Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 29

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 issuance pursuant to the Company’s equity incentive plans was also reduced proportionately.

    3B
    Troubled Debt Restructuring

Payable against rental dues

On April 22, 2025, the Company
entered into a settlement agreement with Siddharth Assets, wherein the lessor has waived a portion of the outstanding liability and penalty
accrued thereon. The Company agreed to make settlement in four monthly instalments, starting from April 2025. In the event of default,
$1,166 per month for every defaulted installment until realisation of the entire settlement amount shall be paid additionally. During
the quarter ended June 2025, the Company has paid all the due instalments. As of June 30,2025, the Company has $4,083 balance payable
to Siddharth Assets.

The Company has accounted for
this transaction as troubled debt restructuring under ASC 470-60. The gain on troubled debt restructuring recorded during the quarter
ended June 30, 2025 is $72,912 ($Nil during the quarter ended June 30, 2024). Basic EPS was increased by $0.01 as a result of these gains
during the quarter ended June 30, 2025 (June 30, 2024 - $Nil).

(This space has been left
intentionally blank)

23

ZOOMCAR HOLDINGS, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

4Cash and cash equivalents

The components of cash and cash equivalents were as follows:

    (In
    USD)
    As at 
    June 30,
 2025  
    March 31,
 2025 

    Balances
    in bank accounts* 
    $385,229  
    $1,077,275 
  
    Cash and cash equivalents 
    $385,229  
    $1,077,275 

  * This includes $91,226 collected on behalf of but not yet remitted to the Hosts which are included in accounts payable. Refer note 13.   Pursuant to Notice of Subpoena and Restraining Notice dated June 30, 2025 received by the Company, balances in bank accounts includes amounts held with JPMorgan Chase Bank has been taken/held in order to satisfy judgement/order held against the Company. Refer to Note 15. 

5Accounts receivable, net of allowance for credit losses

The components