Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 148

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 148
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 not paid and does not anticipate paying dividend on its common
stock.

The Company estimates a forfeiture
rate on an annual basis for the purpose of computation of stock-based compensation expense. The rate is used consistently across the subsequent
interim periods during the year.

In case of cancellation of
stock-based awards with no concurrent grant of a replacement award or other valuable consideration, any unrecognized compensation cost
is recognized immediately on the cancellation date.

Debt

The debt instruments
of the Company consist of debentures and term loans from financial institutions. The Company based on available proceeds makes periodic
prepayments of scheduled instalments and the same has been accounted for under ASC 470-50.

Redeemable Promissory Notes

During the year ended March
31, 2025, the Company has issued Redeemable Promissory Notes which are repayable at the principal value on maturity date and has been
accounted for under ASC 470-10. The Company issued these Redeemable Promissory notes on discount and incurred expenses on issue of the
Redeemable Promissory Notes. As per ASC 835, the discount and the expenses incurred on issue of the Redeemable Promissory Notes have
been amortized over the period of the Redeemable Promissory note on a straight-line basis. The Redeemable Promissory Notes liabilities
have been presented net off the discount and issue expenses.

Debt Issuance costs 

Debt issuance costs consist
primarily of arrangement fees paid to Placement agent, professional fees and legal fees. These costs are netted off with the related
debt and are being amortized to interest expense over the term of the related.

The debt has been classified
into current or non-current based on the payment terms of the debt instruments. Non-current obligations are those scheduled to mature
beyond twelve months from the date of the Company’s Consolidated Balance Sheets.

Warrants

When the Company issues
warrants, it evaluates the balance sheet classification of the warrant to determine whether the warrant should be classified as equity
or as a derivative liability on the Consolidated Balance Sheets. In accordance with ASC 815- 40, Derivatives and Hedging- Contracts in
the Entity’s Own Equity (ASC 815-40), the Company classifies a warrant as equity so long as it is “indexed to the Company’s
equity” and several specific conditions for equity classification are met. A warrant is not considered indexed to the Company’s