Company: ZCARW
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110391
Chunk: 943

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 943
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The Company had filed a registration
statement on Form S-1 on May 05, 2025, which did not take effect for resale of the securities that were issued in the Third Closing.

Thereafter, on June 6, 2025,
the Company issued a settlement letter (the “Settlement Letter”) to each of the investors from the First and the Second Closings
(the “Settlement Investors”), pursuant to which the Settlement Investors agreed to the settlement of liquidated damages arising
from Section 2.4 of the Registration Rights Agreements with the Investors, entered into on December 23, 2024 and January 31, 2025, respectively
(“RRAs”). Under the provisions of the Settlement Letter, the Company agreed to issue an aggregate of 1,950,600 pre-funded
warrants with an aggregate value of US$3,023,400 to the Settlement Investors (the “Settlement Warrants”), with each Settlement
Warrant having an exercise price of $0.0001 per share of Common Stock, in consideration for the full payment of liquidated damages owed
to each Settlement Investor under Section 2.4 of the applicable RRA, and each Settlement Investor’s release of the Company from
any and all claims thereunder including, without limitation any additional liquidated damages. The liquidated Damages were calculated
till such period that the Investor first became eligible to freely resell the underlying securities under Rule 144 of the Securities Act
of 1933. The valuation of the Settlement Warrants was calculated based on the volume-weighted average price of the Company’s common
stock over the five (5) trading days immediately preceding June 6, 2025.

116

The Settlement Warrants may
be exercised at any time until they are exercised, in full, at an exercise price of $0.0001 per share of Common Stock, and may also be
exercised on a cashless exercise basis, in lieu of any cash payment, in accordance with the formula provided in the Settlement Warrants.

Once the restriction under
Rule 144 of Securities Act of 1933 are removed from the above mentioned Settlement Warrants and common stock is issued pursuant to that,
it is most likely that most of the securities will be sold.

In addition, the shares of
Common Stock reserved for future issuance under the Incentive Plan will become eligible for sale in the public market once those shares
are issued, subject to any applicable vesting requirements