Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1641

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 5
Chunk 1641
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 the year ended March 31, 2025, the exercise
price of Series A warrants for both November 2024 and December 2024 offering was adjusted to equal the floor price and the number of
warrants were adjusted such that aggregate exercise price remains same.

During the year ended March 31, 2025, the reset
price of Series B warrants for both November 2024 and December 2024 offering was adjusted to equal the floor price and the warrant holders
are entitled to the maximum warrants that could be issued as per the agreement. Hence, as of March 31, 2025, the number of warrants exercisable
towards Series A and Series B of both the November 2024 and December 2024 offering is fixed and hence there is no variability w.r.t.
the number of warrants due to changes in the share price of the Company. Hence, 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 at their respective fair value on such date and warrants exercised after the
reclassification were directly adjusted with additional paid in capital. 

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 placement agents 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 warrant,
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.

Warrants to be converted into Common Stock:

The Company’s warrants
to purchase Common Stock were classified as equity. Upon issuance of the warrant, the Company had allocated a portion of the proceeds
from the issuance of its preferred stock to the warrant based on the relative fair values of warrants and preferred stock.

Financial liabilities measured at fair value

Convertible Promissory notes (“Notes”),
Senior Subordinated Convertible Promissory Note (“SSCPN”) and Unsecured Convertible Note (“Atalaya Note”)

During the year ended March
31,