periods within those annual periods. Early adoption is permitted. The Company is evaluating the impact that
adoption of the provisions of ASU 2025-07 will have on the Company’s Condensed Consolidated Financial Statements.

There
are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company
does not believe any of these accounting pronouncements have had, or will have, a material impact on its Condensed Consolidated Financial
Statements or disclosures.

24

ZOOMCAR HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)

3AReverse
                                            Stock Split

The
Company’s shareholders authorized, and the Board of Directors approved for a 1-for-100 Reverse Stock Split (the ” First Reverse
Stock Split”), which became effective on October 21, 2024. Any fractional shares that would have otherwise resulted from the First
Reverse Stock Split were rounded up to the nearest whole share.

Every
100 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.

The
Company’s shareholders authorized, and the Board of Directors approved for a 1-for-20 Reverse Stock Split (the “Second Reverse Stock
Split”), which became effective on March 21, 2025. Any fractional shares that would have